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Study on the effectiveness and influencing factors of china’s carbon emissions trading policy from industries’ perspective

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Abstract

China’s national carbon trading market follows the “prudent start, easy before difficult” industry inclusion principle, evaluating industries’ carbon reduction effects under carbon trading policy can not only help to review the policy implementation outcomes, but also suggest early market entry preparation for industries with significant reduction effect. However, few relevant studies have been found. This paper evaluates policy’s the overall and industries’ carbon reduction effect, analyses the effect influencing factors, and tests the robustness of the results from several aspects. The results show that: (1) From the overall perspective, it shows a lag in the effect at the beginning of the policy implementation. The policy produces a significant effect in the second year of implementation, and maintains a good emission reduction effect after 5 years. (2) From the industries’ perspective, the mining industry achieves a significant carbon emission reduction effect in the first year of policy implementation, and the emission reduction trend is good. The manufacturing, construction and electric also have significant carbon reduction performance. While the transportation does not perform well in emission reduction during the experimental period. (3) There are different relationships between economic development factors and carbon emissions of various industries. Mining, manufacturing, and wholesale are all inverted "N" shape, while electric and construction are in inverted “U” shape; industrial structural adjustment and technological progress has significant positive effects on carbon emission reduction of the industries. This paper can provide some reference value for the improvement of carbon trading policy, the allocation of industry carbon allowances and the decision of future industry inclusion in the national carbon emission trading market, and can also provide theoretical and practical experience for the emerging carbon market in developing countries.

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Funding

National Natural Science Foundation of China,72171081

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Authors and Affiliations

  1. School of Economics and Management, North China Electric Power University, 2 Beinong Road, Huilongguan Town, Changping District, Beijing, 102206, China

    Lihui Zhang, Jing Luo, Zhongqun Wu & Yifei Li

Authors
  1. Lihui Zhang
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  2. Jing Luo
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  3. Zhongqun Wu
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  4. Yifei Li
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Contributions

Lihui Zhang proposed concept of the article, overall inspection Jing Luo contributed to main manuscript writing, data collecting, model building and result analyzing. Zhongqun Wu contributed to supervising. Yifei Li contributed to formatting and grammar checking. All authors reviewed the manuscript.

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Correspondence to Jing Luo.

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Appendix

See Table 6, 7, 8, 9, 10 and 11.

See Figs. 4 and 5.

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Zhang, L., Luo, J., Wu, Z. et al. Study on the effectiveness and influencing factors of china’s carbon emissions trading policy from industries’ perspective. Clean Techn Environ Policy (2024). https://doi.org/10.1007/s10098-024-02817-y

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