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Did China's energy consumption permit trading scheme improve green economic efficiency? Prefecture-level evidence from China

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  • Gao, Yuxin
  • Gao, Ming

Abstract

Improving green economic efficiency is necessary for China to address resource shortages and achieve sustainable development. Recent research has focused on the impact of the Energy Consumption Permit Trading Scheme (ECPTS) on environmental pollution. However, there has been little research on how the ECPTS affects green economic efficiency. Based on panel data from 282 cities in China from 2004 to 2020, this study employed the super-efficiency SBM model to measure the green economic efficiency of these cities and the DID model to empirically test the impact, heterogeneity, and mechanisms of the ECPTS on green economic efficiency. The results indicate that the ECPTS significantly improves urban green economic efficiency in China. This conclusion still holds after a series of robustness tests. Heterogeneity analysis shows that the ECPTS significantly enhances green economic efficiency in central, non-first-tier, and resource-based cities. Further mechanism analysis indicates that the promotion of energy efficiency during the sample period is the primary driver of the improvement in urban green economic efficiency. Finally, the research results provide a reference for policy-makers to support the implementation of the ECPTS and enhance urban green economic efficiency.

Suggested Citation

  • Gao, Yuxin & Gao, Ming, 2024. "Did China's energy consumption permit trading scheme improve green economic efficiency? Prefecture-level evidence from China," Energy, Elsevier, vol. 308(C).
    • Handle: RePEc:eee:energy:v:308:y:2024:i:c:s0360544224025180
    DOI: 10.1016/j.energy.2024.132744
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