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Carbon trading mechanism and industrial pollution behavior: A study based on regression discontinuity design analysis

Author

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  • Kong, Jiangwei
  • Gao, Mengxi

Abstract

This study investigates the impact of environmental regulations, specifically the carbon trading mechanism, on industrial pollution reduction. Framed within a comprehensive theoretical framework, the research hypotheses explore the influence of the carbon trading mechanism and its interaction with carbon emission trading scale on pollution reduction in industrial enterprises. The study employs Regression Discontinuity Design (RDD) and introduces control variables to provide a nuanced understanding of the relationships.Results indicate a significant impact of the carbon trading mechanism on pollution reduction. This study contributes to understanding the intricate relationships between policy implementation, trading scale, and industrial pollution reduction.

Suggested Citation

  • Kong, Jiangwei & Gao, Mengxi, 2024. "Carbon trading mechanism and industrial pollution behavior: A study based on regression discontinuity design analysis," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324010912
    DOI: 10.1016/j.frl.2024.106061
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