IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i12p2859-d1412589.html
   My bibliography  Save this article

Emission Reduction Effects of China’s National Carbon Market: Evidence Based on the Power Sector

Author

Listed:
  • Yingying Xu

    (Business School, Wuchang University of Technology, Wuhan 430223, China)

  • Shan Zhao

    (School of Humanities and Social Science (School of Public Administration), Beihang University, Beijing 100191, China
    These authors contributed equally to this work.)

  • Boxiao Chu

    (School of Humanities and Social Science (School of Public Administration), Beihang University, Beijing 100191, China
    These authors contributed equally to this work.)

  • Yinglun Zhu

    (School of International Economics, China Foreign Affairs University, Beijing 100091, China)

Abstract

The power sector is one of the major CO 2 -emitting industries in China. It is also the first key emissions control industry included in China’s national carbon trading market established in 2021. Therefore, based on the data of 30 provinces and cities in China from 2015 to 2022, this study analyzes the impact of the national carbon market policy on the carbon emissions of the power industry based on the generalized Difference-in-Difference (DID) model. Based on the method of text analysis, this paper constructs the carbon market policy intensity index of each region and incorporates it into the DID model. Empirical analysis finds that the national carbon market policy can significantly inhibit the carbon emissions of the power industry. However, the heterogeneity analysis of 30 provinces and cities shows that the national carbon market policy has a significant impact on the regions that already have a carbon pilot, but not on the non-pilot regions. Therefore, this paper demonstrates the effectiveness of the national carbon market policy in the power industry emissions control, and also exposes the heterogeneity between regions, providing an important empirical basis for the inclusion of other energy-intensive industries.

Suggested Citation

  • Yingying Xu & Shan Zhao & Boxiao Chu & Yinglun Zhu, 2024. "Emission Reduction Effects of China’s National Carbon Market: Evidence Based on the Power Sector," Energies, MDPI, vol. 17(12), pages 1-16, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:12:p:2859-:d:1412589
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/12/2859/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/12/2859/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ma, Guangcheng & Qin, Jiahong & Zhang, Yumeng, 2023. "Does the carbon emissions trading system reduce carbon emissions by promoting two-way FDI in developing countries? Evidence from Chinese listed companies and cities," Energy Economics, Elsevier, vol. 120(C).
    2. Teixidó, Jordi & Verde, Stefano F. & Nicolli, Francesco, 2019. "The impact of the EU Emissions Trading System on low-carbon technological change: The empirical evidence," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    3. Nejat, Payam & Jomehzadeh, Fatemeh & Taheri, Mohammad Mahdi & Gohari, Mohammad & Abd. Majid, Muhd Zaimi, 2015. "A global review of energy consumption, CO2 emissions and policy in the residential sector (with an overview of the top ten CO2 emitting countries)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 843-862.
    4. Wu, Rongxin & Tan, Zhizhou & Lin, Boqiang, 2023. "Does carbon emission trading scheme really improve the CO2 emission efficiency? Evidence from China's iron and steel industry," Energy, Elsevier, vol. 277(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaolong Zeng & Qinyi Fu & Fazli Haleem & Yang Shen & Weibin Peng & Man Ji & Yilong Gong & Yilong Xu, 2024. "China’s carbon trading pilot policy, economic stability, and high-quality economic development," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Shobande, Olatunji A. & Ogbeifun, Lawrence & Tiwari, Aviral Kumar, 2024. "Extricating the impacts of emissions trading system and energy transition on carbon intensity," Applied Energy, Elsevier, vol. 357(C).
    3. Andrew Chapman & Timothy Fraser & Melanie Dennis, 2019. "Investigating Ties between Energy Policy and Social Equity Research: A Citation Network Analysis," Social Sciences, MDPI, vol. 8(5), pages 1-18, April.
    4. Krzysztof Wiśniewski & Gabriela Rutkowska & Katarzyna Jeleniewicz & Norbert Dąbkowski & Jarosław Wójt & Marek Chalecki & Tomasz Wierzbicki, 2024. "Ecologically Friendly Building Materials: A Case Study of Clay–Ash Composites for the Efficient Management of Fly Ash from the Thermal Conversion of Sewage Sludge," Sustainability, MDPI, vol. 16(9), pages 1-18, April.
    5. Agga, Ali & Abbou, Ahmed & Labbadi, Moussa & El Houm, Yassine, 2021. "Short-term self consumption PV plant power production forecasts based on hybrid CNN-LSTM, ConvLSTM models," Renewable Energy, Elsevier, vol. 177(C), pages 101-112.
    6. Anass Berouine & Radouane Ouladsine & Mohamed Bakhouya & Mohamed Essaaidi, 2020. "Towards a Real-Time Predictive Management Approach of Indoor Air Quality in Energy-Efficient Buildings," Energies, MDPI, vol. 13(12), pages 1-16, June.
    7. Grażyna Wojtkowska-Łodej & Elżbieta Jakubów, 2022. "The Role of Clean Generation Technologies in the Energy Transformation in Poland," Energies, MDPI, vol. 15(13), pages 1-18, July.
    8. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Shahbaz, Muhammad & Vinh Vo, Xuan, 2021. "How energy transition and power consumption are related in Asian economies with different income levels?," Energy, Elsevier, vol. 237(C).
    9. Jinhan Yu & Licheng Sun, 2022. "Supply Chain Emission Reduction Decisions, Considering Overconfidence under Conditions of Carbon Trading Price Volatility," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    10. Ascione, Fabrizio & De Masi, Rosa Francesca & de Rossi, Filippo & Ruggiero, Silvia & Vanoli, Giuseppe Peter, 2016. "Optimization of building envelope design for nZEBs in Mediterranean climate: Performance analysis of residential case study," Applied Energy, Elsevier, vol. 183(C), pages 938-957.
    11. Roula Inglesi-Lotz & Luis Diez del Corral Morales, 2017. "The Effect of Education on a Country’s Energy Consumption: Evidence from Developed and Developing Countries," Working Papers 201733, University of Pretoria, Department of Economics.
    12. Galatioto, A. & Ricciu, R. & Salem, T. & Kinab, E., 2019. "Energy and economic analysis on retrofit actions for Italian public historic buildings," Energy, Elsevier, vol. 176(C), pages 58-66.
    13. Milad Zeraatpisheh & Reza Arababadi & Mohsen Saffari Pour, 2018. "Economic Analysis for Residential Solar PV Systems Based on Different Demand Charge Tariffs," Energies, MDPI, vol. 11(12), pages 1-19, November.
    14. Yi, Yuxin & Zhang, Liming & Du, Lei & Sun, Helin, 2024. "Cross-regional integration of renewable energy and corporate carbon emissions: Evidence from China's cross-regional surplus renewable energy spot trading pilot," Energy Economics, Elsevier, vol. 135(C).
    15. He, Yong & Jiang, Ruipeng & Liao, Nuo, 2023. "How to promote the Chinese Certified Emission Reduction scheme in the carbon market? A study based on tripartite evolutionary game model," Energy, Elsevier, vol. 285(C).
    16. Stefano Clo' & Gianluca Iannucci & Alessandro Tampieri, 2024. "Emission permits and firms' environmental responsibility," Working Papers - Economics wp2024_06.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    17. Javier Uche & Amaya Martínez-Gracia & Ignacio Zabalza & Sergio Usón, 2024. "Renewable Energy Source (RES)-Based Polygeneration Systems for Multi-Family Houses," Sustainability, MDPI, vol. 16(3), pages 1-21, January.
    18. Ikutegbe, Charles A. & Farid, Mohammed M., 2020. "Application of phase change material foam composites in the built environment: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    19. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Kuşkaya, Sevda, 2017. "Can biomass energy be an efficient policy tool for sustainable development?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 830-845.
    20. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:12:p:2859-:d:1412589. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.