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Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?

Author

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  • Li Chen

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
    School of Economics, Shandong Women’s University, Jinan 250300, China)

  • Di Wang

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
    Think Tank of Carbon Neutral and Energy Strategy, China University of Mining and Technology, Xuzhou 221116, China)

  • Ruyi Shi

    (School of Public Policy and Management, China University of Mining and Technology, Xuzhou 221116, China
    School of Safety Engineering, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

Achieving synergistic governance of air pollution treatment and greenhouse gas emission reduction is the way for the Chinese government to achieve green transformational development. Against this background, this paper takes the implementation of the carbon emissions trading system (ETS) as the breakthrough point, using the time-varying difference-in-differences (DID) model to explore the synergistic emission reduction effect of ETS on air pollution and carbon emissions and its mechanism. The results indicate that the implementation of ETS not only significantly reduces CO 2 emissions but also synergistically achieves the reduction of air pollutants, and the synergistic emission reduction effect is mainly achieved through the synergistic reduction of SO 2 . Moreover, the emission reduction effect of ETS has economic and regional heterogeneity. On the one hand, the ETS has a more prominent carbon reduction effect in less developed provinces and cities and has a significant synergistic emission reduction effect on SO 2 and PM 2.5 ; on the other hand, the carbon emission reduction effect of ETS is more potent in Beijing, Hubei, and Shanghai, followed by Tianjin and Chongqing, and the weakest in Guangdong. In addition, through the analysis of the mediating effect, this paper finds that reducing energy consumption, optimizing the energy structure, and improving energy efficiency are effective ways for ETS to achieve synergistic emission reduction. This study provides valuable policy enlightenment for promoting the synergistic governance of pollution and carbon reduction.

Suggested Citation

  • Li Chen & Di Wang & Ruyi Shi, 2022. "Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?," IJERPH, MDPI, vol. 19(15), pages 1-21, July.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:15:p:8932-:d:869306
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    Cited by:

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    2. Tao Li & Lei Ma & Zheng Liu & Chaonan Yi & Kaitong Liang, 2023. "Dual Carbon Goal-Based Quadrilateral Evolutionary Game: Study on the New Energy Vehicle Industry in China," IJERPH, MDPI, vol. 20(4), pages 1-16, February.
    3. Riquan Yao & Yingqun Fei & Zhong Wang & Xin Yao & Sasa Yang, 2023. "The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance," IJERPH, MDPI, vol. 20(3), pages 1-16, January.
    4. Kerong Zhang & Liangyu Jiang & Yanzhi Jin & Wuyi Liu, 2022. "The Carbon Emission Characteristics and Reduction Potential in Developing Areas: Case Study from Anhui Province, China," IJERPH, MDPI, vol. 19(24), pages 1-28, December.
    5. Xiling Zhang & Xiaoqian Liu & Zeyu Zhang & Ruiyi Tang & Ting Zhang & Jian Yao, 2024. "The Synergistic Effect of the Carbon Emission Trading Scheme on Pollution and Carbon Reduction in China’s Power Industry," Sustainability, MDPI, vol. 16(19), pages 1-17, October.
    6. Kola Benson Ajeigbe & Fortune Ganda, 2024. "The Impact of Pollution and Carbon Emission Control on Financial Development, Environmental Quality, and Economic Growth: A Global Analysis," Sustainability, MDPI, vol. 16(20), pages 1-23, October.
    7. Jiang Zhu & Xiang Li & Huiming Huang & Xiangdong Yin & Jiangchun Yao & Tao Liu & Jiexuan Wu & Zhangcheng Chen, 2023. "Spatiotemporal Evolution of Carbon Emissions According to Major Function-Oriented Zones: A Case Study of Guangdong Province, China," IJERPH, MDPI, vol. 20(3), pages 1-20, January.

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