IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v20y2023i5p4537-d1087194.html
   My bibliography  Save this article

The Impact of Carbon Trading Pilot Policy on Carbon Neutrality: Empirical Evidence from Chinese Cities

Author

Listed:
  • Ke Zhang

    (School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Jing Qian

    (School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Zhenhua Zhang

    (Institute of Green Finance, Lanzhou University, Lanzhou 730000, China)

  • Shijiao Fang

    (School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

As one of a number of crucial policies for achieving the goal of “double carbon”, it is crucial to investigate the “carbon neutral” effect of the carbon trading market (CTM) in the pilot phase, which is an essential reference for the development of a future CTM. Based on panel data of 283 cities in China in the period from 2006 to 2017, this paper examines the impact of the Carbon Trading Pilot Policy (CTPP) on the achievement of the “carbon neutrality” target. The study shows that the CTPP market can promote an increase in regional net carbon sinks and further accelerate the achievement of the “carbon neutrality” goal. The findings of the study remain valid after a series of robustness tests. The mechanism analysis finds that the CTPP can help achieve the carbon neutrality target through three mechanisms: the effect on concern for the environment, the effect on urban governance, and the effect on energy production and consumption. Further analysis reveals that enterprises’ willingness and productive behavior, as well as the internal elements of the market, have a positive moderating effect on the achievement of the carbon neutrality target. In addition, there is heterogeneity among regions with different technological endowments, CTPP regions, and regions with different shares of state-owned assets in the CTM. This paper provides important practical references and empirical evidence that can help China to better achieve the “carbon neutrality” target.

Suggested Citation

  • Ke Zhang & Jing Qian & Zhenhua Zhang & Shijiao Fang, 2023. "The Impact of Carbon Trading Pilot Policy on Carbon Neutrality: Empirical Evidence from Chinese Cities," IJERPH, MDPI, vol. 20(5), pages 1-23, March.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:4537-:d:1087194
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/20/5/4537/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/20/5/4537/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Daniels, 2010. "Integrating Forest Carbon Sequestration Into a Cap-and-Trade Program to Reduce Net CO Emissions," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(4), pages 463-475.
    2. Junmin Wei & Manhong Shen, 2022. "Analysis of the Efficiency of Forest Carbon Sinks and Its Influencing Factors—Evidence from China," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    3. Zhenhua Zhang & Jingxue Zhang & Yanchao Feng, 2021. "Assessment of the Carbon Emission Reduction Effect of the Air Pollution Prevention and Control Action Plan in China," IJERPH, MDPI, vol. 18(24), pages 1-13, December.
    4. Zhenhua Zhang & Guoxing Zhang & Shunfeng Song & Bin Su, 2020. "Spatial Heterogeneity Influences of Environmental Control and Informal Regulation on Air Pollutant Emissions in China," IJERPH, MDPI, vol. 17(13), pages 1-22, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wai Ming To & Andy W. L. Chung, 2023. "Carbon-Neutrality Research in China—Trends and Emerging Themes," World, MDPI, vol. 4(3), pages 1-19, August.

    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. Shuo Feng & Ke Chen, 2022. "Impact of Environmental Information Disclosure Policy and Trade on Chinese Paper Industry Environmental Effects," IJERPH, MDPI, vol. 19(18), pages 1-20, September.
    2. Dongling Wang & Yuming Zhang & Xiaoyi Zhang, 2022. "Impact of Environmental Regulation on Regional Innovative Ability: From the Perspective of Local Government Competition," IJERPH, MDPI, vol. 20(1), pages 1-16, December.
    3. Xu, Hao & Xu, Jingxuan & Wang, Jie & Hou, Xiang, 2023. "Reduce production or increase efficiency? Hazardous air pollutants regulation, energy use, and the synergistic effect on industrial enterprises' carbon emission," Energy Economics, Elsevier, vol. 126(C).
    4. Pena-Levano, Luis & Taheripour, Farzad & Tyner, Wally, 2020. "Cost comparison of climate change mitigation options," Conference papers 333134, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Linyan Fan & Sheng Yao, 2022. "Analyst Site Visits and Corporate Environmental Information Disclosure: Evidence from China," IJERPH, MDPI, vol. 19(23), pages 1-21, December.
    6. Wu Yang & Zhang Min & Mingxing Yang & Jun Yan, 2022. "Exploration of the Implementation of Carbon Neutralization in the Field of Natural Resources under the Background of Sustainable Development—An Overview," IJERPH, MDPI, vol. 19(21), pages 1-28, October.
    7. Bruno D. V. Marino & Nahuel Bautista & Brandt Rousseaux, 2021. "Howland Forest, ME, USA: Multi-Gas Flux (CO 2 , CH 4 , N 2 O) Social Cost Product Underscores Limited Carbon Proxies," Land, MDPI, vol. 10(4), pages 1-17, April.
    8. Yinhao Wu & Shumin Yu & Xiangdong Duan, 2021. "The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect," IJERPH, MDPI, vol. 18(8), pages 1-14, April.
    9. Caihua Zhou & Xinmin Zhang, 2020. "Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China," IJERPH, MDPI, vol. 17(23), pages 1-19, December.
    10. Shi Wang & Wen Zhang & Hua Wang & Jue Wang & Mu-Jun Jiang, 2021. "How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data," IJERPH, MDPI, vol. 18(15), pages 1-18, July.
    11. Mingjun Sun & Hongjun Peng & Shuai Wang, 2018. "Cost-Sharing Mechanisms for A Wood Forest Product Supply Chain under Carbon Cap-and-Trade," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    12. Jie Gao & Wu Zhang & Chunbaixue Yang & Qun Wang & Rui Yuan & Rui Wang & Limiao Zhang & Zhijian Li & Xiaoli Luo, 2023. "A Comparative Study of China’s Carbon Neutrality Policy and International Research Keywords under the Background of Decarbonization Plans in China," Sustainability, MDPI, vol. 15(17), pages 1-23, August.
    13. Zhenhua Zhang & Guoxing Zhang & Yi Hu & Yating Jiang & Cheng Zhou & Jiahui Ma, 2023. "The evolutionary mechanism of haze collaborative governance: novel evidence from a tripartite evolutionary game model and a case study in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    14. Jianshi Wang & Yu Cheng & Chengxin Wang, 2022. "Environmental Regulation, Scientific and Technological Innovation, and Industrial Structure Upgrading in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(24), pages 1-17, December.
    15. Hongyi Liu & Tianyu He, 2023. "Sustainable Management of Land Resources: The Case of China’s Forestry Carbon Sink Mechanism," Land, MDPI, vol. 12(6), pages 1-18, June.
    16. Xiaoyi Wen & Shangjiu Wang & Shaoyong Li & Liang Cheng & Keqiang Li & Qing Zheng & Baoreng Zhang, 2024. "Impact Factors of Industrial Pollution and Carbon Reduction under the “Dual Carbon” Target: A Case Study of Urban Aggregation in the Pearl River Delta and Yangtze River Delta," Sustainability, MDPI, vol. 16(5), pages 1-16, February.
    17. Zhang, Zhenhua & Zhang, Guoxing & Su, Bin, 2022. "The spatial impacts of air pollution and socio-economic status on public health: Empirical evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    18. Yue Jiang & Yufang Wang & Rui Wang, 2022. "Coupling and Coordination Relationship between Economic and Ecologic-Environmental Developments in China’s Key State-Owned Forest Areas," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    19. Molnar, Jennifer L. & Kubiszewski, Ida, 2012. "Managing natural wealth: Research and implementation of ecosystem services in the United States and Canada," Ecosystem Services, Elsevier, vol. 2(C), pages 45-55.
    20. Pena-Levano, L. & Taheripour, F. & Tyner, W., 2018. "Cost comparison of climate change mitigation options," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277417, International Association of Agricultural Economists.

    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:jijerp:v:20:y:2023:i:5:p:4537-:d:1087194. 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.