IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i20p8808-d1496676.html
   My bibliography  Save this article

Unlocking Sustainable Growth in Urban Agglomerations: A Case Study of Carbon Emissions Trading in China

Author

Listed:
  • Yiyang Liu

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

  • Jue Wang

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

Abstract

Amid global efforts to combat climate change, China’s targets for reaching carbon peak and achieving carbon neutrality are critical for enhancing environmental governance and promoting sustainable economic growth. This study investigates the impacts of experimental carbon emissions trading markets on industrial coordination within a typical inland urban cluster in China, employing innovative regression control methods (RCM) to analyze changes in regional industrial dynamics. The analysis reveals significant findings: firstly, the establishment of carbon emissions trading markets has tangibly influenced industrial coordination across the economic zone; and secondly, while industrial coordination within the manufacturing sectors has seen a substantial increase, coordination in the productive service sectors remains relatively unchanged. These outcomes highlight the differential effects of carbon market policies on various sectors and underscore the importance of targeted interventions in achieving broader environmental and economic objectives.

Suggested Citation

  • Yiyang Liu & Jue Wang, 2024. "Unlocking Sustainable Growth in Urban Agglomerations: A Case Study of Carbon Emissions Trading in China," Sustainability, MDPI, vol. 16(20), pages 1-24, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8808-:d:1496676
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/20/8808/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/20/8808/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Branger, Frédéric & Quirion, Philippe, 2014. "Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies," Ecological Economics, Elsevier, vol. 99(C), pages 29-39.
    2. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
    3. Qin Yang & Huan Dan & Tingting Ni & Pan Zhao & Junyi Wei & Gang Wang, 2023. "Research on the Coupling and Coordinated Development of the Tourism Industry and Regional Economy in the Economic Circle of the Sichuan–Chongqing Region in Southwest China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    4. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    5. Neffke, Frank M.H. & Otto, Anne & Weyh, Antje, 2017. "Inter-industry labor flows," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 275-292.
    6. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    7. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    8. Li, Kathleen T. & Bell, David R., 2017. "Estimation of average treatment effects with panel data: Asymptotic theory and implementation," Journal of Econometrics, Elsevier, vol. 197(1), pages 65-75.
    9. Felder Stefan & Rutherford Thomas F., 1993. "Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 162-176, September.
    10. Evert Meijers & Martijn Burger & Edward L. Glaeser & Giacomo A. M. Ponzetto & Yimei Zou, 2016. "Urban networks: Connecting markets, people, and ideas," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 17-59, March.
    11. Cheng Hsiao & H. Steve Ching & Shui Ki Wan, 2012. "A Panel Data Approach For Program Evaluation: Measuring The Benefits Of Political And Economic Integration Of Hong Kong With Mainland China," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(5), pages 705-740, August.
    12. E. Glen Weyl & Michal Fabinger, 2013. "Pass-Through as an Economic Tool: Principles of Incidence under Imperfect Competition," Journal of Political Economy, University of Chicago Press, vol. 121(3), pages 528-583.
    13. 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).
    14. Song, Malin & Zheng, Huanyu & Shen, Zhiyang, 2023. "Whether the carbon emissions trading system improves energy efficiency – Empirical testing based on China's provincial panel data," Energy, Elsevier, vol. 275(C).
    15. Gilbert E. Metcalf, 2019. "On the Economics of a Carbon Tax for the United States," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 405-484.
    16. Evert Meijers & Martijn Burger & Evert J. Meijers & Martijn J. Burger & Marloes M. Hoogerbrugge, 2016. "Borrowing size in networks of cities: City size, network connectivity and metropolitan functions in Europe," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 181-198, March.
    17. Zakeri, Atefe & Dehghanian, Farzad & Fahimnia, Behnam & Sarkis, Joseph, 2015. "Carbon pricing versus emissions trading: A supply chain planning perspective," International Journal of Production Economics, Elsevier, vol. 164(C), pages 197-205.
    18. Zhang, Wei & Li, Guoxiang & Guo, Fanyong, 2022. "Does carbon emissions trading promote green technology innovation in China?," Applied Energy, Elsevier, vol. 315(C).
    19. Xuefeng Zheng & Xiufan Zhang & Decheng Fan, 2023. "Research on the Coordinated Development of Innovation Ability and Regional Integration in Guangdong–Hong Kong–Macao Greater Bay Area," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    20. Shashanka Bhide, 2019. "Production Sectors and Regions in Macroeconometric Models of India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 711-725, December.
    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. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    2. Hémous, David & Dechezleprêtre, Antoine & Olsen, Morten & Zanella, carlo, 2019. "Automating Labor: Evidence from Firm-level Patent Data," CEPR Discussion Papers 14249, C.E.P.R. Discussion Papers.
    3. Frattini, Federico Fabio & Vona, Francesco & Bontadini, Filippo, 2024. "Does Green Re-industrialization Pay off? Impacts on Employment, Wages and Productivity," FEEM Working Papers 344791, Fondazione Eni Enrico Mattei (FEEM).
    4. Danzer, Alexander M. & Feuerbaum, Carsten & Gaessler, Fabian, 2024. "Labor supply and automation innovation: Evidence from an allocation policy," Journal of Public Economics, Elsevier, vol. 235(C).
    5. Lei Zheng & Akira Omori & Jin Cao & Xuemeng Guo, 2023. "Environmental Regulation and Corporate Environmental Performance: Evidence from Chinese Carbon Emission Trading Pilot," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    6. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    7. Echevarría, Cruz A. & Hasancebi, Serhat & García-Enríquez, Javier, 2022. "Economic Effects of Macao’s Integration with Mainland China: A Causal Inference Study," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 179-215.
    8. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    9. Battisti, Michele & Gatto, Massimo Del & Parmeter, Christopher F., 2022. "Skill-biased technical change and labor market inefficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    10. Moritz Bohland & Sebastian Schwenen, 2020. "Technology Policy and Market Structure: Evidence from the Power Sector," Discussion Papers of DIW Berlin 1856, DIW Berlin, German Institute for Economic Research.
    11. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Economic Impacts of Thailand’s Biofuel Subsidy Reallocation Using a Dynamic Computable General Equilibrium (CGE) Model," Energies, MDPI, vol. 14(8), pages 1-21, April.
    12. Zhangsheng Liu & Liuqingqing Yang & Liqin Fan, 2021. "Induced Effect of Environmental Regulation on Green Innovation: Evidence from the Increasing-Block Pricing Scheme," IJERPH, MDPI, vol. 18(5), pages 1-15, March.
    13. Bretschger, Lucas & Lechthaler, Filippo & Rausch, Sebastian & Zhang, Lin, 2017. "Knowledge diffusion, endogenous growth, and the costs of global climate policy," European Economic Review, Elsevier, vol. 93(C), pages 47-72.
    14. repec:spo:wpmain:info:hdl:2441/2qaasbmk6u8cj8maoa30ls1roi is not listed on IDEAS
    15. Dennis Shen & Peng Ding & Jasjeet Sekhon & Bin Yu, 2022. "Same Root Different Leaves: Time Series and Cross-Sectional Methods in Panel Data," Papers 2207.14481, arXiv.org, revised Oct 2022.
    16. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    17. Christoph Böhringer & André Müller & Jan Schneider, 2015. "Carbon Tariffs Revisited," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 629-672.
    18. Nelson, Kelly P. & Parton, Lee C. & Brown, Zachary S., 2022. "Biofuels policy and innovation impacts: Evidence from biofuels and agricultural patent indicators," Energy Policy, Elsevier, vol. 162(C).
    19. Xiaoqi Li & Dingfei Guo & Chao Feng, 2022. "The Carbon Emissions Trading Policy of China: Does It Really Promote the Enterprises’ Green Technology Innovations?," IJERPH, MDPI, vol. 19(21), pages 1-15, November.
    20. Lionel Nesta & Elena Verdolini & Francesco Vona, 2018. "Threshold policy effects and directed technical change in Energy Innovation," SciencePo Working papers Main hal-03475570, HAL.
    21. Mealy, Penny & Teytelboym, Alexander, 2017. "Economic Complexity and the Green Economy," INET Oxford Working Papers 2018-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised Feb 2019.

    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:jsusta:v:16:y:2024:i:20:p:8808-:d:1496676. 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.