The Impact of Carbon Emission Trading Policy on Regional Total Factor Productivity Provisionally Accepted
- 1Capital University of Economics and Business, China
- 2National Academy of Innovation Strategy, China Association for Science and Technology, China
The DEA-Malmquist index approach is used to measure the growth rate of regional total factor productivity. The panel data of 30 regions in China from 2005 to 2020 are used to examine the impact of carbon emission trading policy on regional total factor productivity. The findings demonstrate that, while the carbon emissions trading pilot policy can enhance total factor productivity (TFP), its impact varies across regions. Notably, the policy fosters TFP growth in Beijing and Tianjin but hampers it in Hubei and Guangdong provinces, signifying regional heterogeneity in its effects. These results remain robust even after conducting placebo tests and DID model. Furthermore, the mechanism study reveals that the carbon emissions trading pilot policy affects total factor productivity through pure technical efficiency and scale effects. Given the more stringent environmental regulations brought by the "carbon neutrality" goal, understanding the impact of carbon emissions trading policies on total factor productivity lays the groundwork for establishing a national carbon emissions trading market. This promotes sustainable economic development by helping to achieve a win-win situation between environmental protection and economic growth.
Keywords: Carbon emissions trading policy, total factor productivity, Synthetic control method, Pure technical efficiency, Scale effects
Received: 03 Apr 2024;
Accepted: 09 May 2024.
Copyright: © 2024 Meng and Wen. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Mx. Xin Wen, National Academy of Innovation Strategy, China Association for Science and Technology, Beijing, China