Open Access Journal Article

Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model

by Haoyuan Cheng a ,  Xiaoqian Liu b,* orcid  and  Zhenlong Xu c
a
Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu, China
b
Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China
c
Kogod Business School, American University, Washington, USA
*
Author to whom correspondence should be addressed.
EAL  2022 1(1):3; https://doi.org/10.58567/eal01010003
Received: 2 August 2022 / Accepted: 10 September 2022 / Published Online: 15 September 2022
View Full-Text
Download PDF

Abstract

China's carbon emission trading market has been formally established, but few studies have been conducted to analyze the impact of this policy on the regional urbanization level. Therefore, this paper evaluates whether the carbon trading pilot policy can enhance the regional urbanization level in China through the difference-in-differences method and analyzes the mediating role of industrial structure upgrading in this process. The results prove that the carbon trading market policy can accelerate the transformation and upgrading of industrial structure in the region so that it promotes the development of regional urbanization. Moreover, the effects of the policy are concentratedly manifested in the eastern region of China.

Keywords: Carbon emissions trading market; Difference-in-differences method; Industrial structure; Urbanization level;
Copyright: © 2022 by Cheng, Liu and Xu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). 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.

Share and Cite

ACS Style
Cheng, H.; Liu, X.; Xu, Z. Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model. Economic Analysis Letters, 2022, 1, 3. https://doi.org/10.58567/eal01010003
AMA Style
Cheng H, Liu X, Xu Z. Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model. Economic Analysis Letters; 2022, 1(1):3. https://doi.org/10.58567/eal01010003
Chicago/Turabian Style
Cheng, Haoyuan; Liu, Xiaoqian; Xu, Zhenlong 2022. "Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model" Economic Analysis Letters 1, no.1:3. https://doi.org/10.58567/eal01010003
APA style
Cheng, H., Liu, X., & Xu, Z. (2022). Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model. Economic Analysis Letters, 1(1), 3. https://doi.org/10.58567/eal01010003

Article Metrics

Article Access Statistics

References

  1. Chen, S, Shi, A N, & Wang, X. (2018). Carbon Emission Curbing Effects and Influencing Mechanisms of China's Emission Trading Scheme: The Mediating Roles of Technique Effect，Composition Effect and Allocation Effect. Journal of Cleaner Production, 264,121700, https://doi.org/10.1016/j.jclepro.2020.121700
  2. Dai, Y., Zhang, S., Zhang, X., & Long, R. (2019). Can a carbon emission trading scheme generate the Porter effect? Evidence from pilot areas in China. Science of the Total Environment, 653, 565–577, https://doi.org/10.1016/j.scitotenv.2018.10.395
  3. Greenstone, M., & Hanna, R. (2014). Environmental Regulations, Air and Water Pollution, and Infant Mortality in India. American Economic Review, 104(10), 3038–3072, https://doi.org/10.1257/aer.104.10.3038
  4. Han, D. (2022). Measuring the Level of High Quality Development of Urbanization - Empirical Evidence Based on Beijing-Tianjin-Hebei City Cluster. Statistics & Decision (04),93-97, https://doi.org/10.13546/j.cnki.tjyjc.2022.04.018.
  5. Linde, C. V. D. (1995). Toward a New Conception of the Environment-Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97–118, https://doi.org/10.1257/jep.9.4.97
  6. Montgomery, W. (1972). Markets in licenses and efficient pollution control programs. Journal of Economic Theory, 5(3), 395–418, https://doi.org/10.1016/0022-0531(72)90049-x
  7. Stavins, R. N. (2003). Experience with Market-Based Environmental Policy Instruments. Environmental Degradation and Institutional Responses, 355–435, https://doi.org/10.1016/s1574-0099(03)01014-3
  8. Wang, W D, Wang, D. & Lu, N. (2020). Research on the Impact Mechanism of Carbon Emission Trading on Low-carbon Innovation in China. China Population, Resources and Environment,41-48.
  9. Wu, Y., Qi, J., Xian, Q., & Chen, J D. (2021). The Carbon Emission Reduction Effect of China's Carbon Market – From the Perspective of the Coordination between Market Mechanism and Administrative Intervention. China Industrial Economics (08),114-132, https://doi.org/10.19581/j.cnki.ciejournal.2021.08.007.
  10. Yu, P. & Liu, X J. (2020). Research on the Effects of Carbon Trading Market Size on Environment and Economic Growth. China Soft Science (04),46-55.
  11. Zeng. S H, Li F, Weng Z X & Zong Z. (2020). A Study of the Emission Reduction Effect of Carbon Market: Empirical Evidence from Pilot Carbon Trading Regions in China. China Environmental Science, https://doi.org/10.19674/j.cnki.issn1000-6923.20211022.007.
  12. Zhang, J. (2019). Estimating the impacts of emissions trading scheme on low-carbon development. Journal of Cleaner Production, 238, 117913, https://doi.org/10.1016/j.jclepro.2019.117913