Browse
Submit Data
Databases
API
Help

Dataset Information

18 Views

0 Connections

0 Citations

0 Reanalyses

0 Downloads

Omics score: 0

Low-carbon innovation induced by emissions trading in China.

ABSTRACT: Emissions trading scheme (ETS) has been adopted by an increasing number of countries and regions for carbon mitigation, but its actual effect depends on specific program design and institutional context. Before launching the world largest ETS, China experimented with seven independent regional pilots, whose effects are only indirectly explored. Here we provide firm-level evidence of the innovation effect directly from China's pilot emissions trading, based on latest patenting information and a quasi-experimental design. China's pilots increase low-carbon innovation of ETS firms by 5-10% without crowding out their other technology innovation. The increase from ETS firms accounts for about 1% increase of the regional low-carbon patents, while a similar increase from large non-ETS firms is also induced by the ETS. Most importantly, the effect is not associated with permit price, auction, or firm characteristics, but is driven by mass-based allowance allocation. A rate-based approach, however, is adopted by China's national market.

SUBMITTER: Zhu J

PROVIDER: S-EPMC6733790 | biostudies-literature | 2019 Sep

REPOSITORIES: biostudies-literature

ACCESS DATA

Json Xml

Publications

Low-carbon innovation induced by emissions trading in China.

Zhu Junming J Fan Yichun Y Deng Xinghua X Xue Lan L

Nature communications 20190909 1

Emissions trading scheme (ETS) has been adopted by an increasing number of countries and regions for carbon mitigation, but its actual effect depends on specific program design and institutional context. Before launching the world largest ETS, China experimented with seven independent regional pilots, whose effects are only indirectly explored. Here we provide firm-level evidence of the innovation effect directly from China's pilot emissions trading, based on latest patenting information and a q ...[more]

PMID: 31501437

Similar Datasets

The European Union Emissions Trading System reduced CO2 emissions despite low prices.

Project description:International carbon markets are an appealing and increasingly popular tool to regulate carbon emissions. By putting a price on carbon, carbon markets reshape incentives faced by firms and reduce the value of emissions. How effective are carbon markets? Observers have tended to infer their effectiveness from market prices. The general belief is that a carbon market needs a high price in order to reduce emissions. As a result, many observers remain skeptical of initiatives such as the European Union Emissions Trading System (EU ETS), whose price remained low (compared to the social cost of carbon). In this paper, we assess whether the EU ETS reduced [Formula: see text] emissions despite low prices. We motivate our study by documenting that a carbon market can be effective if it is a credible institution that can plausibly become more stringent in the future. In such a case, firms might cut emissions even though market prices are low. In fact, low prices can be a signal that the demand for carbon permits weakens. Thus, low prices are compatible with successful carbon markets. To assess whether the EU ETS reduced carbon emissions even as permits were cheap, we estimate counterfactual carbon emissions using an original sectoral emissions dataset. We find that the EU ETS saved about 1.2 billion tons of [Formula: see text] between 2008 and 2016 (3.8%) relative to a world without carbon markets, or almost half of what EU governments promised to reduce under their Kyoto Protocol commitments. Emission reductions in sectors covered under the EU ETS were higher.

| S-EPMC7183178 | biostudies-literature

Practical effects of carbon emissions trading system on energy efficiency.

Project description:The carbon emissions trading system (CETS) is a helpful policy instrument for separating carbon emissions from economic expansion, and it significantly impacts energy efficiency (EE). This study uses 30 Chinese provinces from 2007 to 2020 as its research samples, and classifies energy efficiency into single-factor energy efficiency (SFE) and total-factor energy efficiency (TFE), using the difference-in-differences model to examine the effect and mechanism of the CETS on EE. As an additional tool to assess the efficacy of the CETS, the corresponding evolution of the rebound effect of energy-related carbon emissions (RECE) is also calculated. This study shows that the CETS can significantly improve EE in China's pilot provinces. The influence mechanism indicates that the effect of the CETS on EE is influenced by the level of government governance, green innovation, and industrial structure optimization. Further study finds that after the CETS was carried out, the RECE in pilot provinces was higher than that in non-pilot provinces, and 31.4% of carbon emissions reduced by EE improvement rebounded. Therefore, the CETS has yet to realize its full carbon reduction potential. The study offers specific policy proposals for the enhancement of China's CETS in light of the aforementioned findings.

| S-EPMC10761875 | biostudies-literature

Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China

Project description:The low-carbon city pilot policy is an environmental regulation aimed at reducing carbon emissions at the municipal level. Previous research mostly focused on evaluating its environmental performance and discovered it could enhance pilot cities’ low-carbon innovation. However, the effects of the low-carbon city pilot policy on firm-level low-carbon innovation and their economic impact have yet to be investigated. This research uses a sample of Chinese A-share listed firms and the difference-in-difference method to examine the effect of the low-carbon city pilot policy on firms’ low-carbon innovation. The baseline regression showed that the low-carbon city pilot policy could greatly encourage low-carbon innovation among firms in pilot cities. The mechanism analysis demonstrated that this improvement effect is attained by easing these firms’ financing constraints. According to the heterogeneity analysis, we discovered that state-owned firms and firms situated in pilot zones with municipal secretaries who have larger promotion incentives are more susceptible to this policy. Additionally, the research on this policy’s economic impact revealed that, following its adoption, the market value and comparative advantages of the firms in the pilot areas also increased. The findings of this study have implications for the enhancement and national expansion of low-carbon policies adopted at the city level.

| S-EPMC9833526 | biostudies-literature

Evolutionary game analysis of low-carbon technology innovation diffusion under PPP mode in China.

Project description:With the Public-Private Partnership (PPP) mode playing an increasingly important role in the investment of infrastructure, promoting the diffusion of low-carbon technology innovation in PPP projects not only helps to reduce the carbon emissions of infrastructure, but also plays an important demonstration role in the low-carbon transformation of construction industry. In order to clarify the evolutionary mechanism of low-carbon technology innovation diffusion among stakeholders under the unique payment mechanism of PPP projects in China, the paper builds two different evolutionary game models respectively under government payment mechanism and consumer payment mechanism based on evolutionary game theory. The evolutionary relationship between the choice of behavior strategies and the change of influencing factors under different payment mechanisms are analyzed by numerical simulation. It is found that under government payment mechanism, the regulation cost of government to promote low-carbon technology innovation and the punishment of the superior regulatory authority for non-regulation behavior are the important factors affecting government's behavioral strategies. The low-carbon technology innovation cost of social capital and the intensity of government subsidy and punishment are the main factors affecting social capital's behavioral strategies; Under consumer payment mechanism, consumer becomes the ultimate payer of low-carbon products, and the income they get from purchasing low-carbon products and the subsidy provided by the government become the main factors determining consumer's behavioral strategies. Finally, from the perspective of government, social capital and consumer, countermeasures and management implications are put forward to effectively promote the diffusion of low-carbon technology innovation under different payment mechanism in PPP projects.

| S-EPMC9794064 | biostudies-literature

The effect of carbon price on low carbon innovation.

Project description:Whilst many governments have implemented carbon pricing to provide firms with a greater financial incentive to develop low carbon technologies, the effect of the carbon price on the level of low carbon innovation remains unclear. In this study we develop an empirically grounded model of firms' carbon price expectations and innovation processes. We use this model to show that a 1 USD increase in the expected future carbon price is associated with a 1.4% increase in the level of patenting in low carbon technologies, based on data for countries participating in the EU emissions trading system. We also find that firms gradually update their expectations of the future carbon price in response to recent price changes. Our findings indicate that higher carbon prices provide an effective incentive for low carbon innovation.

| S-EPMC10261144 | biostudies-literature

Influence of carbon emission trading policy on residents' health in China.

Project description:Residents' health is the basic condition for economic and social development. At present, China's environmental pollution problem is becoming increasingly serious, which not only hinders sustainable economic and social development, but also poses a major threat to public health. Therefore, based on the carbon emissions trading policy implemented in China, this paper explores this policy's impact on residents' health using the DID model and illustrates the moderating effect of environmental pollution. The results show that (1) carbon emissions trading policies can promote the improvement of residents' health; (2) the effect is stronger for western regions and provinces with smaller population sizes after taking control variables into consideration; and (3) environmental pollution has a significant moderating effect on the relationship between carbon emissions trading and residents' health. This research serves as an important reference for expanding the scope of the policy pilot, reducing pollutant emissions, and improving the health of the population.

| S-EPMC9533118 | biostudies-literature

Time-varying spillovers among pilot carbon emission trading markets in China.

Project description:Clarifying the time-varying spillovers among pilot carbon emission permit trading markets in China is an important foundation for building the national carbon emission trading market. We calculate the dynamic spillover of carbon price return among the pilot carbon emission permit trading markets in China with the time-varying connectedness approach. The dataset is constructed from transaction data from seven pilot carbon markets in China during the period of June 23, 2014, to December 31, 2020. The quantitative analysis suggests that (i) Beijing and Chongqing carbon emission trading markets are the main spillover markets of carbon price returns, with strong pricing power, while the Guangdong and Tianjin markets are the main receivers of the price return spillover in other pilot carbon emission trading markets. (ii) The spillover effect among China's carbon markets has a strong policy orientation. The improvement and development of the carbon market driven by macroeconomic regulation and control policies can effectively improve the spillover ability of the carbon market, and the market trading activity, namely the volatility of the carbon price return rate, can amplify the spillover ability of the carbon market in the short term. (iii) There exist three types of price return spillover among China's pilot carbon emission trading markets, including central divergence, one-way chain transmission, and circular spillover. Along with the improvement of market operation efficiency, the central divergent type of spillover shifts to the pattern of circular spillover. It is necessary for the government to improve market efficiency and ensure the coordinated development of China's pilot carbon emission trading market and national carbon emission trading market.

| S-EPMC8961101 | biostudies-literature

Mutual reinforcement of land-based carbon dioxide removal and international emissions trading in deep decarbonization scenarios

Project description: Not available

| S-EPMC11339383 | biostudies-literature

Does California's Low Carbon Fuel Standards reduce carbon dioxide emissions?

Project description:The Low Carbon Fuel Standards (LCFS) represents a new policy approach designed to reduce carbon dioxide emissions by applying standards to all stages of motor fuel production. We use the synthetic control and difference-in-differences econometric methods, and Lasso machine learning to analyze the effect of the LCFS on emissions in California's transportation sector. The three different techniques provide robust evidence that the LCFS reduced carbon dioxide emissions in California's transportation sector by around 10%. Furthermore, our calculations show that improved air quality, due to the application of the LCFS, may have benefited California in the magnitude of hundreds of millions of dollars through an increase in worker's productivity.

| S-EPMC6141099 | biostudies-literature

Reduction Effect of Carbon Emission Trading Policy in Decreasing PM2.5 Concentrations in China.

Project description:Carbon emissions trading is a market-based tool for solving environmental issues. This study used a difference-in-differences (DID) approach to estimate China's carbon trading pilots to reduce PM2.5 concentrations. The results of this quasi-natural experiment show that the carbon trading policy effectively reduces PM2.5 by 2.7 μg/m3. We used a propensity score matching (PSM-DID) method to minimize selection bias to construct a treatment and a control group. The results show the policy effect is robust, with a PM2.5 concentration reduction of 2.6 μg/m3. Furthermore, we employed a series of robustness checks to support our findings, which notably indicate that the effect of carbon trading on reducing PM2.5 differs across regions over the years. The western region of China tends to be the most easily affected region, and the early years of carbon trading show slightly greater reduction effects. Our findings provide valuable policy implications for establishing and promoting carbon trading in China and other countries.

| S-EPMC9738372 | biostudies-literature

OmicsDI is part of the ELIXIR infrastructure

OmicsDI is an Elixir interoperability service. Learn more ›

Tweets

OmicsDI Databases

PRIDE
PeptideAtlas
MassIVE
JPOST Repository
Physiome Model Repository

EGA
EVA
ENA
LINCS
PAXDB
Cell Collective

MetaboLights
Metabolomics Workbench
MetabolomeExpress
GNPS
BioModels
FAIRDOMHub

ArrayExpress
dbGaP
ExpressionAtlas
GEO
NODE

Information

Databases
Help
API
Contact us
Code on GitHub
Terms of use
Submit Data