Emission Reduction Effects of China’s National Carbon Market: Evidence Based on the Power Sector

The power sector is one of the major CO[sub.2]-emitting industries in China. It is also the first key emissions control industry included in China’s national carbon trading market established in 2021. Therefore, based on the data of 30 provinces and cities in China from 2015 to 2022, this study anal...

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Bibliographic Details
Published in:Energies (Basel) 2024-06, Vol.17 (12), p.2859
Main Authors: Xu, Yingying, Zhao, Shan, Chu, Boxiao, Zhu, Yinglun
Format: Article
Language:English
Subjects:
Air pollution
Air quality management
Carbon dioxide
carbon emission
carbon market
carbon pilot
Civil aviation
Climate change
Emission standards
Emissions control
Emissions trading
Environmental impact
Greenhouse gases
Pilots
power sector
Quotas
region heterogeneity
Regions
Supply & demand
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Summary:The power sector is one of the major CO[sub.2]-emitting industries in China. It is also the first key emissions control industry included in China’s national carbon trading market established in 2021. Therefore, based on the data of 30 provinces and cities in China from 2015 to 2022, this study analyzes the impact of the national carbon market policy on the carbon emissions of the power industry based on the generalized Difference-in-Difference (DID) model. Based on the method of text analysis, this paper constructs the carbon market policy intensity index of each region and incorporates it into the DID model. Empirical analysis finds that the national carbon market policy can significantly inhibit the carbon emissions of the power industry. However, the heterogeneity analysis of 30 provinces and cities shows that the national carbon market policy has a significant impact on the regions that already have a carbon pilot, but not on the non-pilot regions. Therefore, this paper demonstrates the effectiveness of the national carbon market policy in the power industry emissions control, and also exposes the heterogeneity between regions, providing an important empirical basis for the inclusion of other energy-intensive industries.
ISSN:1996-1073
1996-1073
DOI:10.3390/en17122859