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Global environmental problems are worsening. Among various regulatory measures, market-oriented approaches are most favored by governments worldwide. Using provincial panel data from 2004 to 2020, a multi-period DID model was hereby constructed to empirically study the pollution reduction effects of the pilot policy for carbon emissions trading in China. Findings of this paper could be listed as follows: (1) The pilot policy has achieved notable reductions in waste gas and solid waste, although its effect on wastewater pollutants has been less pronounced; (2) Pollution reduction in the pilot regions can be achieved by optimizing the energy consumption structure; (3) Significant variations in pollution reduction effects are observed between the Northern and Southern pilot regions, with notably stronger policy effects in the north across various pollutants compared to the south. Overall, this paper offers pertinent policy recommendations to aid the Chinese government in enhancing its carbon market. [ABSTRACT FROM AUTHOR]

Under the goal of "carbon peaking" and "carbon neutrality" in China, it is significant to explore whether green finance contributes to carbon emission reduction. Therefore, based on the panel data of 30 provinces in China from 2005 to 2020, this paper empirically examines the impact of green finance on carbon emissions and its mechanism using the FE model, GMM model, DID, and the mediating effect model. Results find that green finance can significantly promote carbon emissions reduction, and this promotion remains still after robustness tests. The heterogeneity analysis shows that green finance's carbon emission reduction effect is more significant in developed and western regions. Moreover, the results of policy intervention effects confirm that green finance reform and innovation pilot zones (GFRIs) for carbon emission reduction are more pronounced than in other regions. Finally, the mediating effects reveal that industrial structure and green innovation are the core transmission channels through which green finance influences carbon emission reduction. These findings offer meaningful implications for formulating reasonable carbon emission reduction plans and determining the future development direction of green finance. [ABSTRACT FROM AUTHOR]

Smart cities have the potential to achieve the goal of carbon neutrality, but empirical evidence regarding the effect of smart city policies on carbon emissions is limited. In this novel study, we investigate the effect of China's smart city policy on household daily consumption and carbon emissions. The empirical analysis is based on a difference-in-differences regression, in which the dependent variable is the household indirect carbon emissions estimated based on the consumer lifestyle approach and a dataset of 201 Chinese cities between 2010 and 2018. The main findings are as follows. First, the smart city policy significantly reduces household indirect carbon emissions, and the reduction is greater when the policy pilot region includes the whole city rather than only certain subareas. Second, the mechanisms through which the smart city influences household indirect carbon emissions are mainly the reductions in transportation- and education-related emissions resulting from developments in smart technology. Third, the above effects last for years, and they are regionally heterogeneous and more significant in the cities of eastern China. The findings in this paper suggest that smart cities can potentially achieve city sustainability by promoting greener consumption behavior. [ABSTRACT FROM AUTHOR]

This paper examines the risk spillover effect between the carbon market and the stock market in China and the role of corporate social responsibility (CSR) on this effect. Employing Beijing, Hubei, and Guangdong carbon markets, we apply time-domain and frequency-domain spillover approaches and find that during the Chinese stock market crisis in 2015, risk spillovers from the stock market to the carbon market were more pronounced. Additionally, CSR firms are more dominant as information transmitters than those non-CSR (NCSR) firms in the carbon market. However, plausibly, due to the infancy of carbon trading, our results show that the level of connectedness between the carbon market and the stock market in China is relatively low. [ABSTRACT FROM AUTHOR]

Emissions trading system (ETS) is a cost-effective way towards achieving the carbon neutrality goal. Based on the gaps in the research on carbon allowance allocation vis-à-vis the carbon neutrality target, this study examines how to allocate carbon allowances equitably and effectively among Chinese provinces. Different from the previous research that mainly considers responsibility, ability, and potential of equity dimensions, this paper proposes a composite indicator allocation approach based on the equity of history, demand, contribution, and guarantee, and it also employs the entropy method and expert survey method to obtain the indicator weight values in different scenarios. Results show that the carbon allowances of some provinces, such as the forest-rich province of Yunnan, vary significantly in five scenarios, but little differences are observed for some provinces, such as the high historical emissions province of Shanxi. More provinces achieve data envelopment analysis efficiency in the preferred scenario. Compared with the objective scenario, the required emission reduction in the preferred gross domestic product (GDP) scenario is 231 million tonnes less, and the emission reduction cost is 190 billion yuan less. It is suggested that the Chinese government should adopt the allocation scheme in preference for the GDP scenario. [ABSTRACT FROM AUTHOR]