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This paper examined the economic impacts of China's emissions trading system (ETS), implemented in 2013, in terms of gross domestic product (GDP) and per capita GDP. The methodology drew on a difference-in-differences (DID) method using dynamic panel data for 30 provincial regions. The estimation results show that implementing an ETS policy has statistically significant negative effects on economic growth. When considering the additional control variables, these effects are still statistically significant. Furthermore, these negative impacts increase over time with respect to both GDP and per capita GDP. The counterfactual tests confirm the robustness of our DID estimation results. The specific influence mechanism of China's ETS policy was finally discussed. Our findings provide a quantitative decision-making support for popularizing ETS policy in China. Based on our DID model, empirical investigations of the ETS policy, especially concerning economic growth in other regions would produce prolific contributions to the literature. [ABSTRACT FROM AUTHOR]

There has been increasing interest in whether low carbon cities developed under Chinese institutional arrangements can facilitate a transformative change. Unlike their western counterparts, Chinese low carbon cities are mainly developed through a top-down approach characterized by strong regulatory influences and centrally-led pilots. Inspired by insights from institutional theory, this paper assessed the progress that has been made in Chinese low carbon cities through understanding urban actors' willingness and capacity to pursue more radical changes. Based on semi-structured interviews and documentary analysis, it is found that due to the low recognition of the intrinsic value of carbon reduction, low carbon transition was largely represented as a practical discussion around national binding targets and local economic development. Following this, it is suggested that any attempt to speed up urban low carbon transition should consider strengthening incentive structures for cultural or paradigm change. [ABSTRACT FROM AUTHOR]