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The world is facing the challenges of climate change and energy structure adjustments. The role of digital finance, a new branch of business that combines digital technology and traditional financial products, in reducing global carbon emissions needs to be studied. This paper uses panel data on 280 cities in China from 2011 to 2019 to empirically examine the efficacy of digital finance for governing carbon emission reductions and the mechanism by which it does so. The results show that (1) digital finance can facilitate carbon emission reductions and help reduce carbon emission intensity within regions; (2) digital finance helps promote the rational allocation of resources and alleviates factor distortions by encouraging firms to rationally use their own factor endowments so as to reduce carbon emission intensity, which holds robustly after considering the endogenous issues such as possibly omitting variables and collinearity; and (3) differences in geographical location, the vitality of regional innovation and entrepreneurship, regional willingness to protect the environment, and environmental protection levels lead to heterogeneity in the effect of digital finance on carbon emission intensity. Therefore, it is necessary to vigorously develop digital finance as a long-term tool for carbon governance. [ABSTRACT FROM AUTHOR]

To achieve carbon peak targets, realize carbon neutrality vision, and tackle global climate change, China must improve the carbon emission performance at the city level. Based on the carbon emission performance of 191 prefecture-level cities in China from 1997 to 2017, this paper analyses the evolution characteristics of urban carbon emission performance from three aspects: the overall spatial and temporal evolution, the differences according to both region and city size, and the differences among clusters categorized by carbon emission performance at the city level. This paper also reveals the impact of the social and economic transition on China's carbon emission performance. The results show that: (1) The overall level of carbon emission performance of Chinese cities is low, and there is a downward trend during the study period. The differences in carbon emission performance among cities are convergent, but there is a wide gap between high and low values. (2) The carbon emission performance of cities in eastern coastal areas is higher than that in non-coastal areas cities. Large urban agglomerations and economically developed regions, such as provincial capitals, are the agglomeration areas of high urban carbon emission performance values. (3) The carbon emission performance level of cities with similar sizes will converge. At the same time, such changes will enhance the differences among carbon emission performances at the city level within the same region. (4) Cities that belong to high urban carbon emission performance clusters are mainly distributed in the eastern region. Such cities are classified into large cities, supercities, and megacities. Compared with low urban carbon emission performance clusters, cities in high urban carbon emission performance clusters show a higher proportion in the medium-high level and high level of carbon emission performance. Moreover, cities in high urban carbon emission performance clusters are more likely to improve theirurban carbon emission performance. (5) The economic agglomeration effect, industrial structure adjustment and carbon intensity reduction have a significant impact on improving urban carbon emission performance. Population agglomeration has an incremental effect, and the anticipated benefits of environmental regulation have yet to be fully realized. The impacts of different clusters and different regions are variable. Finally, this paper advances policy enlightenment according to its research findings. [ABSTRACT FROM AUTHOR]

This paper presents an in-depth analysis of the Marginal Abatement Cost Curve (MACC) for CO2 of China's industrial sector. Leveraging comprehensive firm-level panel data spanning the period 2011–2015, we employ a parameterized directional output distance function to estimate the shadow price of CO2. By doing so, we derive the marginal abatement cost for individual firms across different years, which provides crucial insights into two fundamental aspects: first, the variation in shadow prices as indicators of the economic efficiency of existing climate policies; and second, the carbon price levels necessary to achieve CO2 mitigation targets in the future. Furthermore, we conduct scenario simulations to assess the potential industrial output loss resulting from forthcoming carbon policies, such as the European Union's Carbon Border Adjustment Mechanism (CBAM). Our findings underscore the necessity for a considerably higher tax rate to stimulate pollution reduction in order to meet the desired emission targets. [ABSTRACT FROM AUTHOR]

Carbon intensity is one of the key indexes in the process of decarbonizing development. Therefore, our paper investigates possible pathways of China's carbon intensity to 2050 depending on China's development stage and trends. We first investigate the major influence factors of carbon intensity based on the Kaya identity, and then forecast China's future carbon intensity with a generalized regression neural network model coupled with a scenario analysis with official data from 1978 to 2020. Our results show that: (1) China's carbon intensity will decrease under the benchmark growth, high growth, and low growth scenarios but vary by amounts and rates of decrease due to the settings of the influences factors; (2) China is able to achieve the reduction targets of 2025 under the benchmark growth and low growth scenario, but cannot achieve the target under the high grow scenario. However, China can meet its reduction target by 2030 in all scenarios. (3) The Chinese government should aim to reduce carbon intensity by 23–25%, 40–44% and 64–70% by 2035, 2040 and 2050 as compared to the level in 2030. Therefore, China should keep promoting the deep low-carbon transformation of economic development model, and realize high-quality economic development in order to achieve these objectives. [ABSTRACT FROM AUTHOR]

China's wide-ranging circular economy (CE) efforts have been studied multiple times from a range of perspectives. Synthesizing the relevant literature, this paper provides a critical reflection on the transition to a CE in China. Key factors for China's success in shifting towards a CE are seen in multi-level indicators and upscaling niches. This paper makes a novel contribution on limitations to progress, based on emerging evidence on CE projects that fail to sustain. Enriched by experts feedback, this paper critically addresses future challenges to a deep transition resulting from implementation gaps between early majorities and mass markets and coordination challenges arising through regional and sectoral differences. In light of China's commitments to climate neutrality by 2060, such challenges are considered serious. Based on feasible policy learning, the paper however proposes synergies between the CE and decarbonisation driven by efficiency improvements, comprehensive core indicators, upscaling and urban policies as trigger for deeper transformations. Finally the paper undertakes broader reflections and an outlook on evidence-orientated policy learning for a CE and decarbonisation in China. [ABSTRACT FROM AUTHOR]

History instructs us that electrical power can be decarbonized in less than a dozen years with combinations of renewable and nuclear energy, but exaggerated fears of the latter have made it too costly and unpopular to develop and deploy in much of the world, allowing Russia and China to capture the nuclear export market. If humanity is genuinely serious about rapid decarbonization to avoid the worst health and climate risks, it will need to take steps to rapidly improve and deploy both nuclear and renewable energy. [ABSTRACT FROM AUTHOR]

Following a sustainable development pathway designed to keep warming below 2 °C will benefit human health. We quantify premature deaths attributable to fine particulate matter (PM2.5) air pollution and heat exposures for China, South Asia, and the United States using projections from multiple climate models under high-and low-emission scenarios. Projected changes in premature deaths are typically dominated by population aging, primarily reflecting increased longevity leading to greater sensitivity to environmental risks. Changes in PM2.5 exposure typically have small impacts on premature deaths under a high-emission scenario but provide substantial benefits under a low-emission scenario. PM2.5-attributable deaths increase in South Asia throughout the century under both scenarios but shift to decreases by late century in China, and US values decrease throughout the century. In contrast, heat exposure increases under both scenarios and combines with population aging to drive projected increases in deaths in all countries. Despite population aging, combined PM2.5-and heat-related deaths decrease under the low-emission scenario by ~2.4 million per year by midcentury and ~2.9 million by century's end, with ~3% and ~21% of these reductions from heat, respectively. Intermodel variations in exposure projections generally lead to uncertainties of <40% except for US and China heat impacts. Health benefits of low emissions are larger from reduced heat exposure than improved air quality by the late 2090s in the United States. In contrast, in South and East Asia, the PM2.5-related benefits are largest throughout the century, and their valuation exceeds the cost of decarbonization, especially in China, over the next 30 y. [ABSTRACT FROM AUTHOR]

Alleviating global climate change requires the development and adoption of green innovation. This study compares the impact of cooperative and independent green innovation on carbon reduction based on the panel data covering 252 cities in China from 2003 to 2019. We examine the heterogeneous impacts of cooperative green innovation across units, and explain the transmission mechanism. The two-way fixed effects model and interaction model are adopted. Results show that: (1) Cooperative green innovation can reduce carbon emissions more effectively than independent green innovation. A 1% increase in cooperative green patents (inventions) will reduce carbon emissions by 0.023% (0.037%), while independent green patents or inventions play a weak role. (2) For research and development (R&D) partners, firms' cooperative green innovation has a stronger positive effect on carbon reduction than research organizations. The carbon reduction effect of cooperative green innovation is better for listed firms and universities. (3) Mechanism analysis shows cooperative green innovation can reduce carbon emissions by improving the industrial structure and decreasing energy intensity. These effects are stronger when cities have more talent, funds and higher marketability. (4) We also find that listed firms' cooperative green inventions with a ten-year lag can still reduce carbon emissions effectively. Cooperative green innovation is conducive to carbon reduction among eastern and central cities of China. [Display omitted] • This paper explores the impact of green innovation on carbon reduction from the new perspective of cooperation. • Cooperative green innovation is more effective than independent green innovation in carbon reduction. • Cooperative green innovation of listed firms and universities is more conducive to carbon reduction. • Cooperative green innovation can optimize the industrial structure and decrease energy intensity for better carbon reduction. • Cooperative green innovation with more talent, funds and market has better carbon reduction effect. [ABSTRACT FROM AUTHOR]

With growing global concern for mainstreaming of environmental protection measures, the promotion of climate change and sustainable development policies, the international community, represented by international organizations, research institutions, and world‐wide businesses, has focused on green finance. Existing research on green finance in the context of environmental trends has been reviewed in terms of the products and determinants of green finance. This study aims to assess the impact of green finance on the decarbonization of economies in the context of a review of current and potential problems and prospects. Based on the examples of the People's Republic of China, the Russian Federation, and the United States of America, the study suggests that today green finance has not yet demonstrated a tangible effect in these countries. Based on the results of the study, it can be argued that in the three countries, the main tool of green finance in the field of decarbonization is green bonds; other types of green finance are used to a limited extent. The progress of the United States and China is not so obvious, but based on the overall involvement of relevant government agencies and businesses in the green bond market, it can be assumed that the results will be observed in the near future. [ABSTRACT FROM AUTHOR]

China's newly announced carbon neutrality goal manifests its determination to advance green and low-carbon development. The country aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Consequently, guidelines and action plans have been actively deployed and issued. The carbon neutrality commitment (vision) and its detailed deployment (action) would contribute to climate change mitigation and corporate market value. Therefore, we categorize the carbon neutrality-related events and analyze their impacts on the stock market from July 2020 to March 2021. The main findings are as follows: (1) The action event have increased the carbon neutrality-related stocks by 0.04%, while that of the vision event is – 0.003%, indicating that investors' confidence increases when the carbon neutrality commitment is accompanied by specific and detailed guidelines. (2) The impact of carbon neutrality announcement becomes more positive and significant after related events occur repeatedly. (3) Carbon neutrality-related power industry and state-owned enterprises are potential beneficiaries of this decarbonization goal. Our study supplements the literature on climate policy and its economic value, potentially contributing to the next stage of global decarbonization. [ABSTRACT FROM AUTHOR]