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Influence of a pilot carbon trading policy on enterprises' low-carbon innovation in China.
- Source :
-
Climate Policy (Earthscan) . Mar2021, Vol. 21 Issue 3, p318-336. 19p. - Publication Year :
- 2021
-
Abstract
- China's pilot carbon trading policy is expected to be both efficient and flexible in reducing carbon emissions through incentivising low-carbon innovation. This paper analyses the effects of this pilot policy on low-carbon innovation using a difference-in-difference model, based on a sample of selected enterprises and carrying out a series of robustness tests to corroborate the results. The analysis shows that the pilot carbon trading policy is predicted to have a significantly positive effect on the low-carbon innovation of enterprises that fall under its scope, notably by alleviating obstacles to the financing of low-carbon innovation. Furthermore, a heterogeneity analysis of enterprises' characteristics and carbon allowance allocation methods in different pilots indicates that the effect of the pilot carbon trading policy on enterprises' low-carbon innovation will be reflected mainly in enterprises in China's eastern provinces, and in state-owned enterprises. Compared with the grandfathering and historical intensity allocation methods, the findings of this study suggest that the extent of low-carbon innovation is significantly greater when the benchmarking method is used. The results of this paper offer some key insights into improving the policy design of a nationwide carbon trading market in China, as well as a reference point for other countries and regions, especially developing countries, in establishing a carbon trading market. Key policy insights China's pilot carbon trading policy can promote low-carbon innovation. Easing the financing constraints of enterprises can promote low-carbon innovation. Compared with the grandfathering and historical intensity allocation methods, using the benchmarking method significantly improves the enterprises' low-carbon innovation. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 14693062
- Volume :
- 21
- Issue :
- 3
- Database :
- Academic Search Index
- Journal :
- Climate Policy (Earthscan)
- Publication Type :
- Academic Journal
- Accession number :
- 148980801
- Full Text :
- https://doi.org/10.1080/14693062.2020.1864268