The impact of the establishment of carbon emissions trade exchange on carbon emissions efficiency

Abstract

The China government focuses on changes in carbon emissions efficiency with establishing carbon emissions trade exchange (CETE). It is meaningful to study whether the pilot CETEs can facilitate the betterment of carbon emissions efficiency. Using the data of 30 provinces in China within 2000–2017, this article gauges the carbon emissions efficiency with the SBM-DEA model. This paper analyzes the impact of China's pilot CETEs, which was gradually launched from 2013 to 2014, on carbon emissions efficiency through the Time-Varying difference-in-difference (DID) model. Finally, the mediating effect model is further used to analyze the impact mechanism of the pilot CETEs on carbon emission efficiency from the perspectives of innovation investment and pollution control investment. The results reveal that the carbon emissions efficiency of each province from 2000 to 2017 is not very ideal. All provinces have some room to facilitate the carbon emissions efficiency. The pilot CETEs have increased the carbon emissions efficiency and reduced carbon dioxide emissions. The policy affects the innovation investment and pollution control investment, further influences the carbon emissions efficiency.