Economics

Can carbon trading policy boost upgrading and optimization of industrial structure? An empirical study based on data from China

D. Chen, H. Liao, et al.

Discover how China's carbon trading policy is reshaping industrial structures and driving technological innovation. This insightful research by Daoping Chen, Haifeng Liao, and Hong Tan reveals the varying impacts across regions and urban characteristics, offering a fresh perspective on sustainability and economic growth.

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Playback language: English

Index

Abstract

This paper investigates the impact of China's carbon trading policy (CTP) on industrial structure upgrading (UIS) and optimization (OIS) using panel data from 201 prefecture-level cities between 2004 and 2018. The study finds that CTP generally promotes both UIS and OIS, but with significant differences. Mechanism analysis reveals that technological innovation mediates the effect of CTP on both UIS and OIS. Heterogeneity analysis shows regional differences, with CTP more conducive to UIS in the east and OIS in the central and western regions. Urban characteristics like human capital, fiscal expenditure, foreign investment, and infrastructure also influence the impact of CTP.

Publisher

Humanities and Social Sciences Communications

Published On

Sep 17, 2024

Authors

Daoping Chen, Haifeng Liao, Hong Tan

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