The impact of China's carbon trading policy on enterprises' energy-saving behavior

• Published in: Heliyon Vol. 10; no. 2; p. e24326
• Main Authors: Zhou, Qianling, Cui, Xiaoyong, Ni, Hongfu, Gong, Liutang, Mao, Shengzhi
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 30.01.2024; Elsevier
• Subjects: Carbon emissions trading policy; Difference-in-differences method; Firm-level energy intensity; Firm-level energy intensity; Carbon emissions trading policy; Difference-in-differences method
• ISSN: 2405-8440; 2405-8440
• DOI: 10.1016/j.heliyon.2024.e24326

This paper mainly investigates whether emissions trading for pollutant permits more effective. By employing difference-in-differences method and a compressive firm-level dataset, we evaluate the impact of carbon trading system pilot cities policy on enterprises' energy-saving behavior. The findings indicate that after carbon trading system pilot cities policy, enterprises’ coal consumption and coal intensity decreased by almost 34 % and 33 % respectively. The policy effect is more pronounced for larger companies and for firms in energy-intensive sectors. Moreover, the policy effect becomes stronger over time. Our results satisfy the common trend assumption. Meanwhile, the investment in equipment and output are increased, which prove emissions marketization could bring about substantial improvements in productivity.