Does the EU emissions trading system help reduce PM2.5 damage? A research based on PSM-DID method

Air quality issues, especially haze pollution, have become an important aspect that threatens the sustainable development and health of human beings. Previous studies on the environmental effects of emissions trading system (ETS) mainly focused on carbon emission reduction, instead of focusing on the synergistic governance effect between carbon emission and PM2.5 reduction. Based on the PSM-DID method and the World Development Index (WDI) database, this paper examines whether the EU ETS has a spillover effect on PM2.5 damage reduction, and discusses the related impact mechanisms. The research results show that the EU ETS promotes the reduction of PM2.5 damage, and in different phases of implementation, the impact of the EU ETS on the reduction of PM2.5 damage has a dynamic effect. The robustness test results also show that the research conclusions of this paper are highly reliable. Finally, this paper gives relevant policy suggestions, which can encourage countries to achieve carbon emission reduction targets while helping to reduce PM2.5 damage, and eventually achieve a win-win situation between economic growth and environmental improvement.

Automated summary

This paper examines the spillover effect of the EU ETS on PM2.5 damage reduction using the PSM-DID method and WDI database, finding that the EU ETS promotes the reduction of PM2.5 damage and has a dynamic effect on PM2.5 damage reduction in different phases of implementation. The robustness test results also confirm the highly reliable research conclusions.