Clean energy, emission trading policy, and CO2 emissions: Evidence from China

This paper constructs a unique dataset of clean energy and adopts static panel models and dynamic panel specifications to explore the correlation between clean energy and CO2 emissions. Furthermore, this paper employs the interaction term of pilot areas and pilot time as the proxy of emission trading policy to examine the effect of China's emission trading pilot on clean energy. Then, this paper conducts quasi-natural experiments on CO2 emissions. Our findings show a negative correlation between CO2 emissions and clean energy. We also find that China's emission trading pilot has a significant impact on promoting clean energy. In addition, empirical results affirm that emission trading market pilots can help decrease CO2 emissions. Finally, we put forwards relevant policy recommendations.

Automated summary

This paper constructs a unique dataset of clean energy and explores the correlation between clean energy and CO2 emissions using various statistical and modeling techniques. The study also investigates the impact of China's emission trading pilot on clean energy. The findings show a negative correlation between CO2 emissions and clean energy, and suggest that the emission trading pilot has a significant effect on promoting clean energy. The empirical results confirm the effectiveness of emission trading market pilots in reducing CO2 emissions.