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. 2023 Aug 23;13(1):13758.
doi: 10.1038/s41598-023-40811-4.

The energy conservation and emission reduction co-benefits of China's emission trading system

Chenggang Li  1   2 , Ziling Chen  1   3 , Yongxiang Hu  4 , Chengcheng Cai  5 , Xintong Zuo  1 , Guofei Shang  6 , Hongwei Lin  7
Affiliations

The energy conservation and emission reduction co-benefits of China's emission trading system

Chenggang Li et al. Sci Rep. .

Abstract

Emission Trading System (ETS) is an innovative practice under the progress of green development in China. It is also an important method for China to achieve market-oriented environmental governance in ecological civilization construction. The ETS pilot policy has implemented for more than 10 years. However, the co-benefits of ETS pilot policy by the integration of energy consumption, carbon and sulfur dioxide emissions, and wastewater has not been evaluated. In order to fill this gap, we use the 2003-2017 annual data of 30 China's provinces (municipalities and autonomous regions), and utilize the Difference-in-Differences (DID) model and Propensity Score Matching (PSM-DID) methodology to evaluate the co-benefits of ETS pilot policy on energy conservation and emission reduction. We find that the ETS pilot policy significantly promote energy conservation and emission reduction. Eastern and central China have significantly benefited from the policy, while the western China has not due to the limited technology and innovation as well as an imbalance of the industrial structure. The results provide the policy reference for China's government and institutions as well as the governments and institutions around the world to fulfill their commitments to save energy and reduce emissions, and early achieve the carbon peaking and carbon neutralization.

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Conflict of interest statement

The authors declare no competing interests.

Figures

Figure 1
Figure 1
The flow chart of this study.
Figure 2
Figure 2
Spatial distribution of the policy pilot groups. The brown legend indicates the spatial distribution of the treatment group, and the green legend indicates the spatial distribution of the control group.
Figure 3
Figure 3
Robustness test. If the regression coefficient assumed by the counterfactual is not significant, and the regression coefficients of different time windows are still significant, it indicates that the robustness is passed.
Figure 4
Figure 4
Dynamic co-benefits. (1) d_3: 3 years before the implementation of the policy; d_2: 2 years before the implementation of the policy; d_1: 1 year before the implementation of the policy. (2) d1: 1 year after the implementation of the policy; d2: 2 years after the implementation of the policy; d3: 3 years after the implementation of the policy.
Figure 5
Figure 5
Heterogeneous co-benefits.
See this image and copyright information in PMC

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