Assessment of the Impact of China's Carbon Emissions Trading Pilot Policy on the Export Product Quality

Abstract

To achieve the "dual carbon" goals, China has established a carbon emissions trading market to reduce corporate carbon emissions through market mechanisms. The effect of China's carbon trading pilot programme on export product quality is examined in this study. The analysis employs the quasi-natural experiment provided by this policy, focusing on the quality of exported goods. From 2009 to 2016, panel data from 31 provinces and municipalities created a difference-in-differences (DID) model. This model allows for a comprehensive examination of the impact at the city, industry, and destination country levels. The results show that the quality of exported goods is much improved by the adoption of the carbon trading pilot programme. Additionally, the examination of heterogeneity shows that the influence of the policy is greatest in central cities, with less noticeable effects in the eastern and western areas. The report offers suggestions for advancing carbon trading policies at its conclusion, including the adoption of customized strategies that take into account the distinctive qualities of certain geographic areas. These recommendations are intended to maximise the effectiveness of the carbon trading system and support China's broader environmental and economic objectives.