Comparison And Analysis Of Carbon Emission Trading Effect Based On Porter Hypothesis

As the world’s largest emitter of carbon dioxide that surpasses the United States,China has been making efforts to reduce carbon dioxide emissions.The command-and-control emission reduction policies adopted by China to reduce carbon dioxide emissions can play a mandatory role in reducing emissions,but it will damage the production enthusiasm of the economic entities and reduce the productivity of the whole society.In 2011,we also started to adopt a carbon emission trading pilot policy that mainly relied on the market mechanism.After six years of trials,we began to adopt a comprehensive environmental protection policy in the carbon emission trading market in late 2017.Therefore,it is necessary to study whether the carbon emission trading mechanism will have a better impact on the economy than the command control mechanism can effectively reduce carbon emissions.Based on the analysis of Porter’s hypothesis and carbon emission trading theory,this paper further analyzes the effectiveness of carbon emission trading mechanism in theory.Then,on the basis of the “Porter Hypothesis”,this paper uses the difference in differences method and data envelopment analysis to verify whether the carbon emission trading market mechanism has a realistic porter effect and potential porter effect compared to the command control mechanism.The test results show that although the carbon emission trading can not realize the real porter effect compared with the command control mechanism,it can realize the potential porter effect.This is mainly due to the lag of economic effect and China’s implementation of carbon emissions trading is pilot policy but not a nationwide carbon emissions trading policy.