Research On The Impact Of Carbon Emission Trading Policy On China’s Green Total Factor Productivity

China is now at a stage of green,low-carbon and high-quality development,and the implementation of carbon emissions trading during this period fits well with our development philosophy.The Development and Reform Commission issued a policy at the end of 2011 that allowed some regions of the country to be able to carry out the initial act of trading carbon emission rights.In this market,carbon dioxide can become a commodity that can be traded.This market-based environmental regulation will not only realise China’s desire to reduce carbon emissions,but will also enhance the level of innovation in carbon emission reduction technology.The effects of carbon trading have been of great interest to scholars for more than a few decades now,and the combined effects of this policy on economic development and environmental protection need to be explored in depth.This thesis measures this indicator and discusses the impact of carbon emissions trading policy on it,so that China can develop its economy and protect the environment at the same time,achieve its dual carbon goal,and provide further theoretical support for China’s green development.This thesis selects 30 provinces and cities in China from 2004 to 2020 as a research sample to explore the role of carbon emissions trading policies on China’s green total factor productivity.It first introduces the corresponding contemporary background and compares the literature related to carbon emissions trading.Based on the relevant concepts and theoretical foundations,it analyses the problems that existed during the promulgation of carbon emissions trading policies,the establishment and development of trading markets.This is followed by an empirical study of the issues discussed in this thesis.The first step is to use the GML index to measure the green total factor productivity levels of China’s provinces and cities from 2004 to 2020.Secondly,a double difference(DID)model is constructed to further investigate the impact of carbon trading policies on green total factor productivity.Finally,on the basis of relevant theories,the mediating variable of technological progress is introduced and its transmission path is examined using a mediating effects model.Accordingly,the following conclusions are drawn:(1)China’s green total factor productivity as a whole continued to grow steadily from 2004 to 2020,and the carbon trading policy had a positive impact on it,indicating that China’s carbon trading policy has achieved good policy effects.(2)There are differences between the eastern and western regions of China in terms of the degree of economic development and openness to the outside world,as well as the degree of acceptance of the policy.In addition,compared to the western region,the eastern region has better tertiary industry development,more fiscal expenditure,better road access and higher urbanisation rate.Therefore,the effect of policy implementation in the eastern region is better and the impact on green total factor productivity is more significant.(3)After testing the transmission mechanism,the development of carbon emissions trading policies increased the level of technological development,which in turn led to an increase in green total factor productivity.