The impact of low-carbon emission reduction policies on economic growth

Abstract

As the development of a green and low-carbon economy has received great attention from governments around the world, carbon peaking and carbon neutrality have become important issues raised by China. As a major energy consuming country, government has actively formulated and implemented various carbon emission reduction policies in order to curb carbon emissions. Whether these policies achieve economic growth in the process of energy conservation and emission reduction, and promote China's green and low-carbon development transition is the focus of this paper. This paper selects data from 30 provinces in China from 2010 to 2019, establishes a model, and empirically analysis the impact of carbon emission reduction policy tools on economic growth. The results show that there is a significant negative correlation between mandatory carbon emission reduction policies and economic growth, while market-based carbon emission reduction policies enhance the economic strength of the region. In addition, this paper empirically tests that after the establishment of the carbon market in 2013, market-based carbon emission reduction policies have significantly promoted economic growth, and the impact of carbon emission reduction policies on economic growth have regional heterogeneity.