Price Mechanism, Government Constraints and Carbon Trading Pilot Policy for Emission Reduction

Abstract

Based on the data of 247 cities at the prefecture level in China from 2007 to 2019, this paper analyzes the impact of the carbon emissions trading (CET) pilot policy on carbon emission reduction from the perspective of the price mechanism and government constraints. The results show that the carbon emissions and carbon intensity in the pilot areas are significantly reduced by adjusting the industrial structure and promoting green technology innovation. In terms of regions, the emission reduction effect of the pilot policy in regions with a high proportion of industry is obviously weaker than that in other regions. The aim of the carbon emission trading policy in China that achieve carbon emission reduction is by coordinating the carbon emission trading price that fail to fulfill this aim independently and the degree of government punishment for enterprises.