Scholars@Duke publication: Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots

Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots

Publication , Journal Article

Cui, J; Zhang, J; Zheng, Y

Published in: American Economic Association Papers and Proceedings

2018

Published version (DOI) Open Access Copy (Duke)

China has launched seven regional pilots of emission trading scheme (ETS) to limit its carbon emissions. Taking advantage of the variations in the regional ETS pilots across regions and sectors and over time, we employ a difference-in-difference-in-differences (DDD) approach to evaluate the effect of ETS on low-carbon innovation at the firm level. Using patent application data of publicly-listed firms in China between 2003 and 2015, we find that the ETS pilots induced innovation in low-carbon technologies. The more active pilots—measured by carbon price and turnover rate of allowance trading—are associated with more intense low-carbon innovation.

Duke Scholars

Author Jingbo Cui DKU Faculty

Author Junjie Zhang Environmental Sciences and Policy

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Published In

American Economic Association Papers and Proceedings

DOI

10.1257/pandp.20181027

ISSN

2574-0768

Publication Date

2018

Volume

108

Start / End Page

453 / 57

Publisher

American Economic Association

Citation

APA

Chicago

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MLA

NLM

Cui, J., Zhang, J., & Zheng, Y. (2018). Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots. American Economic Association Papers and Proceedings, 108, 453–457. https://doi.org/10.1257/pandp.20181027

Cui, Jingbo, Junjie Zhang, and Yang Zheng. “Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots.” American Economic Association Papers and Proceedings 108 (2018): 453–57. https://doi.org/10.1257/pandp.20181027.

Cui J, Zhang J, Zheng Y. Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots. American Economic Association Papers and Proceedings. 2018;108:453–7.

Cui, Jingbo, et al. “Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots.” American Economic Association Papers and Proceedings, vol. 108, American Economic Association, 2018, pp. 453–57. Manual, doi:10.1257/pandp.20181027.

Cui J, Zhang J, Zheng Y. Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots. American Economic Association Papers and Proceedings. American Economic Association; 2018;108:453–57.

Published In

American Economic Association Papers and Proceedings

DOI

10.1257/pandp.20181027

ISSN

2574-0768

Publication Date

2018

Volume

108

Start / End Page

453 / 57

Publisher

American Economic Association