The impact of China’s SO₂ emission trading system on industrial total factor productivity: evidence from industrial sub-sectors at the provincial level

References

• Albrizio, Silvia, Tomasz Kozluk, and Vera Zipperer. 2017. “Environmental Policies and Productivity Growth: Evidence across Industries and Firms.” Journal of Environmental Economics and Management 81: 209–226. doi:10.1016/j.jeem.2016.06.002.
   Web of Science ®Google Scholar
• Anderson, Barry, Frank J. Convery, and Corrado Di Maria. 2010. “Technological Change and the EU ETS: The Case of Ireland.” SSRN Electronic Journal 216: 233–238. doi:10.2139/ssrn.1687944.
   Google Scholar
• Bansal, Pratima, and Trevor Hunter. 2003. “Strategic Explanations for the Early Adoption of ISO 14001.” Journal of Business Ethics 46 (3): 289–299. doi:10.1023/A:1025536731830.
   Web of Science ®Google Scholar
• Betsill, Michele, and Matthew J. Hoffmann. 2011. “The Contours of ‘Cap and Trade’: The Evolution of Emissions Trading Systems for Greenhouse Gases.” Review of Policy Research 28 (1): 83–106. doi:10.1111/j.1541-1338.2010.00480.x.
   Web of Science ®Google Scholar
• Borghesi, Simone, Giulio Cainelli, and Massimiliano Mazzanti. 2015. “Linking Emission Trading to Environmental Innovation: Evidence from the Italian Manufacturing Industry.” Research Policy 44 (3): 669–683. doi:10.1016/j.respol.2014.10.014.
   Web of Science ®Google Scholar
• Brunnermeier, Smita B., and Mark A. Cohen. 2003. “Determinants of Environmental Innovation in US Manufacturing Industries.” Journal of Environmental Economics and Management 45 (2): 278–293. doi:10.1016/S0095-0696(02)00058-X.
   Web of Science ®Google Scholar
• Cai, Xiqian, Yi Lu, Mingqin Wu, and Linhui Yu. 2016. “Does Environmental Regulation Drive Away Inbound Foreign Direct Investment? Evidence from a Quasi-Natural Experiment in China.” Journal of Development Economics 123: 73–85. doi:10.1016/j.jdeveco.2016.08.003.
   Web of Science ®Google Scholar
• Charnes, A., W. W. Cooper, and E. Rhodes. 1978. “Measuring the Efficiency of Decision Making Units.” European Journal of Operational Research 2 (6): 429–444. doi: 10.1016/j.ejor.2009.01.001.
   Web of Science ®Google Scholar
• Chen, Xia, Yin E. Chen, and Chun-Ping Chang. 2019. “The Effects of Environmental Regulation and Industrial Structure on Carbon Dioxide Emission: A Non-Linear Investigation.” Environmental Science and Pollution Research International 26 (29): 30252–30267. doi:10.1007/s11356-019-06150-6.
   PubMed Web of Science ®Google Scholar
• Chen, Xiaoqi, Weiping Li, Zifang Chen, and Jiashun Huang. 2022. “Environmental Regulation and Real Earnings Management: Evidence from the SO2 Emissions Trading System in China.” Finance Research Letters 46: 102418. doi:10.1016/j.frl.2021.102418.
   Web of Science ®Google Scholar
• Chen, Shuo, Anna Shi, and Xin Wang. 2020. “Carbon Emission Curbing Effects and Influencing Mechanisms of China’s Emission Trading Scheme: The Mediating Roles of Technique Effect, Composition Effect and Allocation Effect.” Journal of Cleaner Production 264: 121700. doi:10.1016/j.jclepro.2020.121700.
   Web of Science ®Google Scholar
• Chen, Lili, Xiaodan Zhang, Feng He, and Runsong Yuan. 2019. “Regional Green Development Level and Its Spatial Relationship under the Constraints of Haze in China.” Journal of Cleaner Production 210: 376–387. doi:10.1016/j.jclepro.2018.11.037.
   Web of Science ®Google Scholar
• Chen, Li., Boyu Zhang, Hanping Hou, and Alfred Taudes. 2013. “Impact of Carbon Trading Market on Small Highway Freight Company: The Case of China.” International Journal on Advances in Information Sciences and Service Sciences 5 (9): 188–195. doi:10.4156/aiss.vol5.issue9.23.
   Google Scholar
• Christainsen, Gregory B., and Robert H. Haveman. 1981. “The Contribution of Environmental Regulations to the Slowdown in Productivity Growth.” Journal of Environmental Economics and Management 8 (4): 381–390. doi:10.1016/0095-0696(81)90048-6.
   Web of Science ®Google Scholar
• Coase, R. H. 1960. “The Problem of Social Cost.” The Journal of Law and Economics 3: 1–44. doi:10.2307/724810.
   Web of Science ®Google Scholar
• Demsetz, Harold. 1982. “Barriers to Entry.” The American Economic Review 72 (1): 47–57. doi:10.1016/0309-586X(82)90048-6.
   Web of Science ®Google Scholar
• Deng, Xiaohong, Xiaoyu Song, and Zhongmin Xu. 2018. “Transaction Costs, Modes, and Scales from Agricultural to Industrial Water Rights Trading in an Inland River Basin, Northwest China.” Water 10 (11): 1598. doi:10.3390/w10111598.
   Web of Science ®Google Scholar
• Ebenstein, Avraham. 2012. “The Consequences of Industrialization: Evidence from Water Pollution and Digestive Cancers in China.” Review of Economics and Statistics 94 (1): 186–201. doi:10.1162/REST_a_00150.
   Web of Science ®Google Scholar
• Feng, Yanhong, Shuanglian Chen, and Pierre Failler. 2020. “Productivity Effect Evaluation on Market-Type Environmental Regulation: A Case Study of SO2 Emission Trading Pilot in China.” International Journal of Environmental Research and Public Health 17 (21): 8027. doi:10.3390/ijerph17218027.
   PubMed Web of Science ®Google Scholar
• Feng, Chao, Jianbai Huang, and Miao Wang. 2018. “The Driving Forces and Potential Mitigation of Energy-Related CO2 Emissions in China’s Metal Industry.” Resources Policy 59: 487–494. doi:10.1016/j.resourpol.2018.09.003.
   Web of Science ®Google Scholar
• Ferrara, Eliana La, Alberto Chong, and Suzanne Duryea. 2012. “Soap Operas and Fertility: Evidence from Brazil.” American Economic Journal: Applied Economics 4 (4): 1–31. doi: Hdl.handle.net/10419/51429 doi:10.1257/app.4.4.1.
   Web of Science ®Google Scholar
• Goulder, Lawrence H., and Ian W. H. Parry. 2008. “Instrument Choice in Environmental Policy.” Review of Environmental Economics and Policy 2 (2): 152–174. doi:10.1093/reep/ren005.
   Web of Science ®Google Scholar
• Gray, Wayne B. 1987. “The Cost of Regulation: OSHA, EPA and the Productivity Slowdown.” The American Economic Review 77 (5): 998–1006. doi:10.2307/1810223.
   Web of Science ®Google Scholar
• Greenstone, M., J. A. List, and C. Syverson. 2012. The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing. Cambridge, MA: National Bureau of Economic Research.
   Google Scholar
• Hamamoto, Mitsutsugu. 2006. “Environmental Regulation and the Productivity of Japanese Manufacturing Industries.” Resource and Energy Economics 28 (4): 299–312. doi:10.1016/j.reseneeco.2005.11.001.
   Web of Science ®Google Scholar
• Hizen, Y., and T. Saijo. 2001. “Designing GHG Emissions Trading Institutions in the Kyoto Protocol: An Experimental Approach.” Environmental Modelling & Software 16 (6): 533–543. doi:10.1016/S1364-8152(01)00023-8.
   Web of Science ®Google Scholar
• Hou, Bingqing, Bing Wang, Minzhe Du, and Ning Zhang. 2020. “Does the SO2 Emissions Trading Scheme Encourage Green Total Factor Productivity? An Empirical Assessment on China’s Cities.” Environmental Science and Pollution Research International 27 (6): 6375–6388. doi:10.1007/s11356-019-07273-6.
   PubMed Web of Science ®Google Scholar
• Huang, Jian-Bai, Yu-Mei Luo, and Chao Feng. 2019. “An Overview of Carbon Dioxide Emissions from China’s Ferrous Metal Industry: 1991–2030.” Resources Policy 62: 541–549. doi:10.1016/j.resourpol.2018.10.010.
   Web of Science ®Google Scholar
• Hu, Jiangfeng, Xinxin Pan, and Qinghua Huang. 2020. “Quantity or Quality? The Impacts of Environmental Regulation on Firms’ Innovation–Quasi-Natural Experiment Based on China’s Carbon Emissions Trading Pilot.” Technological Forecasting and Social Change 158: 120122. doi:10.1016/j.techfore.2020.120122.
   Web of Science ®Google Scholar
• Hu, Jin-Li, Her-Jiun Sheu, and Shih-Fang Lo. 2005. “Under the Shadow of Asian Brown Clouds: Unbalanced Regional Productivities in China and Environmental Concerns.” International Journal of Sustainable Development & World Ecology 12 (4): 429–442. doi:10.1080/13504500509469652.
   Web of Science ®Google Scholar
• Jacobson, Louis S., Robert J. LaLonde, and Daniel G. Sullivan. 1993. “Earnings Losses of Displaced Workers.” The American Economic Review 83 (4): 685–709. doi:10.17848/WP92-11.
   Web of Science ®Google Scholar
• Jaraitė, Jūratė, and Corrado Di Maria. 2012. “Efficiency, Productivity and Environmental Policy: A Case Study of Power Generation in the EU.” Energy Economics 34 (5): 1557–1568. doi:10.1016/j.eneco.2011.11.017.
   Web of Science ®Google Scholar
• Jia, Fei, Xiuying Ma, Xiangyun Xu, and Lijuan Xie. 2020. “The Differential Role of Manufacturing and Non-Manufacturing TFP Growth in Economic Growth.” Structural Change and Economic Dynamics 52: 174–183. doi:10.1016/j.strueco.2019.10.006.
   Web of Science ®Google Scholar
• Jotzo, Frank, and Andreas Löschel. 2014. “Emissions Trading in China: Emerging Experiences and International Lessons.” Energy Policy 75: 3–8. doi:10.1016/j.enpol.2014.09.019.
   Web of Science ®Google Scholar
• Klenow, Hsieh, and J. Peter. 2009. “Misallocation and Manufacturing TFP in China and India.” Quarterly Journal of Economics 2009 (4): 1403–1448. doi:10.3386/w13290.
   Google Scholar
• Lanjouw, Jean Olson, and Ashoka Mody. 1996. “Innovation and the International Diffusion of Environmentally Responsive Technology.” Research Policy 25 (4): 549–571. doi:10.1016/0048-7333(95)00853-5.
   Web of Science ®Google Scholar
• Lanoie, Paul, Michel Patry, and Richard Lajeunesse. 2008. “Environmental Regulation and Productivity: Testing the Porter Hypothesis.” Journal of Productivity Analysis 30 (2): 121–128. doi:10.1007/s11123-008-0108-4.
   Web of Science ®Google Scholar
• Li, Zhenghui, Gaoke Liao, and Khaldoon Albitar. 2020. “Does Corporate Environmental Responsibility Engagement Affect Firm Value? The Mediating Role of Corporate Innovation.” Business Strategy and the Environment 29 (3): 1045–1055. doi:10.1002/bse.2416.
   Web of Science ®Google Scholar
• Li, Shan, Jianjiang Liu, and Daqian Shi. 2021. “The Impact of Emissions Trading System on Corporate Energy Efficiency: Evidence from a Quasi-Natural Experiment in China.” Energy 233: 121129. doi:10.1016/j.energy.2021.121129.
   Web of Science ®Google Scholar
• Li, Bin, Xing Peng, and Mingke Ouyang. 2013. “Environmental Regulation, Green Total Factor Productivity and the Transformation of China’s Industrial Development Mode-Analysis Based on Data of China’s 36 Industries.” China Industrial Economics 4: 56–68. (in Chinese)
   Google Scholar
• Liu, Shuru, Xiaoyang Jia, and Jiqiang Dang. 2020. “Research on the Measurement and Influencing Factors of Industrial Green Total Factor Productivity in China.” Economical Economy 36 (11): 46–53. (in Chinese)
   Google Scholar
• Liu, Yue, and Mohan Zhou. 2018. “Will Environmental Regulation Hinder Firms’ Competitiveness? A General Equilibrium Model with Heterogeneous Firms.” The Journal of World Economy 4: 150–167. (in Chinese)
   Google Scholar
• Li, Bin, and Shusheng Wu. 2017. “Effects of Local and Civil Environmental Regulation on Green Total Factor Productivity in China: A Spatial Durbin Econometric Analysis.” Journal of Cleaner Production 153: 342–353. doi:10.1016/j.jclepro.2016.10.042.
   Web of Science ®Google Scholar
• Magat, Wesley A. 1978. “Pollution Control and Technological Advance: A Dynamic Model of the Firm.” Journal of Environmental Economics and Management 5 (1): 1–25. doi:10.1016/0095-0696(78)90002-5.
   Web of Science ®Google Scholar
• Montgomery, W. Dabid. 1972. “Markets in Licenses and Efficient Pollution Control Programs.” Journal of Economic Theory 5 (3): 395–418. doi:10.1016/0022-0531(72)90049-X.
   Web of Science ®Google Scholar
• Naso, Pedro, Yi Huang, and Tim Swanson. 2017. “The Porter Hypothesis Goes to China: Spatial Development, Environmental Regulation and Productivity.” Cies Research Paper.
   Google Scholar
• Nie, Huihua, and Ruixue Jia. 2011. “Productivity and Resource Misplacement in Chinese Manufacturing Enterprises.” The Journal of World Economy 34 (07): 27–42. (in Chinese)
   Google Scholar
• Oh, Tick Hui, and Shing Chyi Chua. 2010. “Energy Efficiency and Carbon Trading Potential in Malaysia.” Renewable and Sustainable Energy Reviews 14 (7): 2095–2103. doi:10.1016/j.rser.2010.03.029.
   Web of Science ®Google Scholar
• Pastor, Jesús T., and C. A. Knox Lovell. 2005. “A Global Malmquist Productivity Index.” Economics Letters 88 (2): 266–271. doi:10.1016/j.econlet.2005.02.013.
   Web of Science ®Google Scholar
• Peng, Jiaying, Rui Xie, Chunbo Ma, and Yang Fu. 2021. “Market-Based Environmental Regulation and Total Factor Productivity: Evidence from Chinese Enterprises.” Economic Modelling 95: 394–407. doi:10.1016/j.econmod.2020.03.006.
   Web of Science ®Google Scholar
• Porter, Michael E., and Claas van der Linde. 1995. “Toward a New Conception of the Environment-Competitiveness Relationship.” Journal of Economic Perspectives 9 (4): 97–118. doi:10.1257/jep.9.4.97.
   Web of Science ®Google Scholar
• Ren, Shenggang, Yucai Hu, Jingjing Zheng, and Yangjie Wang. 2020. “Emissions Trading and Firm Innovation: Evidence from a Natural Experiment in China.” Technological Forecasting and Social Change 155: 119989. doi:10.1016/j.techfore.2020.119989.
   Web of Science ®Google Scholar
• Ren, Shenggang, Jingjing Zheng, Donghua Liu, and Xiaohong Chen. 2019. “Does Emissions Trading System Improve Firm’s Total Factor Productivity-Evidence from Chinese Listed Companies.” “China Industrial Economics 5: 5–23. (in Chinese)
   Google Scholar
• Rose, Adam, and Brandt Stevens. 1993. “The Efficiency and Equity of Marketable Permits for CO2 Emissions.” Resource and Energy Economics 15 (1): 117–146. doi:10.1016/0928-7655(93)90021-L.
   Web of Science ®Google Scholar
• Rubashkina, Y., M. Galeotti, and E. Verdolini. 2015. “Environmental Regulation and Competitiveness: Empirical Evidence on the Porter Hypothesis from European Manufacturing Sectors.” Energy Policy 83: 288–300. doi:10.1016/j.enpol.2015.02.014.
   Web of Science ®Google Scholar
• Shadbegian, Ronald J., and Wayne B. Gray. 2005. “Pollution Abatement Expenditures and Plant-Level Productivity: A Production Function Approach.” Ecological Economics 54 (2–3): 196–208. doi:10.1016/j.ecolecon.2004.12.029.
   Web of Science ®Google Scholar
• Shen, Neng, Haolan Liao, Rumeng Deng, and Qunwei Wang. 2019. “Different Types of Environmental Regulations and the Heterogeneous Influence on the Environmental Total Factor Productivity: Empirical Analysis of China’s Industry.” Journal of Cleaner Production 211: 171–184. doi:10.1016/j.jclepro.2018.11.170.
   Web of Science ®Google Scholar
• Shi, Dan, and Shaolin Li. 2020. “Emissions Trading System and Energy Use Efficiency-Measurements and Empirical Evidence for Cities at and above the Prefecture Level.” China Industrial Economics 9: 5–23. (in Chinese)
   Google Scholar
• Shi, Xinzheng, and Zhufeng Xu. 2018. “Environmental Regulation and Firm Exports: Evidence from the Eleventh Five-Year Plan in China.” Journal of Environmental Economics and Management 89: 187–200. doi:10.1016/j.jeem.2018.03.003.
   Web of Science ®Google Scholar
• Siegel, P. B., and T. G. Johnson. 1993. “Measuring the Economic Impacts of Reducing Environmentally Damaging Production Activities.” Review of Regional Studies 23 (3): 237–254. doi:10.52324/001c.9116.
   Google Scholar
• Tang, Hong-Li, Jian-Min Liu, Jun Mao, and Jin-Guang Wu. 2020. “The Effects of Emission Trading System on Corporate Innovation and Productivity-Empirical Evidence from China’s SO2 Emission Trading System.” Environmental Science and Pollution Research International 27 (17): 21604–21620. doi:10.1007/S11356-020-08566-X.
   PubMed Web of Science ®Google Scholar
• Tang, Hong-Li, Jian-Min Liu, and Jin-Guang Wu. 2020. “The Impact of Command-and-Control Environmental Regulation on Enterprise Total Factor Productivity: A Quasi-Natural Experiment Based on China’s ‘Two Control Zone’ Policy.” Journal of Cleaner Production 254: 120011. doi:10.1016/j.jclepro.2020.120011.
   Web of Science ®Google Scholar
• Tang, Ling, Jiaqian Wu, Lean Yu, and Qin Bao. 2015. “Carbon Emissions Trading Scheme Exploration in China: A Multi-Agent-Based Model.” Energy Policy 81: 152–169. doi:10.1016/j.enpol.2015.02.032.
   Web of Science ®Google Scholar
• Taylor, Margaret R. 2012. “Innovation under Cap-and-Trade Programs.” Proceedings of the National Academy of Sciences of the United States of America 109 (13): 4804–4809. doi:10.1073/pnas.1113462109.
   PubMed Web of Science ®Google Scholar
• Teng, Fei, Xin Wang, and Lv Zhiqiang. 2014. “Introducing the Emissions Trading System to China’s Electricity Sector: Challenges and Opportunities.” Energy Policy 75: 39–45. doi:10.1016/j.enpol.2014.08.010.
   Web of Science ®Google Scholar
• Testa, Francesco, Fabio Iraldo, and Marco Frey. 2011. “The Effect of Environmental Regulation on Firms’ Competitive Performance: The Case of the Building & Construction Sector in Some EU Regions.” Journal of Environmental Management 92 (9): 2136–2144. doi:10.1016/j.jenvman.2011.03.039.
   PubMed Web of Science ®Google Scholar
• Tobey, J. A. 1990. “The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test.” Kyklos 43 (2): 191–209. doi:10.1111/j.1467-6435.1990.tb00207.x.
   Web of Science ®Google Scholar
• Wang, Jinnan, Yang Ge, Jintian Cao, Chazhong Schreifels, and Dao Jeremy. 2004. “Sulfur Dioxide Emission Trading in China: Piloting Programs and Its Perspective.” http://www.caep.org.cn/english/paper/A-Framework-of-SO2-Emission-Trading-Program-in-China-2001.pdf
   Google Scholar
• Wang, Qian, Shenggang Ren, and Ya Hou. 2020. “Atmospheric Environmental Regulation and Industrial Total Factor Productivity: The Mediating Effect of Capital Intensity.” Environmental Science and Pollution Research International 27 (26): 33112–33126. doi:10.1007/s11356-020-09523-4.
   PubMed Web of Science ®Google Scholar
• Wang, Qian, and Baolong Yuan. 2018. “Air Pollution Control Intensity and Ecological Total-Factor Energy Efficiency: The Moderating Effect of Ownership Structure.” Journal of Cleaner Production 186: 373–387. doi:10.1016/j.jclepro.2018.03.106.
   Web of Science ®Google Scholar
• Wurgler, J. 2000. “Financial Markets and the Allocation of Capital.” Journal of Financial Economics 58 (1–2): 187–214. doi:10.1016/S0304-405X(00)00070-2.
   Web of Science ®Google Scholar
• Yang, Siying, Wenxuan Sun, Zhouyi Wu, and Yang He. 2022. “Can the SO2 Emission Trading System Promote Urban Emission Reduction?” Managerial and Decision Economics 43 (4): 963–974. doi:10.1002/mde.3431.
   Web of Science ®Google Scholar
• Yuan, Baolong, Shenggang Ren, and Xiaohong Chen. 2017. “Can Environmental Regulation Promote the Coordinated Development of Economy and Environment in China’s Manufacturing Industry? A Panel Data Analysis of 28 Sub-Sectors.” Journal of Cleaner Production 149: 11–24. doi:10.1016/j.jclepro.2017.02.065.
   Web of Science ®Google Scholar
• Zhang, Dongyang, and Pengcheng Du. 2020. “How China ‘Going Green’ Impacts Corporate Performance?” Journal of Cleaner Production 258: 120604. doi:10.1016/j.jclepro.2020.120604.
   Web of Science ®Google Scholar
• Zhang, Yue-Jun, Ting Liang, Yan-Lin Jin, and Bo Shen. 2020. “The Impact of Carbon Trading on Economic Output and Carbon Emissions Reduction in China’s Industrial Sectors.” Applied Energy 260: 114290. doi:10.1016/j.apenergy.2019.114290.
   Web of Science ®Google Scholar
• Zhang, Yue-Jun, Yu-Lu Peng, Chao-Qun Ma, and Bo Shen. 2017. “Can Environmental Innovation Facilitate Carbon Emissions Reduction? Evidence from China.” Energy Policy 100: 18–28. doi:10.1016/j.enpol.2016.10.005.
   Web of Science ®Google Scholar
• Zhang, Jian, Wei Zhang, Qi Song, Xin Li, Xuanting Ye, Yu Liu, and Yawei Xue. 2020. “Can Energy Saving Policies Drive Firm Innovation Behaviors? Evidence from China.” Technological Forecasting and Social Change 154: 119953. doi:10.1016/j.techfore.2020.119953.
   Web of Science ®Google Scholar
• Zhao, Xiaomeng, Chuanjiang Liu, and Mian Yang. 2018. “The Effects of Environmental Regulation on China’s Total Factor Productivity: An Empirical Study of Carbon-Intensive Industries.” Journal of Cleaner Production 179: 325–334. doi:10.1016/j.jclepro.2018.01.100.
   Web of Science ®Google Scholar
• Zhou, Di, Xiaoyu Liang, Ye Zhou, and Kai Tang. 2020. “Does Emission Trading Boost Carbon Productivity? Evidence from China’s Pilot Emission Trading Scheme.” International Journal of Environmental Research and Public Health 17 (15): 5522. doi:10.3390/ijerph17155522.
   PubMed Web of Science ®Google Scholar
• Zhuge, Liqun, Richard B. Freeman, and Matthew T. Higgins. 2020. “Regulation and Innovation: Examining Outcomes in Chinese Pollution Control Policy Areas.” Economic Modelling 89: 19–31. doi:10.1016/j.econmod.2019.09.041.
   Web of Science ®Google Scholar