The dual environmental and economic effects of the emission trading scheme under local fiscal pressure: efficient markets and promising governments

doi:10.3389/fenvs.2023.1095321

	The dual environmental and economic effects of the emission trading scheme under local fiscal pressure: efficient markets and promising governments
	Song, Yuyuan1 ; Cheng, Qinliang 1; Gan, Xuewei1 ; Huang, Hengjun1,2
	2023-05-30
发表期刊	FRONTIERS IN ENVIRONMENTAL SCIENCE
卷号	11
摘要	Compared with developed economies, China implements the Emission Trading Scheme (ETS) within a fundamentally distinct political-economic-institutional context. This study aims to investigate the internal mechanisms and external constraints of emission trading scheme in achieving the dual benefits of environmental preservation and economic advancement within the institutional context of fiscal decentralization. We demonstrate that the transmission from emission reduction to economic returns inherently facilitates the realization of dual benefits, and further propose a restrictive effect of local fiscal pressure on the effectiveness of the emission trading scheme. Using panel data of 284 prefectural-level cities from 2003 to 2017, we conduct a quasi-experiment based on China's emission trading scheme pilot policy in 2007. The results indicate three primary conclusions: First, the implementation of emission trading scheme in China generally yields dual environmental-economic benefits, with emission reduction serving as a transmission channel for realizing economic gains. Second, high fiscal pressure on local governments not only directly undermines policy effects but also indirectly affects the transmission channel. Finally, the dual benefits have been realized in eastern China, but not yet in the central and western regions. This study contributes to the research on market-oriented environmental governance under fiscal decentralization. The theoretical logic of this study can be applied to a wide range of market-based mechanisms for green factors trading, providing valuable insights for countries facing similar challenges.
关键词	emission trading scheme (ETS) local fiscal pressure fiscal decentralization regional heterogeneity analysis transmission channels fiscal constraint dual environmental-economic effects difference-in-differences (DID)
DOI	10.3389/fenvs.2023.1095321
收录类别	SCIE
语种	英语
WOS研究方向	Environmental Sciences & Ecology
WOS类目	Environmental Sciences
WOS记录号	WOS:001009811400001
出版者	FRONTIERS MEDIA SA
原始文献类型	Article
EISSN	2296-665X
引用统计	被引频次：3[WOS] [WOS记录] [WOS相关记录]
文献类型	期刊论文
条目标识符	http://ir.lzufe.edu.cn/handle/39EH0E1M/34562
专题	统计与数据科学学院金融学院
作者单位	1.Lanzhou Univ Finance & Econ, Sch Stat, Lanzhou, Peoples R China; 2.Gansu Prov Key Lab Digital Econ & Social Comp Sci, Lanzhou, Peoples R China
第一作者单位	兰州财经大学
推荐引用方式 GB/T 7714	Song, Yuyuan,Cheng, Qinliang,Gan, Xuewei,et al. The dual environmental and economic effects of the emission trading scheme under local fiscal pressure: efficient markets and promising governments[J]. FRONTIERS IN ENVIRONMENTAL SCIENCE,2023,11.
APA	Song, Yuyuan,Cheng, Qinliang,Gan, Xuewei,&Huang, Hengjun.(2023).The dual environmental and economic effects of the emission trading scheme under local fiscal pressure: efficient markets and promising governments.FRONTIERS IN ENVIRONMENTAL SCIENCE,11.
MLA	Song, Yuyuan,et al."The dual environmental and economic effects of the emission trading scheme under local fiscal pressure: efficient markets and promising governments".FRONTIERS IN ENVIRONMENTAL SCIENCE 11(2023).