[Analysis of the Synergistic Effects of Energy Consumption Permit Trading Scheme on Pollution Reduction and Carbon Abatement].

ABSTRACT

Under the "dual-carbon" strategic goals, it is urgent to examine whether the energy consumption permit trading scheme （ECPTS）, as an innovative system in China's market-oriented reform of the energy sector, can promote the synergistic enhancement of pollution reduction and carbon abatement. Based on provincial panel data of China from 2008 to 2019, this study adopted a difference-in-differences model to examine the impacts of the ECPTS on the synergistic enhancement of pollution reduction and carbon abatement. The results demonstrated that the ECPTS improved the level of pollution reduction and carbon abatement in pilot areas. Specifically, the ECPTS led to a reduction of 13.3% in CO2 emissions and 3.1% in PM2.5 concentration in the pilot areas and resulted in an overall improvement of pollution reduction and carbon abatement by 0.237 units. Mechanism analysis revealed that energy efficiency served as a pathway through which the ECPTS empowered the synergistic enhancement of pollution reduction and carbon abatement. Moreover, the strengthening of local government environmental protection goals enhanced the pollution reduction and carbon abatement effects of the ECPTS. Surprisingly, the effectiveness of the ECPTS was not undermined by the goal of economic growth. This study provides new empirical evidence for understanding the relationship between market-based environmental regulation and collaborative governance and provides strong support for China to achieve its "dual-carbon" strategic goals.