Research On The Effects Of Green Technology Innovation Of Chinese Pilot Carbon Markets

The carbon market is an important policy tool for global climate governance and has been widely implemented in 27 regions including the European Union and the United States.China initiated carbon emission trading pilot projects in 7 provinces and cities including Guangdong,Shenzhen,Beijing and Hubei in 2011,aiming to explore effective ways to reduce emission reduction costs and stimulate green technological innovation through market mechanisms,and to accumulate experience for the development of the national carbon market.The national unified carbon market was launched in 2017,and online transactions will be launched in June 2021 to help China achieve its carbon peak and carbon neutral goals.In this context,the evaluation of the effects of green technology innovation in the pilot carbon market is of great practical significance for the efficient operation of the national unified carbon market,achieving high-quality carbon peaks,and building a green technology innovation system.Based on theoretical and literature analysis,this paper clarifies the impact mechanism of the carbon market on green technology innovation,selects panel data from209 cities in China from 2006 to 2017,and uses the propensity score matching-double difference method to compare China’s pilot carbon market The effect of green technology innovation is empirically analyzed.First,based on the city’s innovative agglomeration function,the city is selected as the analysis object,the pilot cities and non-pilot cities are matched with propensity scores,and then the double difference method is used for regression;second,the counterfactual test of hypothetical policy impact points verifies the regression results Reliability;Finally,the heterogeneity test is conducted from three aspects: industry heterogeneity,regional heterogeneity,and urban administrative hierarchy.The possible marginal contributions of this research are: First,analyze the effects of green technology innovation in the pilot carbon market from the city level,and provide new empirical evidence for the development of the carbon market and promote green technology innovation;second,from three different levels of industry,region,and administration.The analysis of heterogeneity from perspectives has enriched the perspectives of research pilot carbon markets on green technology innovation.The study found that: in general,China’s carbon market pilot policies promote green technology innovation,but there is a certain lag;in the industry,it has a significant promotion effect on the power industry,construction industry,transportation industry,and chemical industry.The metal industry is not significant,mainly due to the overcapacity of steel in the metal industry,which leads to a decline in corporate profits.It is unable to invest too much in green technology innovation.At the same time,it faces higher carbon costs.The compensation effect brought by the pilot carbon market is offset by the crowding out effect and cannot be promoted.Green technology innovation;regionally,the pilot carbon market in eastern and central China has a positive effect of green technology innovation.Among them,the effect of green technology innovation in the eastern region is more obvious,but it has a negative effect on the western region,because the western region’s carbon market mechanism needs to be Further improvement,low corporate participation,and failure to effectively stimulate green technology innovation;in terms of urban administrative levels,the pilot provincial capital cities have clearly promoted green technology innovation,while the pilot non-provincial capital cities have only a slight promotion effect on green technology innovation.The main reason for the difference is that the provincial capital cities are rich in innovation resources and the implementation of policies is relatively in place.Based on the research results,this article proposes policy recommendations to support the construction of a unified national carbon market in the future from five aspects:(1)Improve the carbon market mechanism by unifying the carbon allowance allocation plan,expanding the scope of market participants,and establishing a compliance and penalty system;(2)Improve green investment and financing,and use national carbon trading surplus funds to support corporate green technology innovation and other corporate-oriented incentive policies;(3)Strengthen the synergy with industrial policies,environmental regulatory policies,and patent policies(4)Establish measures to local conditions Carbon emission targets are classified and implemented according to the characteristics of different industries;(5)Balance various resources in the province and strengthen cooperation and exchanges between cities.