The Impact Of Carbon Emissions Trading Policies On Green Total Factor Productivity Growth

China’s economy has developed rapidly since the reform and opening up,but the traditional extensive economic development mode in the past years has caused excessive consumption of resources,serious environmental pollution and other problems,which are bad for the sustainable development of China’s economy.At the same time,the emissions of greenhouse gas have been concerned widely due to the global warming,so China has put forward emission reduction targets and adopted carbon emission trading pilot policy.The green total factor productivity,which takes resources and environment into account,is regarded as an important indicator to measure the coordinated development of economic development and ecological environment.Therefore,this paper attempts to explore the impact of carbon emission trading policy on the growth of green total factor productivity in China from the perspective of market-oriented environmental regulation,and provide theoretical support and policy suggestions for the promotion of carbon emission trading policy in the whole country.Based on the literature review,this paper focuses on the impact mechanism of carbon emission trading policy on the growth rate of green total factor productivity.We analyze its transmission mechanism from the direct impact of cost and the indirect impact of technological innovation.Then,this paper uses the directional distance function and Global Malmquist Luenberger productivity indicators to calculate the green total factor productivity of China’s cities from 2006 to 2017,and decomposes it into technical efficiency and technical progress and analyzes them from two dimensions of time and space.Based on the quasi-natural experiment of carbon emission trading policy in seven pilot areas around 2012,this paper uses double difference method to study the impact of carbon emission trading policy on the growth of green total factor productivity,and use mediation effect model to test the conduct path of technological innovation.The main conclusions of this study are as follows: China’s green total factor productivity showed an upward trend from 2006 to 2017.From the perspective of time,the growth of GTFP in China fluctuates greatly,with an average growth rate of 4.15% from 2006 to 2017,4.45% for GTC and 4.47% for GEC.From the spatial dimension,GML index is bigger than 1 in 2006-2017 except for a few years.The average growth rates of green total factor productivity in the eastern regions,central and western regions of China are 1.56%,3.07% and 9.89% respectively.The carbon emission trading policy does not promote the growth of green total factor productivity in China according to the results,the "strong Porter Hypothesis" has not been realized.And the path of technological innovation affecting GTFP growth was established according to the results of the mediation model.The influence is different in different administrative level cities.In provincial capital cities and municipality cities,the "strong Porter Hypothesis" has been realized,and carbon emission trading policy promotes the growth of green total factor productivity,but in other cities,the "strong Porter Hypothesis" has not been realized.The innovation of this paper is as follows:1.Most of the existing literature on the growth of GTFP is based on provincial or national level data,this paper is based on the data of cities in China.Besides the real GDP,the green coverage rate is also used as the expected output to measure the growth of GTFP;2.Although the research on environmental regulation for GTFP growth is sufficient,the research on the impact of carbon emission trading right,a specific environmental regulation policy,on the growth rate of GTFP is relatively less,and it also avoids the difference of empirical conclusions which is caused by the use of different methods to build environmental regulation indicators;3.Taking into account the differences in the development level of different cities and other factors,this paper divides cities into provincial capital cities and municipality cities and other cities according to the administrative level,which is helpful to analyze the heterogeneity effect of carbon emission trading policy on the growth of green total factor productivity.