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Market-based environmental regulation and carbon emission reduction: evidence from China’s carbon emission trading market

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Analysis reveals carbon emission trading reduces CO2 emissions via green technologies, indicating synergy with green finance policies.

Carbon emission trading decreases carbon emission intensity by promoting renewable energy adoption and green technologies.
Findings show a notable reduction in CO2 emissions, leveraging the Difference-in-Difference method for precise assessment.
The study employs provincial panel data from 2009 to 2020 to construct models, providing a comprehensive evaluation.
The results emphasize the need for policy synergy, highlighting the positive impact of green finance on emission trading markets.

Xu et al. (2025) studied this question.

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