Winning the blue sky defense in China: does energy quota trading curb air pollution?

Engineering notes

Engineering notes will be added by the Power for Solar editorial team.

Chinese explanation / 中文解读

中文解读待补充：本站会优先为光伏效率、钙钛矿太阳能电池、储能技术、太阳能热利用、BIPV、并网技术等高价值论文补充中文说明。

Original abstract

The energy quota trading (EQT) pilot is a market-based tool for promoting efficient energy allocation. While studies have examined the energy-saving and carbon-reducing benefits of the EQT pilot in China, few have explored its effects on pollution control. As such, our study investigates the effect of EQT on urban air pollution by employing the difference-in-differences (DID) approach and using panel data for 284 Chinese cities from 2013 to 2020. The results indicate that the EQT pilot significantly curbs the pilot city’s air pollution. The promotion of urban technological innovation and the optimization of industrial structure are influencing mechanisms, while the mechanism of energy structure optimization is not observed. Furthermore, the pollution reduction effect of EQT varies significantly depending on the geographical location, resource endowment, and financial pressure of cities. The pollution reduction effect of EQT is stronger for central-western cities, energy-oriented cities, and cities with low fiscal pressure. In addition, the EQT pilot has positive spatial spillover effects; i.e., it significantly curbs air pollution in neighboring cities. This study not only expands the research on the environmental impacts of the EQT pilot but also provides empirical support for the design of market-oriented environmental regulatory policies.

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