Replication data for: Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots

Principal Investigator(s): View help for Principal Investigator(s) Jingbo Cui; Junjie Zhang; Yang Zheng

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Project Citation:

Cui, Jingbo, Zhang, Junjie, and Zheng, Yang. Replication data for: Carbon Pricing Induces Innovation: Evidence from China’s Regional Carbon Market Pilots. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114441V1

Project Description

Summary: China has launched seven regional pilots of emission trading scheme (ETS) to limit its carbon emissions. Taking advantage of the variations in the regional ETS pilots across regions and sectors and over time, we employ a difference-in-difference-in-differences (DDD) approach to evaluate the effect of ETS on low-carbon innovation at the firm level. Using patent application data of publicly-listed firms in China between 2003 and 2015, we find that the ETS pilots induced innovation in low-carbon technologies. The more active pilots—measured by carbon price and turnover rate of allowance trading—are associated with more intense low-carbon innovation.

Scope of Project

JEL Classification:
      D22 Firm Behavior: Empirical Analysis
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O31 Innovation and Invention: Processes and Incentives
      O34 Intellectual Property and Intellectual Capital
      P28 Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
      P31 Socialist Enterprises and Their Transitions
      Q52 Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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Published Versions

V1 [2019-10-12]

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