How Does Market-Oriented Environmental Regulation Affect Carbon Emission Performance? A Quasinatural Experiment Based on the Pilot Policy of Energy-Use Rights Trading

In order to evaluate the effect of market-oriented environmental management measures on regional carbon emission intensity in the pilot areas better, this paper adopts a quasinatural experiment of energy-use rights trading (EURT) policy by using the difference-in-difference method from the perspective of cities in China from 2006 to 2019. The results show that the policy of EURT can significantly reduce regional carbon emission intensity, which varies in different regions and different scales of cities. The main goal of implementing the policy is to reduce regional carbon emission intensity by improving the energy consumption structure and promoting the improvement of industrial structure and green innovation. In addition, the spatial impact of the EURT pilot project is demonstrated by its ability to not only reduce local carbon emission intensity but also decrease carbon intensity in and around the designated areas.