Mandate-based and market-based mechanisms represent two primary approaches to achieving policy objectives,yet the debate over their relative effectiveness remains unresolved.The mandate-based approach is exemplified b...Mandate-based and market-based mechanisms represent two primary approaches to achieving policy objectives,yet the debate over their relative effectiveness remains unresolved.The mandate-based approach is exemplified by pilot programs for low-carbon provinces and cities,referred to as“Low-Carbon Pilot Provinces/Cities”,while the market-based mechanism is reflected in pilot programs for carbon emissions trading markets,or“Carbon Trading Pilot Programs”.This paper employs event study analysis to compare the carbon emission reduction impacts of these two approaches.Our findings reveal that the Low-Carbon Pilot Provinces/Cities achieved emissions reduction primarily by curbing economic output,without significantly reducing carbon emissions intensity.In contrast,the Carbon Trading Pilot Programs led to an increase in total carbon emissions by driving economic growth,even as they reduced carbon emissions intensity.A heterogeneity analysis further indicates that the emissions reductions observed in the Low-Carbon Pilot Provinces/Cities were predominantly concentrated in economically less-developed regions,whereas the increase in carbon emissions associated with the Carbon Trading Pilot Programs was more significant in regions with lower initial carbon emissions intensity.Against the backdrop of China’s efforts to achieve its carbon peak and neutrality goals,this paper offers valuable insights for the design of effective climate policies.展开更多
文摘Mandate-based and market-based mechanisms represent two primary approaches to achieving policy objectives,yet the debate over their relative effectiveness remains unresolved.The mandate-based approach is exemplified by pilot programs for low-carbon provinces and cities,referred to as“Low-Carbon Pilot Provinces/Cities”,while the market-based mechanism is reflected in pilot programs for carbon emissions trading markets,or“Carbon Trading Pilot Programs”.This paper employs event study analysis to compare the carbon emission reduction impacts of these two approaches.Our findings reveal that the Low-Carbon Pilot Provinces/Cities achieved emissions reduction primarily by curbing economic output,without significantly reducing carbon emissions intensity.In contrast,the Carbon Trading Pilot Programs led to an increase in total carbon emissions by driving economic growth,even as they reduced carbon emissions intensity.A heterogeneity analysis further indicates that the emissions reductions observed in the Low-Carbon Pilot Provinces/Cities were predominantly concentrated in economically less-developed regions,whereas the increase in carbon emissions associated with the Carbon Trading Pilot Programs was more significant in regions with lower initial carbon emissions intensity.Against the backdrop of China’s efforts to achieve its carbon peak and neutrality goals,this paper offers valuable insights for the design of effective climate policies.
