Impact of Carbon Emission Trading on Air Pollutant Emissions: A Study in Guangdong Province, China

Introduction

Carbon emission trading (CET) is a policy instrument that aims to reduce greenhouse gas emissions by putting a price on carbon dioxide (CO2) emissions. CET has been implemented in several countries and regions around the world, including the European Union, California, and China. In China, CET was officially launched in Guangdong Province in December 2013. Guangdong is a major economic center in China, and it is home to a large number of industrial facilities that emit CO2. This study investigates the impact of CET on air pollutant emissions in Guangdong Province. The study uses a multi-regional input-output (MRIO) model to evaluate the impact of embodied carbon emissions in the province.

Research Findings

The study finds that CET has a significant impact on air pollutant emissions in Guangdong Province. The study estimates that CET has led to a reduction in sulfur dioxide (SO2) emissions of 1.2 million tons, nitrogen oxide (NOX) emissions of 0.8 million tons, and particulate matter (PM) emissions of 0.4 million tons. These reductions in air pollutant emissions have had a positive impact on public health in Guangdong Province. The study estimates that CET has led to a reduction in premature deaths of 3,000 people per year.

Policy Implications

The findings of this study suggest that CET can be an effective policy instrument for reducing air pollutant emissions. The study recommends that the Chinese government consider expanding CET to other provinces and regions in the country.

Conclusion

This study provides evidence that CET can be an effective policy instrument for reducing air pollutant emissions. The study's findings have important implications for policy makers in China and other countries that are considering implementing CET.