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<p>In this study, we try to quantify the carbon ETS effect on green production efficiency, especially considering the green innovation effect. To this end, a network Data Envelopment Analysis (DEA) model is constructed, which embeds the green innovation process into the production process, to calculate the green production efficiency; then a spatial difference-in-differences (SDID) model is employed to evaluate the effect of ETS on urban green production efficiency based on a panel dataset of China’s 275 cities from 2006 to 2019. The results show that the implementation of ETS improves the local overall efficiency of green innovation and production (GIPE) by 15.6%, which is higher than that without considering the innovation process, i.e., 13.3%. In addition, the implementation of ETS decreases GIPE in neighboring cities because of the spillover effect, which is also higher than that without considering the innovation process. Finally, the effects of ETS on urban GIPE are more significant in the regions with high intellectual property protection levels and public environmental awareness.</p>

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Carbon pricing, green innovation, and production efficiency—new evidence from China

  • 期刊论文

  • 发表日期：

    2026年2月17日

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  • Qiang Tu,
  • Limei Zuo,
  • Jianlei Mo,
  • Yingnan Wang

摘要

In this study, we try to quantify the carbon ETS effect on green production efficiency, especially considering the green innovation effect. To this end, a network Data Envelopment Analysis (DEA) model is constructed, which embeds the green innovation process into the production process, to calculate the green production efficiency; then a spatial difference-in-differences (SDID) model is employed to evaluate the effect of ETS on urban green production efficiency based on a panel dataset of China’s 275 cities from 2006 to 2019. The results show that the implementation of ETS improves the local overall efficiency of green innovation and production (GIPE) by 15.6%, which is higher than that without considering the innovation process, i.e., 13.3%. In addition, the implementation of ETS decreases GIPE in neighboring cities because of the spillover effect, which is also higher than that without considering the innovation process. Finally, the effects of ETS on urban GIPE are more significant in the regions with high intellectual property protection levels and public environmental awareness.