DOES CARBON EMISSION TRADING MECHANISM REALIZE PORTER EFFECT IN CHINA?

Based on the panel data of 30 provincial administrative regions from 2003 to 2017, on the basis of considering the data availability, pilot provinces and cities in China's carbon dioxide emissions trading policy implementation as the boundary, selects the Differences-in-Differences is used to validate whether carbon emissions rights in China has realized the potter effect, the difference of the object is a DEAP - Malquis green total factor productivity index and carbon dioxide emissions intensity two factors, it was found: (1) After the implementation of China's CARBON dioxide trading mechanism, the Baud effect measured from the perspective of green total factor productivity (TFP) has been realized, while the BAUD effect measured from the perspective of carbon emission intensity has not been realized. (2) The proportion of fossil energy structure is higher and the proportion of secondary industry is higher, the improvement of green total factor productivity is more restricted. (3) The increasing level of marketization can inspire green total factor production. (4) The correlation coefficient between enterprises' R&D investment and pollution control investment on green TFP is not significant indicating that these inputs that could have improved green TFP still did not play a more effective role and did not show their due green capability. Therefore, this article proposes the following countermeasures to better promote the Porter effect through the market based trading mechanism of carbon emission rights. The policy of carbon dioxide emission trading optimized to the greatest extent, and gives full play to its function of balance and coordination between economic development and environmental protection. Further, this paper adjusts the R&D investment in green all-factor production and the direction of pollution control investment, which optimize the cleanliness of the industrial structure and energy structure.y