The Impact of Emissions Trading Systems on Carbon Emissions: A Cross-Country Empirical Analysis Based on the Difference-in-Differences Model
Abstract
panel dataset of 20 major economies spanning the period from 2000 to 2019. Employing a two-way fixed effects Difference-in-Differences
(DID) framework, this research isolates the net policy impact of ETS on per capita CO2 emissions while controlling for key macroeconomic
indicators, including economic growth, industrial structure, foreign direct investment, and trade openness. The empirical results show that
ETS significantly reduces carbon emissions. This study provides timely empirical evidence supporting the global expansion of carbon market
mechanisms and offers valuable insights for policymakers aiming to decouple economic development from environmental degradation.
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DOI: http://dx.doi.org/10.70711/frim.v4i7.9850
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