Title: Carbon neutrality: evaluating the impact of carbon emissions trading policy on green energy and environmental economic efficiency

Authors: Yanmei Li; Yi Zhang

Addresses: Department of Economic Management, North China Electric Power University, Baoding, 071003, Hebei, China ' Department of Economic Management, North China Electric Power University, Baoding, 071003, Hebei, China

Abstract: Amid rising global concern over climate change, China launched its carbon emissions trading pilot (CETP) in 2011 to promote green energy and low-carbon development. This study investigates the impact of CETP on green energy environmental and economic efficiency (GEEEE), using a new measurement index and the slack-based measure super-efficiency model. Treating the policy as a quasi-natural experiment and analysing its implementation across seven pilot provinces between 2009 and 2023, a difference-in-differences approach is employed to assess its effectiveness. We evaluate both the dynamic and spatial heterogeneity of the policy's outcomes by examining variations across regions and industries. The findings suggest that the CETP significantly enhances GEEEE performance in the designated pilot areas. Moreover, this effect is amplified by three key mechanisms: technological innovation, energy and industrial restructuring, and regional policy responsiveness. These findings provide theoretical and practical insights for policymakers in designing carbon reduction strategies and advancing global climate goals.

Keywords: carbon emissions trading policy; carbon neutrality; low carbon development; energy green transition; super-efficiency model with undesired outputs; DID model; carbon emissions trading pilot; CETP; slack-based measure; SBM.

DOI: 10.1504/IJETP.2026.152981

International Journal of Energy Technology and Policy, 2026 Vol.21 No.1, pp.47 - 78

Received: 30 May 2025
Accepted: 26 Sep 2025
Published online: 17 Apr 2026 *

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