RESEARCH ARTICLE

Evaluation of China’s Carbon Emission Trading Policy Scheme and Impact Analysis

University of Pennsylvania, Philadelphia, PA 19104, United States

xwang35@outlook.com

Abstract

China's economic development, the rapid growth of national industry and manufacturing has resulted in a substantial increase in CO2 emissions in recent decades. Thus, China's carbon emissions trading policy aims to force relevant enterprises to implement l ow‐carbon technology innovation to address environmental challenges. Our study reviews the agenda -setting, formulation, adoption, implementation, impact analysis, and the logic model evaluation of the carbon emission trading policies. Then, we have got two main conclusions. One conclusion is that the carbon emissions trading policies positively impact the green innovation of enterprises. However, this impact has industries, regions and enterprises' scale heterogeneity. Another is that China's legislation and m arket mechanisms of the carbon emission trading policies should be strengthened and improved. Based on the above conclusions, some crucial implications are suggested to optimize China's carbon trading policy and green innovation of enterprises.

Keywords

Keywords: Carbon EmissionTrading Policy, Green Innovation, Enterprises, Logic Model

Introduction

As countries strengthen climate commitments, emissions trading systems have become a cornerstone of mitigation policy. Understanding China’s ETS requires attention to institutional context, data quality, and the phased expansion of coverage.

Conclusion

The analysis underscores that market outcomes depend not only on carbon prices but also on allocation stringency and enforcement. Continued monitoring and iterative policy design will be needed to align the ETS with long-term decarbonization goals.

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How to Cite

Han, Ruoqi; Liu, Kai; Wang, Xinyu. Evaluation of China’s Carbon Emission Trading Policy Scheme and Impact Analysis. Journal of Youth Impact. April 2026; 1(Issue 2). DOI: https://doi.org/10.66245/jyi.v1.i2.003