The Impact of the Establishment of the Carbon Trading Market in China

ASM Sc. J., 20(2), 2025

Published on July 25, 2025

https://doi.org/10.32802/asmscj.2025.1988

Author: Leong Wai Yie and Huang Guang Nan

Abstract

Carbon emission trading has become the main method for global governance of greenhouse gas emissions, covering about 23% of global emissions. As climate issues become increasingly serious, countries or regions seek a balance between profits and environmental protection and formulate strict emission policies. Carbon emission trading not only affects the environment, but also has a significant impact on global trade, promoting green innovation and low-carbon transformation of Chinese companies. This paper compares four models and uses the model in Wang and Ren's article for regression analysis. The results show that the establishment of a carbon trading market has significantly suppressed China's exports of high-polluting products but promoted the export of green products and driven the green transformation of enterprises. It is also proposed that China should gradually improve the carbon trading market, establish a legal system and trading system, promote the green transformation of products, accelerate the green and low-carbon transformation of enterprises, deepen the influence of the international carbon market, and promote the development of global low-carbon undertakings.

Keywords: carbon market, carbon trading, climate action, Regression Model