Does Carbon Emissions Trading Policy Improve Inclusive Green Resilience in Cities? Evidence from China

Abstract

With the impact of external globalization uncertainties and the pressure of internal national environmental policies and markets, maintaining inclusive green resilience while coordinating economic, environmental, and social systems is critical for achieving green and sustainable urban development. We define inclusive green resilience for cities in this research and build a system of inclusive green resilience indicators. The DID model and entropy approach were used to examine the impact of carbon trading policies on inclusive green resilience in 184 representative Chinese cities from 2008 to 2018, and PSM-DID was utilized for further validation. According to the findings of the study, carbon emissions pricing policies can considerably increase inclusive green resilience in cities. Mechanism verification demonstrates that carbon trading programs improve inclusive green resilience in cities through industrial restructuring, technical innovation capability, and employment benefits. According to the city heterogeneity study, the implementation of the carbon emissions trading system has a scale effect and significant urban functional differences, and its impact on inclusive green resilience of cities is greater in large and medium-sized cities and non- resource-based cities. This research offers a new way of thinking about inclusive green resilience as well as empirical data for future sustainable policy development.