DOES CARBON EMISSION TRADING PROMOTE THE APPLICATION OF PATENTS RELATED TO CLIMATE CHANGE? — EVIDENCE FROM 820,000 PATENTS IN CHINA

Abstract

In order to cope with climate change, many countries and regions implement carbon emission reduction through market transaction and technological innovation. However, there are only few empirical studies on the relationship between these strategies. This paper uses 820,000 pieces of patent application data from 2005 to 2018 in China, and takes the region and time point of whether to implement carbon emissions trading as the demarcation point. It studies the impact of carbon emissions trading on climate change patent application based on the double difference model. The results demonstrate the following: (1) The implementation of carbon trading in China has a negative impact on the quantity and quality of climate change patent application and authorized patents. (2) The application entities and the number of applicants are affected by heterogeneity. Individuals, enterprises and colleges have all been negatively affected, and the negative impact on separate application is greater than that on the cooperative application. In view of this, we propose some suggestions as follows: (1) Various strategies should be designed properly, so that they each have their own emphasis and promote emission reduction in coordination. (2) Different regions adopt different strategies according to their emission reduction targets and their real conditions. (3) It is necessary to enhance public opinion guidance and publicity, and encourage emission reduction through technological innovation. This study can deepen the understanding of the relationship among various emission reduction strategies, and provide reference for the practical work of carbon emission reduction.