Frontiers in Energy Research (Oct 2024)

Analysis of China’s carbon financial Development’s impact on reducing emissions using the BCC and Malmquist models

  • Li Chunzhe,
  • Ding Xueyuan,
  • Meng Tao,
  • Xu Libo,
  • Fu Haibo,
  • Liu Gang,
  • Pan Sihang,
  • Liu Jiarong,
  • Ge Zeqi

DOI
https://doi.org/10.3389/fenrg.2024.1450270
Journal volume & issue
Vol. 12

Abstract

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This study evaluates the impact of China’s carbon finance development on carbon emission reduction and its role in promoting low-carbon economic growth. We construct an evaluation index system and employ Systematic Cluster Analysis (SCA) and Data Envelopment Analysis (DEA) methods to analyze the carbon finance markets in five representative Chinese provinces (autonomous regions). Utilizing the DEA-BCC model and DEA-Malmquist index, we conducted an in-depth analysis of the carbon emission reduction effects between 2022 and 2023. Our findings reveal that while China’s carbon finance development significantly contributes to carbon emission reduction, there are considerable regional disparities in effectiveness. Beijing and Guangdong achieved DEA efficiency, whereas Jilin, Ningxia, and Xinjiang experienced efficiency losses, suggesting a need for structural optimization. The study provides insights into challenges and potential improvements in China’s carbon finance sector and offers policy recommendations for enhancing market mechanisms, technological innovation, and social engagement to support China’s carbon peak and neutrality goals.

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