Do Emission Trading and Subsidies for Clean-technology R & D Improve the Level of Clean-technology Innovation? Evidence from the Pilot Provinces of Industrial SO<sub>2</sub> Emission Trading

Liu Haiying; Xie Jianzheng

doi:doi:10.16538/j.cnki.jsufe.2016.05.007

Abstract

The existing environment regulation in China places emphasis on the intervention on the enterprises as the demanders of clean-technology,but neglects the guidance of clean-technology R & D. This paper combines emission trading playing a role in enterprises with subsidies for clean-technology R & D guiding R & D directions,and constructs a theory model to explore whether the combination of these two is conducive to the improvement of cleantechnology level. Then it uses the data from pilot provinces of industrial SO₂ emission trading to empirically test the theory model. It arrives at the conclusions as follows:firstly,industrial SO₂ emission trading elevates the clean-technological innovation level in pilot provinces,which is in consistent with the conclusions of the theory model;secondly,emission trading policy in pilot provinces cannot result in emissions reduction,which is out of accord with the conclusions of the theory model;thirdly,only a combination of subsidies for clean-technology R & D and emission trading can exert the policy effects fully;fourthly,the subsidies for clean-technology R & D have the double-level threshold effect on corresponding R & D input and as for subsidies,it is really not the more,the better. Therefore,in order to improve clean-technology innovation level in China, governments should pay attention to environmental regulation matching and control the subsidy strength properly.