The Empirical Analysis on the Influence of CO2 Emission Regulation on the Export Transformation of Chinese Manufacturing Industries

Since China has begun to implement stringent CO2 emission regulation, foreign trade competitiveness suffers from great impact. Under fixed emission regulation concerning different emission distribution methods, there exist differences in effects on export competitiveness as well as industrial transformation and upgrading. In this article, based on the bilateral panel data of China and 32 trading partners during 1992 and 2011, model of multiple panel regression is applied to conduct empirical analysis on the influence of CO2 emission regulation. The results show that the enhancement of CO2 emission regulation is conducive to the improvement of the export competitiveness of Chinese manufacturing industries. The results illustrate that average CO2 emission distribution on the basis of unit emission makes the greatest contribution to the export transformation and upgrading of Chinese manufacturing industries, and it is in conformity with development need of Chinese trade at current phase. The innovation of the paper lies in its adoption of bilateral trade data to specifically study the influence of CO2 emission regulation on trade competitiveness.