Can the Implementation of Carbon Emissions Trading Schemes Improve Prefecture-Level Agricultural Green Total Factor Productivity?

This paper investigates the impact of carbon emissions trading schemes (CETSs) on agricultural green total factor productivity (AGTFP) using a multi-temporal DID model. Using Chinese prefecture-level city data collected from 2004 to 2022, we find that CETSs enhance AGTFP through technological innovation, with stronger effects in eastern and western regions and positive spillover to neighboring cities. These findings underscore the significant role of CETSs in influencing agricultural productivity and highlight the various factors that contribute to improving AGTFP.