Accelerating the global energy transition through carbon pricing: An ex-post analysis of emissions reduction effects and mechanisms based on international data

Abstract In response to the pressing challenge of global climate change, advancing a low-carbon energy transition has emerged as a key international priority. As an integral policy instrument to guide this transition, carbon pricing is increasingly adopted by countries and regions worldwide. Drawing on a spatial panel model and covering 115 countries, this study investigates the effects of carbon pricing on carbon emission reduction and compares the outcomes between single and composite carbon pricing instruments. The spatial spillover effects of carbon pricing policies exhibit multidimensional heterogeneity. Hybrid carbon pricing policies form a cross-regional emission reduction network through regional synergistic governance mechanisms. In contrast, carbon tax and emissions trading systems (ETS) are associated with the ‘pollution paradise hypothesis’ and the ‘race to the bottom effect’, respectively. Further, it elucidates how different carbon pricing policies leverage unique economic and energy-related mechanisms to facilitate emission abatement. The findings offer important insights for policymakers aiming to optimize carbon pricing schemes that effectively support the global energy transition.