Direct and Spatial Effects of Carbon Emission Trading System on Carbon Emissions in the Logistics Sector—Evidence From the Yangtze River Economic Belt in China

ABSTRACT As a pivotal industry requiring immediate energy conservation and carbon reduction, can the carbon emissions trading system (CETS) effectively mitigate carbon emissions in the logistics sector (LS)? Utilizing panel data from provinces and cities along the Yangtze River Economic Belt (YREB) from 2009 to 2022, a difference in differences (DID) model and a spatial econometric model are adopted to empirically examine the influence of the CETS on the carbon emissions of the LS. The study reveals that the implementation of the CETS leads to a substantial reduction in carbon emissions within the LS. This inhibitory effect is more pronounced in the sub‐sample of medium and small‐population provinces and cities with limited environmental protection inputs. Technological innovation and financial support emerge as the primary mechanisms through which the CETS effectively reduces carbon emissions within the LS. In addition, digital economy positively influences the CETS in reducing carbon emissions within the LS. Regarding spatial implications, the CETS exhibits a notable spatial spillover effect, effectively lowering not only carbon emissions from the local LS but also those of neighboring provinces and cities.