14. The Effects of Different Carbon Prices on the International Competitiveness of the Industries Covered by China’s National Carbon Market

The industries covered by the national carbon market refers to the industries included in the national carbon market by competent authorities. The industries covered by China’s national carbon market include the power industry, the petrochemical industry, the chemical industry, the industry of building materials, the iron and steel industry, the nonferrous metal industry, the paper industry, and the aviation industry. The energy-intensive and trade-exposed industries studied in this article are classified in accordance with the standards of the China’s Industrial Classification for National Economic Activities (GB/T 4754-2011). Specifically, these industries are the ferrous metal smelting and pressing industry, the paper manufacturing and paper product manufacturing industry, the petroleum processing, coking and nuclear fuel processing industry, the chemical raw material and chemical product manufacturing industry, the non-metallic mineral product manufacturing industry, and the non-ferrous metal smelting and pressing industry. They are abbreviated to the ferrous metal industry, the paper industry, the petroleum industry, the chemical industry, the non-metallic industry, and the non-ferrous metal industry in the following passage.

The export competitiveness index of each industry refers to the proportion of the relative export scale to the relative production scale of each industry.

The profit margin ratio of each industry refers to the ratio of corporate profits to the total production costs.

Mapping refers to the correspondence that associates carbon prices to the increases in energy prices of an industry.

Control variables include workforce investment, the degree of opening up to the outside world, the degree of capital deepening, the profit margin ratio, and industry R&D investment, etc.

Energy prices of the six industries covered by the national carbon market are calculated based on the weights assigned to prices and consumption of 9 major fuels (coal, coke, crude oil, gasoline, kerosene, diesel, fuel oil, natural gas, and electricity) used by the six industries covered by the national carbon market.

Marginal effect refers to the change in the export competitiveness of each industry covered by the national carbon market when the carbon price changes by 1 unit.

Cumulative effect refers to the total effect of carbon prices on the export competitiveness of each industry covered by the national carbon market when carbon prices are fixed at a certain level. It is the arithmetic addition of the previous marginal effect per unit of carbon price.

The carbon emissions cost refers to the value of carbon dioxide emissions multiplied by the carbon price. Carbon emissions include direct emissions and indirect emissions. Direct emissions refer to the carbon dioxide emissions from the direct combustion of fossil energy sources such as coal, petroleum, natural gas, gasoline, diesel, fuel oil, kerosene, and coke; indirect emissions refer to the carbon dioxide emissions from electricity consumption.

Industrial value added: This article uses prime operating revenue of industrial enterprises above designated size as the substitute indicator.