Do carbon emissions trading pilot policies contribute to urban green transportation development?

The Carbon Emissions Trading (CET) pilot policy represents a significant effort to promote green development. Existing research has focused on the policy's effects on the environment, economy, or the innovation capacity of enterprises, while relatively few studies have explored its impact on the green transportation development level (GTDL). To fill the gap, this study examines the impact of the CET pilot policy on GTDL using panel data from 30 Chinese cities from 2011 to 2020. First, a framework for evaluating GTDL was established, and the propensity score matching (PSM) method was then used to empirically assess the policy's effects. The results indicate that GTDL remained low throughout the decade, underscoring significant potential for improvement. Overall, the CET pilot policy significantly enhances GTDL in China. It has a substantial impact on both the eastern and central-western regions of China, while regional differences are observed in high and low latitude regions.