Impact of GHG Ets on Industrial Effluent Discharge in the Pearl River Delta

This study analyzes the impact of GHG ETS (Greenhouse Gas Emissions Trading Scheme) on industrial effluent discharge by comparing data from the two largest deltas in China from 2008-2019. A partial equilibrium model is developed to explain the mechanism of action of GHG ETS on industrial effluent discharge shocks. The empirical results confirm the model conclusion that, contrary to the impact of GHG ETS on air pollutants, the implementation of GHG ETS significantly increases the total regional industrial effluent emissions and industrial effluent emissions per unit of output