Regional differences in carbon trading prices and their spatially driven mechanisms: evidence from China

With ecological civilization becoming an increasingly high profile topic, terms such as carbon neutrality and carbon markets have entered the research landscape. Carbon prices are the core of carbon markets. After analyzing the eight carbon trading markets in China, this paper finds that carbon prices are poorly balanced, i.e., they vary widely between pilots. Regional carbon prices show a discrete distribution, and regions with better carbon market development do not have a spatial demonstration effect on neighboring regions. Therefore, in the initial stage of China's unified carbon trading market, the mandatory control threshold amount should be lowered to allow more enterprises can participate in emission reduction. Reliance on nonclean energy should be weakened, investment in environmental protection and emission reduction should be strengthened, the proportion of carbon offset in forestry should be increased, and a carbon tax should be gradually introduced. The paper's overall aim is to bridge regional barriers and narrow differences to achieve a smooth transition from pilot regions to national and global carbon markets.