Emission Reduction Benefits and Economic Benefits of China’s Pilot Policy on Carbon Emission Trading System

Table 5

Results of the instrumental variable.

VAR	First stage		Second stage
	(1)	(2)	(3)	(4)
	TIME × TREAT	TIME × TREAT	CO2	TFP
TIME × IV	0.028	0.028
	(0.006)	(0.006)
TIME × TREAT			−0.210	0.525
			(0.089)	(0.167)
OIS	0.005	0.005	−0.002	0.002
	(0.001)	(0.001)	(0.001)	(0.001)
SI	−0.014	−0.014	0.008	−0.015
	(0.007)	(0.007)	(0.004)	(0.007)
FDI	−0.027	−0.027	−0.045	0.054
	(0.032)	(0.032)	(0.014)	(0.026)
OPEN	−0.010	−0.010	−0.004	−0.012
	(0.003)	(0.003)	(0.002)	(0.003)
EDU	−0.050	−0.050	0.046	−0.039
	(0.028)	(0.028)	(0.014)	(0.026)
CONS	0.002	0.002	8.088	2.816
	(0.401)	(0.401)	(0.174)	(0.329)
PROV	YES	YES	YES	YES
YEAR	YES	YES	YES	YES
N	300	300	300	300
R^2	0.652	0.652	0.988	0.799