Trade Liberalization and Carbon Neutralization: A Quasi-Natural Experiment Based on China-ASEAN Free Trade Area

Abstract

Reducing greenhouse gas emissions and achieving carbon neutrality are the environmental goals of all countries in the world. Taking 45 countries in Asia from 2000 to 2021 as a sample, this paper studies the impact of China-ASEAN Free Trade Area on greenhouse gas emissions of all countries, and empirically tests whether trade liberalization contributes to achieving carbon neutrality. The study found that the establishment of China-ASEAN Free Trade Area can effectively curb greenhouse gas emissions, especially in economically and technologically backward countries. In addition, with the tightening of environmental regulations, the promotion of trade liberalization on greenhouse gas emission reduction has been strengthened. On the whole, trade liberalization can help to achieve the goal of carbon neutrality.