Analysis of the carbon emission reduction mechanism in the textile industry under the dual control of carbon emissions and carbon trading prices

Abstract: The textile industry, as a high-energy consumption and high-emission traditional sector, faces significant challenges in its emission reduction efforts. This paper, based on the dual control targets for carbon emissions, employs a panel regression model to empirically examine the impact of carbon trading prices in China’s pilot carbon markets on carbon emissions and carbon emission intensity in the textile industry. The paper also explores the role of energy structure and energy efficiency in this process through a mediation effect model. The findings reveal that carbon trading prices have a significant negative impact on carbon emission intensity in the textile industry, with every 1% rise in carbon trading prices leading to a 0.005% drop in carbon emission intensity, while their effect on overall carbon emissions is comparatively weaker. Further analysis indicates that energy efficiency plays a fully mediating role in promoting carbon emission reductions, whereas adjustments to the energy structure have only a partial mediating effect. The study suggests that there should be substantial development of carbon trading markets, improvement of the price formation mechanism, and enhancement of energy efficiency through technological innovation and management optimisation, thereby facilitating the green and low-carbon transformation of the textile industry. This would provide policy recommendations and practical guidance for achieving the dual control targets for carbon emissions.