Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach
Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for...
Ausführliche Beschreibung
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| Autor*in: |
Lin, Chu [verfasserIn] |
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| Format: |
E-Artikel |
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| Sprache: |
Englisch |
| Erschienen: |
2021transfer abstract |
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| Schlagwörter: |
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| Übergeordnetes Werk: |
Enthalten in: Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality - Ren, Chunhui ELSEVIER, 2022, Amsterdam [u.a.] |
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| Übergeordnetes Werk: |
volume:290 ; year:2021 ; day:15 ; month:07 ; pages:0 |
| Links: |
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| DOI / URN: |
10.1016/j.jenvman.2021.112367 |
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ELV054125812 |
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| 245 | 1 | 0 | |a Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach |
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| 520 | |a Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. | ||
| 520 | |a Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. | ||
| 650 | 7 | |a Coal-fired power industry |2 Elsevier | |
| 650 | 7 | |a China |2 Elsevier | |
| 650 | 7 | |a Economic-incentive policy |2 Elsevier | |
| 650 | 7 | |a Electricity price subsidy |2 Elsevier | |
| 650 | 7 | |a NOX emissions |2 Elsevier | |
| 650 | 7 | |a Difference-in-differences model |2 Elsevier | |
| 700 | 1 | |a Shao, Shuai |4 oth | |
| 700 | 1 | |a Sun, Wei |4 oth | |
| 700 | 1 | |a Yin, Hua |4 oth | |
| 773 | 0 | 8 | |i Enthalten in |n Elsevier |a Ren, Chunhui ELSEVIER |t Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality |d 2022 |g Amsterdam [u.a.] |w (DE-627)ELV008002754 |
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10.1016/j.jenvman.2021.112367 doi /cbs_pica/cbs_olc/import_discovery/elsevier/einzuspielen/GBV00000000001630.pica (DE-627)ELV054125812 (ELSEVIER)S0301-4797(21)00429-1 DE-627 ger DE-627 rakwb eng 300 VZ 70.00 bkl 71.00 bkl Lin, Chu verfasserin aut Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach 2021transfer abstract nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Coal-fired power industry Elsevier China Elsevier Economic-incentive policy Elsevier Electricity price subsidy Elsevier NOX emissions Elsevier Difference-in-differences model Elsevier Shao, Shuai oth Sun, Wei oth Yin, Hua oth Enthalten in Elsevier Ren, Chunhui ELSEVIER Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality 2022 Amsterdam [u.a.] (DE-627)ELV008002754 volume:290 year:2021 day:15 month:07 pages:0 https://doi.org/10.1016/j.jenvman.2021.112367 Volltext GBV_USEFLAG_U GBV_ELV SYSFLAG_U 70.00 Sozialwissenschaften allgemein: Allgemeines VZ 71.00 Soziologie: Allgemeines VZ AR 290 2021 15 0715 0 |
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10.1016/j.jenvman.2021.112367 doi /cbs_pica/cbs_olc/import_discovery/elsevier/einzuspielen/GBV00000000001630.pica (DE-627)ELV054125812 (ELSEVIER)S0301-4797(21)00429-1 DE-627 ger DE-627 rakwb eng 300 VZ 70.00 bkl 71.00 bkl Lin, Chu verfasserin aut Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach 2021transfer abstract nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Coal-fired power industry Elsevier China Elsevier Economic-incentive policy Elsevier Electricity price subsidy Elsevier NOX emissions Elsevier Difference-in-differences model Elsevier Shao, Shuai oth Sun, Wei oth Yin, Hua oth Enthalten in Elsevier Ren, Chunhui ELSEVIER Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality 2022 Amsterdam [u.a.] (DE-627)ELV008002754 volume:290 year:2021 day:15 month:07 pages:0 https://doi.org/10.1016/j.jenvman.2021.112367 Volltext GBV_USEFLAG_U GBV_ELV SYSFLAG_U 70.00 Sozialwissenschaften allgemein: Allgemeines VZ 71.00 Soziologie: Allgemeines VZ AR 290 2021 15 0715 0 |
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10.1016/j.jenvman.2021.112367 doi /cbs_pica/cbs_olc/import_discovery/elsevier/einzuspielen/GBV00000000001630.pica (DE-627)ELV054125812 (ELSEVIER)S0301-4797(21)00429-1 DE-627 ger DE-627 rakwb eng 300 VZ 70.00 bkl 71.00 bkl Lin, Chu verfasserin aut Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach 2021transfer abstract nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Coal-fired power industry Elsevier China Elsevier Economic-incentive policy Elsevier Electricity price subsidy Elsevier NOX emissions Elsevier Difference-in-differences model Elsevier Shao, Shuai oth Sun, Wei oth Yin, Hua oth Enthalten in Elsevier Ren, Chunhui ELSEVIER Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality 2022 Amsterdam [u.a.] (DE-627)ELV008002754 volume:290 year:2021 day:15 month:07 pages:0 https://doi.org/10.1016/j.jenvman.2021.112367 Volltext GBV_USEFLAG_U GBV_ELV SYSFLAG_U 70.00 Sozialwissenschaften allgemein: Allgemeines VZ 71.00 Soziologie: Allgemeines VZ AR 290 2021 15 0715 0 |
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10.1016/j.jenvman.2021.112367 doi /cbs_pica/cbs_olc/import_discovery/elsevier/einzuspielen/GBV00000000001630.pica (DE-627)ELV054125812 (ELSEVIER)S0301-4797(21)00429-1 DE-627 ger DE-627 rakwb eng 300 VZ 70.00 bkl 71.00 bkl Lin, Chu verfasserin aut Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach 2021transfer abstract nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Coal-fired power industry Elsevier China Elsevier Economic-incentive policy Elsevier Electricity price subsidy Elsevier NOX emissions Elsevier Difference-in-differences model Elsevier Shao, Shuai oth Sun, Wei oth Yin, Hua oth Enthalten in Elsevier Ren, Chunhui ELSEVIER Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality 2022 Amsterdam [u.a.] (DE-627)ELV008002754 volume:290 year:2021 day:15 month:07 pages:0 https://doi.org/10.1016/j.jenvman.2021.112367 Volltext GBV_USEFLAG_U GBV_ELV SYSFLAG_U 70.00 Sozialwissenschaften allgemein: Allgemeines VZ 71.00 Soziologie: Allgemeines VZ AR 290 2021 15 0715 0 |
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10.1016/j.jenvman.2021.112367 doi /cbs_pica/cbs_olc/import_discovery/elsevier/einzuspielen/GBV00000000001630.pica (DE-627)ELV054125812 (ELSEVIER)S0301-4797(21)00429-1 DE-627 ger DE-627 rakwb eng 300 VZ 70.00 bkl 71.00 bkl Lin, Chu verfasserin aut Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach 2021transfer abstract nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. Coal-fired power industry Elsevier China Elsevier Economic-incentive policy Elsevier Electricity price subsidy Elsevier NOX emissions Elsevier Difference-in-differences model Elsevier Shao, Shuai oth Sun, Wei oth Yin, Hua oth Enthalten in Elsevier Ren, Chunhui ELSEVIER Cohort, signaling, and early-career dynamics: The hidden significance of class in black-white earnings inequality 2022 Amsterdam [u.a.] (DE-627)ELV008002754 volume:290 year:2021 day:15 month:07 pages:0 https://doi.org/10.1016/j.jenvman.2021.112367 Volltext GBV_USEFLAG_U GBV_ELV SYSFLAG_U 70.00 Sozialwissenschaften allgemein: Allgemeines VZ 71.00 Soziologie: Allgemeines VZ AR 290 2021 15 0715 0 |
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Can the electricity price subsidy policy curb NOX emissions from China's coal-fired power industry? A difference-in-differences approach |
| abstract |
Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. |
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Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. |
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Air pollution currently poses a serious threat to human health and sustainable development in China. In an attempt to reduce nitrogen oxides (NOX) emissions which are the major anthropogenic contributors to air pollution, China initiated an electricity price subsidy (EPS) policy in November 2011 for incentivizing coal-fired power plants to install denitrification units. However, the effectiveness of the policy in the reduction of NOX emissions and its sustainability are yet to be investigated. This study attempts to examine the effects of the EPS policy on NOX emissions and NOX removal, based on a panel-data set covering 113 prefectural-level cities in China during 2008–2015. Using a difference-in-differences (DID) regression model, we find that for each additional power plant in cities, the EPS policy significantly reduces NOX emissions by 1.1% and increases NOX removal by 2.8%. Furthermore, the results reveal that the overall effect of the EPS policy shows a positive trend with time accompanied by an increase in price subsidy, indicating that the efficacy of the policy designed for the reduction of harmful air pollutants is sustainable. In particular, we confirm that compensating for the construction and operation costs of denitrification units is an effective mechanism which encourages the coal-fired power plants to invest more in such units. The findings of the study accentuate the significant implication that economic-incentive policies play a crucial role in combating air pollution and environmental degradation. |
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