Environmental Regulation and Industry Dynamics

In this study, we consider the sulfur dioxide emissions trading pilot scheme (SETPS) of China, with pilot provinces as the treatment group and other provinces as the control group. We employ the difference-in-differences method to estimate the effects of the SETPS on pollution mitigation and economic growth. Results show that the SETPS plays a robust role both in China’s industrial sulfur dioxide abatement and in economic growth. Furthermore, by applying regression analysis to explore regional heterogeneity, we find that it has a stronger effect on industrial sulfur dioxide reduction in the Central China than it does in the Eastern and Western China, and it also exerts a positive influence on economic growth in the Western China. Moreover, a time-trend analysis indicates that the pollution reduction effect of the SETPS has decreased, while the economic growth effect has slightly increased since 2007.

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“…55 Fourth, environmental regulations may create new demand, particularly for products related to pollution monitoring and control. 56…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental and economic effects of sulfur dioxide emissions trading pilot scheme in China: A quasi-experiment

Gao

Guo

et al. 2019

Energy & Environment

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“…The level of regulation is exogenously fixed and constant in time. A company's compliance costs at any given time depend on its current output, accumulated past investments and the level of regulation (Sengupta 2010).…”

Section: Analysis Of the Literaturementioning

confidence: 99%

Combined model of optimal electricity production: evidence from Ukraine

Halynska¹,

Бондар²,

Yatsenko³

et al. 2022

Polityka Energetyczna – Energy Policy Journal

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The article proposes a methodology for the formation of a combined model of the equilibrium values of pricing and the volume of electricity production, taking into account green and traditional sources of electricity production on the example of Ukraine. In accordance with the projected price and volume of electricity production in 2021, a model for redistributing electricity sources were considered, taking into account the minimization of budgetary resources and the risk of electricity production with appropriate restrictions in the production of various types of electricity and their impact on minimizing the price for the end user. The studies have shown that important factors in the formation of electricity prices are indicators of the cost and volume of production, distribution and transportation of electricity to consumers, which largely depends on the formation and further development of the energy market in Ukraine. Also, the redistribution of the volumes of traditional and non-traditional electricity in the common 40 "pot" is of great importance while minimizing risks and budgetary constraints. Balancing the system for generating electricity from various sources will help not only optimize long-term electricity prices and minimize tariffs for the end user, but also allow planning profit in the form of long-term market return on investment. The analysis of the results showed that the optimal distribution of energy production makes it possible to obtain energy resources in the required volume with lower purchase costs and with minimal risk.

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“…Recently, Sengupta (2008) shows in a two-period model that an exogenous environmental regulation imposed on a competitive industry induces ex ante identical firms to undertake investment in order to reduce their future cost of regulatory compliance. This, in turn, generates inter-firm heterogeneity and shake-out of firms over an equilibrium dynamic path.…”

Section: Technological Innovationmentioning

confidence: 99%