How does coal consumption constraint policy affect electrical energy efficiency? Evidence from 30 Chinese provinces

Abstract

In recent years, energy efficiency has been considered an extremely cost-effective way to reduce greenhouse gas emissions. China is a country with the world’s largest coal consumption and heavy reliance on thermal power generation. Therefore, the relationship between the coal consumption constraint policy (CCCP) in China and electrical energy efficiency is a topic worthy of study. Based on the panel data of 30 provinces in China during 2005–2016, this paper employs the difference-in-differences (DID) to examine the impact of CCCP on electrical energy efficiency in China. The results indicate that the implementation of the CCCP reduces electrical energy efficiency in the pilot provinces. Based on the mechanism tests, the cost effect outweighs the innovation effect, which is why CCCP decreases electrical energy efficiency. The results of the heterogeneity analysis show that the influence of CCCP is more significant in the provinces with weak law enforcement and small hydropower investment and northern provinces. This study suggests that the Chinese government can promote corporate technological innovation by improving the environmental compensation system and increasing environmental law enforcement to improve electrical energy efficiency. Meanwhile, renewable energy projects should be the focus of future investment. Supplementary Information The online version contains supplementary material available at 10.1007/s12053-022-10023-2.

A statistical examination of the link between environmental performance and legal practices: an evaluation of China’s strategies for residual legislative power allocation

“…Research suggests that carbon trading systems significantly improve energy efficiency and environmental quality in regions with robust environmental law enforcement (Song et al, 2023). The enforcement of coal consumption constraint policy in China was found to reduce electrical energy efficiency in the pilot provinces, especially in provinces with weak law enforcement and small hydropower investment (Xu et al, 2022). The rule-of-law system in China still faces several challenges, such as inadequate legalization of industrial development, a mismatched supporting legal system, and outdated concepts and consciousness of circular economy legalization (Gao et al, 2023).…”