Abatement costs of combatting industrial water pollution: convergence across Chinese provinces

Author(s):  
Huiming Xie ◽  
Xiaopeng Wang ◽  
Manhong Shen ◽  
Chu Wei
2017 ◽  
Vol 21 ◽  
pp. 26-37 ◽  
Author(s):  
Asha Gunawardena ◽  
Atakelty Hailu ◽  
Ben White ◽  
Ram Pandit

2021 ◽  
Vol 13 (1) ◽  
pp. 151-183
Author(s):  
Ji Qi ◽  
Xin Tang ◽  
Xican Xi

We argue that misallocation across firms amplifies industrial water pollution by distorting the firm size distribution in China. Firm-level data indicate that larger firms are more likely to use clean technology but face higher distortions. In a heterogeneous firms model with an endogenous choice of pollution treatment technologies, we show that distortions that increase with firm-level TFP lower the adoption of clean technology, amplify aggregate pollution intensity, and lower aggregate output. Quantitatively, eliminating these correlated distortions would increase output by 30 percent and decrease pollution by 20 percent. Meanwhile, environmental regulations have sizable impact on pollution but limited effects on aggregate output. (JEL O13, O14, P28, P31, Q52, Q53, Q58)


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