Using Firm-Level Adjustment Model to Explore the Spatial Effect of Industrial Water Pollution Regulation

Author(s):  
Nan Zhao ◽  
Yi Liu ◽  
Jining Chen
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)


2007 ◽  
Vol 2 (2) ◽  
Author(s):  
K. Müller

The inspection of sewers can take place whether by means of fixed-intervals in a conventional surface-covering inspection, or by means of need-oriented strategies. Those need-oriented strategies can be differed between a selective inspection, an evaluation of the present sewer condition based on a representative samples and a failure-oriented forecasting strategy. By setting up and implementing a numerical model it is now possible to carry out a comparison between strategies. Herewith, the potential of success from every single strategy concerning different boundary conditions has been evaluated. For larger Sewer Systems a failure-oriented forecasting strategy presents a more reasonable alternative than the conventional surface-covering one. The reason is because the holding time from every sewer in a critical condition can be reduced considerably within this kind of oriented-need inspections compared to the conventional ones. Similarly, this method meets the ability to estimate the whole condition of a sewer for a given term in the minimum time, which usually could not be achieved by a conventional inspection. Oriented-need inspection strategies offer even superior advantages when the crop and the ground water pollution regulation controls have been followed from the beginning, in order to reduce holding times within sewers in a critical class-condition.


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