Low-carbon governance, fiscal decentralization and sulfur dioxide emissions: Evidence from a quasi-experiment with Chinese heavy pollution enterprises

This paper investigates the effects of enterprise environmental governance under low-carbon pilot policies in China with a difference in differences (DID) design. In examining the development of these policies, we focus on exploring their effects on sulfur dioxide emissions of heavily polluting enterprises based on prefectural city- and firm-level data from 2003-2014. Overall, the policies significantly increased enterprise SO2 emissions, and the underlying reason being that investments in CO2 control crowded out investment in SO2 control in enterprises in low-carbon pilot regions. We also find that the implementation of low-carbon pilot policies resulted in greater SO2 emissions from state-owned enterprises and enterprises in western regions than from non-state-owned enterprises and those in eastern regions. It is further found that fiscal decentralization and the associated mediating effect of market segmentation promote enterprises' CO2 control and inhibit their SO2 control. This study helps us re-examine the overall environmental effects of low-carbon policies and has implications for the revision and improvement of environmental governance policies in developing countries.

Does Green Credit Policy Move the Industrial Firms Toward a Greener Future? Evidence From a Quasi-Natural Experiment in China

How to utilize financial instrument to deal with environmental issues has been a focal topic. Taking the introduction of green credit program as a “quasi-natural experiment,” the propensity score matching and difference-in-difference approach (PSM-DID) are used to investigate the impact of the green credit policy implemented by Chinese government on firm-level industrial pollutant emissions. The estimation results indicate that the green credit policy significantly reduces corporate sulfur dioxide emissions. Heterogeneity analysis shows this impact is more pronounced for large-scale enterprises and enterprises located in the eastern region. The estimated mediation models reveal that after the implementation of the green credit policy, reduction in sulfur dioxide emissions can be attribute to the increased environmental investment and improved energy consumption intensity. Moreover, the green credit policy is also significantly effective in mitigating the discharge of other common industrial pollutants. Our findings highlight the importance of green credit policies in achieving greener industrial production and more sustainable economic development.

Air Pollution and Trade: The Case of China

We estimate the effects of trade on air pollution in China. To address endogeneity concerns, we use an instrumental variable strategy that treats the Great Recession as an exogenous shock that differentially affected China’s coastal provinces, which export a greater volume of manufacturing as they are closer to navigable waters. In our empirical analysis, we employ annual data on emissions of sulfur dioxide as well as smoke and dust at the province level from 2003 to 2015 to measure air pollution intensity (the ratio of air pollution to GDP), and we also use fine particulate matter (PM2.5) concentrations data derived from satellite imagery as a robustness check. We find that a decrease in trade intensity (the ratio of trade to GDP) by 10 percentage points (a negative trade shock similar to what occurred during the Great Recession) increases sulfur dioxide emissions intensity by about 38 percentage points. Emissions of the other two air pollutants grow by similar proportions.

Atmospheric Emissions in Ports Due to Maritime Traffic in Mexico

Atmospheric emissions from vessels at 38 Pacific and Gulf-Caribbean Mexican ports were determined for nitrogen oxides, sulfur dioxide, particulates, carbon monoxide, non-methane volatile organic compounds, and carbon dioxide. The emissions have been estimated using a bottom-up methodology in the maneuver and hoteling phases, by vessel type, from 2005 to 2020. Maritime traffic in Mexico’s Pacific zone contributes approximately with 60% of the country’s total ship emissions, with the remaining 40% in Gulf-Caribbean ports. The highest atmospheric emissions were found at the Manzanillo and Lázaro Cárdenas ports on the Pacific coast, as well as the Altamira and Veracruz ports on the Gulf-Caribbean coast. The contribution of the atmospheric emissions by vessel type at Pacific ports was Container 67%, Bulk Carrier 32%, Tanker 0.8%, and RoRo 0.4%. For Gulf-Caribbean ports it was Container 76%, Bulk Carrier 19%, Tanker 3%, and RoRo 2%. This study incorporates the International Maritime Organization implementations on reductions of sulfur content in marine fuel, from 4.5% mass by mass from 2005 to 2011, to 3.5% from 2012 to 2019, to 0.5% beginning in 2020. Overall, sulfur dioxide emissions were reduced by 89%.

Energy Costs of Reducing Industrial Sulfur Dioxide Emissions in China

With increasing environmental pollution, China has instituted corresponding environmental regulations to address environmental challenges. Estimating the costs of such environmental regulations can help governments to formulate rational environmental policies. This review estimates the costs of environmental regulations based on a novel perspective of energy consumption. Using panel data for Chinese provincial regions in 2006–2015, we developed a non-parametric directional distance function and estimated different optimal energy inputs based on data envelopment analysis under two scenarios, namely, those with and without emission reduction constraints. The gap between the two groups of optimal energy inputs facilitated the estimation of the energy costs associated with reducing SO2 (sulfur dioxide) emissions in China’s industrial sectors. The results suggest that approximately 13.40 tons of standard coal were required to reduce SO2 emissions by 1 ton, highlighting the discrepancy between energy savings and emission reduction. The energy costs of SO2 emission reduction were the highest in West China (18.63), followed by those in Central and Northeast China; meanwhile, those in East China were the lowest (9.91). The large differences between the energy costs of emission reduction in different regions indicated that economically underdeveloped areas have scope for improvement with respect to energy structures and innovation in the green technology field.

A Dynamic Analysis of Air Pollution: Implications of Economic Growth and Renewable Energy Consumption

This paper examines how economic growth and renewable energy consumption are associated with air pollution using a dynamic panel approach. Focusing on several major air pollutants, namely, particulate matter, sulfur dioxide, nitrogen oxide, and carbon monoxide, this paper tests the environmental Kuznets hypothesis and determines whether the use of renewable energy sources contributes to a reduction in air pollution. Data from a balanced panel of 145 countries for the period between 2000 and 2014 was used for the estimation of the dynamic panel model. The results of the dynamic panel model showed inverted U-shaped curves for the relationship between economic development and particulate matter and sulfur dioxide emissions. The results also revealed that increasing renewable energy consumption contributes to an improvement in air quality. Moreover, it was found that urbanization tends to decrease sulfur dioxide and nitrogen oxide emissions, while trade openness reduces particulate matter and carbon monoxide emissions but increases sulfur dioxide emissions.

Comparable sulfate climate impacts by consumption of developed and developing countries

Regional consumption activities supported by domestic production and international trade have led to substantial amounts of aerosols worldwide, yet the resulting impacts on the global climate system remains unknown. Here we quantify for the first time the climate response to aerosols associated with consumption by developing and developed countries, by integrating a most current-generation fully coupled Earth system model, a recent multi-regional input-output table and an updated emission inventory used for climate change assessment. We find that although consumption associated sulfur dioxide emissions of developed countries are only 60% of those of developing countries, they lead to comparable impacts on the global mean surface air temperature (-0.20±0.09 versus -0.18±0.11 K; with 2 standard deviations) and precipitation (-0.017±0.017 versus -0.019±0.019 mm/day). This is because the emissions of developed countries and resulting forcing are more evenly distributed zonally and located at higher latitudes than the emissions of developing countries. Emissions of both developing and developed countries strongly cool the Northern Hemisphere and cause southward movement of the Intertropical Convergence Zone, while emissions of developing countries have stronger temperature and precipitation impacts over the tropical monsoon regions of China and India. This work serves as the first step of a comprehensive assessment of consumption associated climate impacts in support of global concerted action towards sustainable consumption and stabilized climate.