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Coordination or contradiction: Evidence from water and air pollution regulation in China

Author

Listed:
  • Huang, Yumeng
  • Jiang, Mingdong
  • Bai, Yang
  • Zhao, Pujie
  • Wang, Qi

Abstract

Using a difference-in-differences strategy, we study the effects of simultaneous water and air pollution regulation on firms' emission behaviors and explore the driving forces behind their responses. It is found that in China's eleventh Five-Year Plan, there exists a contradiction between chemical oxygen demand (COD) and sulfur dioxide (SO2) regulation. We divide emissions into output and emission intensity to explore the underlying mechanisms and explain the regulatory interaction effects from perspectives of source prevention and end-of-pipe treatment. Also, we examine heterogeneous effects across firm size, firm age, and manufacturing agglomeration. Overall, this paper reveals whether coordination or contradiction exists among environmental regulation at the firm level, providing implications for policymaking and policy synergy.

Suggested Citation

  • Huang, Yumeng & Jiang, Mingdong & Bai, Yang & Zhao, Pujie & Wang, Qi, 2023. "Coordination or contradiction: Evidence from water and air pollution regulation in China," Energy Economics, Elsevier, vol. 127(PB).
    • Handle: RePEc:eee:eneeco:v:127:y:2023:i:pb:s0140988323005467
    DOI: 10.1016/j.eneco.2023.107048
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