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The impact of new natural gas pipelines on emissions and fuel consumption in China

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  • Xu, Shang
  • Allen Klaiber, H.

Abstract

We examine the impact of constructing a new, large scale natural gas pipeline on environmental outcomes and fuel consumption patterns in China. We use the construction of three natural gas pipelines in China, constructed at different times but operated by the same state-owned enterprise, as a quasi-experiment to estimate the impact of pipeline projects as a driver of changes in air quality. We then estimate the impact of the pipeline on firm and household energy choices providing a mechanism to explain the reductions in air pollution we find. The difference-in-differences estimates indicate that placing the pipeline into operation significantly reduced emission intensity and led to an increase in natural gas intensity and decrease in coal intensity in industrial sectors with more limited impacts on residential energy consumption.

Suggested Citation

  • Xu, Shang & Allen Klaiber, H., 2019. "The impact of new natural gas pipelines on emissions and fuel consumption in China," Resource and Energy Economics, Elsevier, vol. 55(C), pages 49-62.
    • Handle: RePEc:eee:resene:v:55:y:2019:i:c:p:49-62
    DOI: 10.1016/j.reseneeco.2018.10.004
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    2. Lin, Boqiang & Li, Zhensheng, 2021. "Does natural gas pricing reform establish an effective mechanism in China: A policy evaluation perspective," Applied Energy, Elsevier, vol. 282(PA).
    3. Walls, W.D. & Zheng, Xiaoli, 2021. "Environmental regulation and safety outcomes: Evidence from energy pipelines in Canada," Resource and Energy Economics, Elsevier, vol. 64(C).
    4. Gao, Yanyan & Zheng, Jianghuai, 2022. "Clearing the air through pipes? An evaluation of the air pollution reduction effect of China's natural gas pipeline projects," Energy Policy, Elsevier, vol. 160(C).
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    7. Xin Guan & Xiangyi Lu & Yang Wen, 2022. "Is China’s Natural Gas Consumption Converging? Empirical Research Based on Spatial Econometrics," Energies, MDPI, vol. 15(24), pages 1-13, December.

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    More about this item

    Keywords

    Natural gas; Energy infrastructure; Energy consumption; Air quality; Quasi-experiment; China;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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