IDEAS home Printed from https://ideas.repec.org/p/een/ccepwp/1414.html
   My bibliography  Save this paper

Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China

Author

Listed:
  • Shuai Gao

    (State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), and School of Environment, Tsinghua University)

  • Wenjia Cai

    (Ministry of Education Key Laboratory for Earth System Modeling, Center for Earth System Science, Tsinghua University)

  • Wenling Liu

    (State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), and School of Environment, Tsinghua University)

  • Can Wang

    (State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), and School of Environment, Tsinghua University)

  • ZhongXiang Zhang

    (School of Economics, Fudan University)

Abstract

Understanding companies' preferences for various domestic policy instruments is crucial to designing and planning Sectoral Market Mechanism (SMM) in China. Based on a detailed overview of domestic policy instruments under SMM, this paper evaluates corporate preferences for diverse domestic policy instruments and identifies potential influencing factors through econometric analysis. The data were collected from 113 respondents in all 11 prefecture-level cities of Shanxi province, China. Regarding policy instruments under the system of government receiving tradable units, corporate energy saving potential, learning capacity and companies' characteristics have shown significant influences on companies' preferences. Dissemination and the popularization of knowledge are also important to help companies learn how to improve energy efficiency. In terms of policy measures with voluntary installation-level targets, corporate competition level, organizational size and ownership are the main factors influencing companies' preferences. Reducing inequality in the distribution of responsibility is especially important to gain companies' support. Under the policy with mandatory installation-level targets, it suggests that policymakers should focus on status of energy use management and internationalization orientation. Policy instruments familiar to companies that are able to relieve corporate financial pressures might be good options to gain higher acceptance. Moreover, our results show that it is very important to choose an issuance frequency of one to three years under sectoral crediting.

Suggested Citation

  • Shuai Gao & Wenjia Cai & Wenling Liu & Can Wang & ZhongXiang Zhang, 2014. "Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China," CCEP Working Papers 1414, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:1414
    as

    Download full text from publisher

    File URL: https://ccep.crawford.anu.edu.au/sites/default/files/publication/ccep_crawford_anu_edu_au/2014-08/ccep1414.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hettige, Hemamala & Huq, Mainul & Pargal, Sheoli & Wheeler, David, 1996. "Determinants of pollution abatement in developing countries: Evidence from South and Southeast Asia," World Development, Elsevier, vol. 24(12), pages 1891-1904, December.
    2. ZhongXiang Zhang, 2014. "Energy Prices, Subsidies and Resource Tax Reform in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(3), pages 439-454, September.
    3. Zhang, ZhongXiang, 2010. "China in the transition to a low-carbon economy," Energy Policy, Elsevier, vol. 38(11), pages 6638-6653, November.
    4. Zhang, ZhongXiang, 2014. "Programs, Prices and Policies Towards Energy Conservation and Environmental Quality in China," Working Papers 249427, Australian National University, Centre for Climate Economics & Policy.
    5. Gruber, Edelgard & Brand, Michael, 1991. "Promoting energy conservation in small and medium-sized companies," Energy Policy, Elsevier, vol. 19(3), pages 279-287, April.
    6. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    7. André Aasrud & Richard Baron & Barbara Buchner & Kevin McCall, 2009. "Sectoral Market Mechanisms: Issues for Negotiation and Domestic Implementation," OECD/IEA Climate Change Expert Group Papers 2009/5, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. ZhongXiang Zhang, 2017. "Are China's climate commitments in a post‐Paris agreement sufficiently ambitious?," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 8(2), March.
    2. Zhang, ZhongXiang, "undated". "Making China the transition to a low-carbon economy: Key challenges and responses," Working Papers 249516, Australian National University, Centre for Climate Economics & Policy.
    3. Zhang, ZhongXiang, 2014. "Programs, Prices and Policies Towards Energy Conservation and Environmental Quality in China," Working Papers 249427, Australian National University, Centre for Climate Economics & Policy.
    4. ZhongXiang Zhang, 2016. "Making the Transition to a Low-Carbon Economy: The Key Challenges for China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(2), pages 187-202, May.
    5. Zhongxiang Zhang, 2018. "Energy price reform in China," CCEP Working Papers 1805, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    6. Fotios Misopoulos & Roula Michaelides & Mohammad Afiq Salehuddin & Vicky Manthou & Zenon Michaelides, 2018. "Addressing Organisational Pressures as Drivers towards Sustainability in Manufacturing Projects and Project Management Methodologies," Sustainability, MDPI, vol. 10(6), pages 1-28, June.
    7. Xianbing Liu & Jie Yang & Sixiao Qu & Leina Wang & Tomohiro Shishime & Cunkuan Bao, 2012. "Sustainable Production: Practices and Determinant Factors of Green Supply Chain Management of Chinese Companies," Business Strategy and the Environment, Wiley Blackwell, vol. 21(1), pages 1-16, January.
    8. Chin‐jung Luan & Chengli Tien & Pei‐hua Wu, 2013. "Strategizing Environmental Policy and Compliance for Firm Economic Sustainability: Evidence from Taiwanese Electronics Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 22(8), pages 517-546, December.
    9. Zhai, Jihua & Burke, Ian T. & Stewart, Douglas I., 2021. "Beneficial management of biomass combustion ashes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    10. Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    11. Bárbara Galleli & Elder Semprebon & Joyce Aparecida Ramos dos Santos & Noah Emanuel Brito Teles & Mateus Santos de Freitas-Martins & Raquel Teodoro da Silva Onevetch, 2021. "Institutional Pressures, Sustainable Development Goals and COVID-19: How Are Organisations Engaging?," Sustainability, MDPI, vol. 13(21), pages 1-21, November.
    12. Thollander, Patrik & Kimura, Osamu & Wakabayashi, Masayo & Rohdin, Patrik, 2015. "A review of industrial energy and climate policies in Japan and Sweden with emphasis towards SMEs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 504-512.
    13. Stua, Michele, 2013. "Evidence of the clean development mechanism impact on the Chinese electric power system's low-carbon transition," Energy Policy, Elsevier, vol. 62(C), pages 1309-1319.
    14. Nigel Martin & John Rice, 2010. "Analysing emission intensive firms as regulatory stakeholders: a role for adaptable business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 19(1), pages 64-75, January.
    15. Zhang, Ruirui & Wang, Guiling & Shen, Xiaoxu & Wang, Jinfeng & Tan, Xianfeng & Feng, Shoutao & Hong, Jinglan, 2020. "Is geothermal heating environmentally superior than coal fired heating in China?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    16. ZhongXiang Zhang, 2016. "The implementation of the Paris Agreement in the international and China?s context," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(3), pages 63-69.
    17. Zhang, ZhongXiang, 2013. "Energy and Environmental Issues and Policy in China," Climate Change and Sustainable Development 162375, Fondazione Eni Enrico Mattei (FEEM).
    18. GUPTA Monika, 2019. "Decomposing The Role Of Different Factors In Co2 Emissions Increase In South Asia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 72-86, April.
    19. Zhang, Shaohui & Guo, Qinxin & Smyth, Russell & Yao, Yao, 2022. "Extreme temperatures and residential electricity consumption: Evidence from Chinese households," Energy Economics, Elsevier, vol. 107(C).
    20. Olsthoorn, Mark & Schleich, Joachim & Hirzel, Simon, 2017. "Adoption of Energy Efficiency Measures for Non-residential Buildings: Technological and Organizational Heterogeneity in the Trade, Commerce and Services Sector," Ecological Economics, Elsevier, vol. 136(C), pages 240-254.

    More about this item

    Keywords

    sectoral market mechanism; domestic policy instruments; policy preference; company; China;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:ccepwp:1414. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCEP (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.