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Does industrial convergence mitigate CO2 emissions in China? A quasi-natural experiment on “Triple Play” Reform

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  • Wang, Jianda
  • Dong, Kangyin
  • Taghizadeh-Hesary, Farhad
  • Dong, Xiucheng

Abstract

As a crucial aspect of industrial development, the influence of industrial convergence on the environment cannot be ignored. This paper uses the “Triple Play” Reform (TPR) policy as a representative case of industrial convergence for constructing a quasi-natural experimental analysis framework. Using panel data from 285 Chinese cities from 2004 to 2016, we examine the influence of the industrial convergence policy on per capita CO2 emissions using a multi-period difference-in-differences (DID) model. The results indicate that the TPR reduces CO2 emissions in China. Furthermore, the TPR policy indirectly decreases per capita CO2 emissions through industrial structure upgrading and the promotion of green technology innovation. Most importantly, the carbon emission-reduction effect of TPR is heterogeneous according to geographical differences, resource endowment, and city size. The research findings contribute to filling a gap in the literature by demonstrating how industrial convergence policies can mitigate CO2 emissions in China and offer valuable insights for future industrial convergence practices and emission reduction strategies in China.

Suggested Citation

  • Wang, Jianda & Dong, Kangyin & Taghizadeh-Hesary, Farhad & Dong, Xiucheng, 2023. "Does industrial convergence mitigate CO2 emissions in China? A quasi-natural experiment on “Triple Play” Reform," Energy Economics, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006059
    DOI: 10.1016/j.eneco.2023.107107
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    Keywords

    Industrial convergence; Carbon emission reduction; “Triple Play” reform; Multi-period DID method; China;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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