Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98411
Authors: 
Du, Limin
Hanley, Aoife
Rehdanz, Katrin
Year of Publication: 
2014
Series/Report no.: 
Kiel Working Paper 1934
Abstract: 
Our analysis is the first of its kind to explore patterns of subsidization and CO2 emissions in China's electricity producing sector. Applying data for all power plants across China and controlling for the age, capacity and location of generating stations, we find that plants attracting a higher government subsidy are also worryingly the plants generating a disproportionate share of CO2 emissions. This distortion is incongruent with China's aspiration for a greener economy but may be eliminated if China delivers on its November 2013 announcement to review many industry subsidies on its way to a fully-fledged market economy (Bloomberg News, 28.02.2014).
Subjects: 
CO2 emissions
China
energy sector
plant-level data
JEL: 
Q53
Q48
Document Type: 
Working Paper

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