China's CO2 emissions from power generating stations and the role of subsidies – a first exploration. Issue 5 (23rd March 2016)

• Record Type: Journal Article
• Authors: Du, Limin; Hanley, Aoife; Rehdanz, Katrin
• Is Part Of: Applied economics letters. Volume 23:Issue 5(2016)
• Page Start: 332
• Page End: 335
• Publication Date: 2016-03-23
• Subjects: Carbon emissions -- China -- power sector -- plant-level data; Q53 -- Q48; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2015.1073832
• Languages: English
• ISSNs: 1350-4851

Abstract

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 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.