How the Chinese System of Charges and Subsidies Affects Pollution Control Efforts by China’s Top Industrial Polluters
نویسندگان
چکیده
While there are extensive theoretical studies on firms’ responses to environmental regulations and enforcement, there are few empirical analyses of firms’ expenditures on pollution abatement in responding to different regulations and enforcement strategies. This paper presents an empirical analysis of pollution abatement efforts of Chinese industrial firms under a combination of pollution charges and abatement subsidies. With data on Chinese top industrial polluters and China regional development, the econometric results show that the combination of charges and subsidies practiced in China has been effective in providing incentives for industrial firms to abate pollution.
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