IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v133y2024ics0140988324002238.html
   My bibliography  Save this article

Can foreign demand shocks reduce the pollution emission intensity? Evidence from exporters in China

Author

Listed:
  • Wang, Shufei
  • Ma, Xinyu
  • Zhang, Xiang
  • Kang, Meiling

Abstract

This paper investigates the impact of foreign demand shocks on emission intensity using data from Chinese manufacturing exporters. We construct a Bartik instrument for changes in foreign demand by incorporating firms' initial specialization patterns and the portion of foreign demand changes independent of fluctuations in China's exports. We observe a significantly negative effect of increased foreign demand shocks on SO2 emission intensity (emission intensity effect), yet the overall impact on firms' SO2 emissions is minimal and statistically insignificant. Our decomposition reveals that although positive foreign demand shocks lead to increased SO2 emissions through output growth (scale effect), this effect is largely counteracted by the negative emission intensity effect. Further analysis shows that the emission intensity effect can be attributed to firms' adoption of cleaner technologies and the reallocation of product sales towards those with lower emission intensities.

Suggested Citation

  • Wang, Shufei & Ma, Xinyu & Zhang, Xiang & Kang, Meiling, 2024. "Can foreign demand shocks reduce the pollution emission intensity? Evidence from exporters in China," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002238
    DOI: 10.1016/j.eneco.2024.107515
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324002238
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.107515?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:eee:eneeco:v:133:y:2024:i:c:s0140988324002238. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.