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Inter-firm collaborations on carbon emission reduction within industrial chains in China: Practices, drivers and effects on firms' performances

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  • Zhang, Bin
  • Wang, Zhaohua

Abstract

The purpose of this paper is to explore the determinants that influence the industrial firms to cooperate on carbon emission reduction (CER) within their industrial chains. And whether the CER collaborations could improve the performance of participants is another focus of our study. This paper provides a questionnaire survey about CER inter-firm collaborations on energy intensive industries in China. Three regression models including Multiple Linear Regression, Binary Choice Model, and Ordinal Choice Regression are employed to identify the determinants that drive or impede the implementation of CER collaborations. The results show that inter-firm CER collaborations are generally at an infancy stage in China. The main driver for CER collaborations derives from the CER demands of other stakeholders in the industrial chains. And the lack of infrastructure and mechanism is the main barrier that impedes the inter-firm collaborations. Moreover, CER collaborations through industrial symbiosis play a positive role in improving economic performance. However, the effects are to a large extent related to the improved environmental performance through the CER collaborations. Our results also indicate that there is much room for industrial firms to conduct CER collaborations in China, and market tools are somewhat more effective than compulsive regulations for promoting CER collaborations.

Suggested Citation

  • Zhang, Bin & Wang, Zhaohua, 2014. "Inter-firm collaborations on carbon emission reduction within industrial chains in China: Practices, drivers and effects on firms' performances," Energy Economics, Elsevier, vol. 42(C), pages 115-131.
    • Handle: RePEc:eee:eneeco:v:42:y:2014:i:c:p:115-131
    DOI: 10.1016/j.eneco.2013.12.006
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    More about this item

    Keywords

    FDI; Inter-firm collaboration; Carbon emission reduction; Industrial chain; Cooperation;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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