IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v283y2023ics0360544223018078.html
   My bibliography  Save this article

Rethinking the complex effects of the clean energy transition on air pollution abatement: Evidence from China's coal-to-gas policy

Author

Listed:
  • Wu, Desheng
  • Xie, Yu
  • Liu, Dingjie

Abstract

Numerous countries attempt to mitigate air pollution by transitioning from fossil to clean energy since the large-scale burning of fossil fuels has triggered an environmental crisis. However, the effects of of these effort remain mixed. This study investigates the environmental benefits of China's coal-to-gas (CTG) policy utilizing monthly data and the difference-in-difference (DID) model. The results indicate that the CTG policy can reduce individual air pollution by 6.16%∼12.41%, AQI by 1.76%, whereas increase ozone by 11.85%. Moreover, the benefits are more prominent in the spring and winter, resource-based cities, megacities, and cities with young leaders and strong governance. Nevertheless, CTG ultimately confronts the risk of policy failure in the long run. While the rebound effect can worsen air quality, structural optimization and technological innovation can mitigate air pollution. Further, the cost-benefit analysis indicates that the benefits of CTG can roughly cover its costs, but its cost-benefit efficiency is low. Our findings clarify the debate between CTG and air pollution on larger and higher-resolution datasets and provide strong empirical support for policymakers to achieve sustainable development through deep energy structure adjustment. We propose targeted policy implications on the design of collaborative emission reduction tools and subsidy fairness.

Suggested Citation

  • Wu, Desheng & Xie, Yu & Liu, Dingjie, 2023. "Rethinking the complex effects of the clean energy transition on air pollution abatement: Evidence from China's coal-to-gas policy," Energy, Elsevier, vol. 283(C).
  • Handle: RePEc:eee:energy:v:283:y:2023:i:c:s0360544223018078
    DOI: 10.1016/j.energy.2023.128413
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223018078
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2023.128413?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.

    References listed on IDEAS

    as
    1. Liu, Hongxun & Mauzerall, Denise L., 2020. "Costs of clean heating in China: Evidence from rural households in the Beijing-Tianjin-Hebei region," Energy Economics, Elsevier, vol. 90(C).
    2. Viard, V. Brian & Fu, Shihe, 2015. "The effect of Beijing's driving restrictions on pollution and economic activity," Journal of Public Economics, Elsevier, vol. 125(C), pages 98-115.
    3. Wang, Qunwei & Zhou, Bo & Zhang, Cheng & Zhou, Dequn, 2021. "Do energy subsidies reduce fiscal and household non-energy expenditures? A regional heterogeneity assessment on coal-to-gas program in China," Energy Policy, Elsevier, vol. 155(C).
    4. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    5. Feng, Tong & Du, Huibin & Coffman, D'Maris & Qu, Aiyu & Dong, Zhanfeng, 2021. "Clean heating and heating poverty: A perspective based on cost-benefit analysis," Energy Policy, Elsevier, vol. 152(C).
    6. Yan, Yutong & Jiao, Wenxian & Wang, Kang & Huang, Yatao & Chen, Jingyang & Han, Qingfeng, 2020. "Coal-to-gas heating compensation standard and willingness to make clean energy choices in typical rural areas of northern China," Energy Policy, Elsevier, vol. 145(C).
    7. Kong, Minjin & Ji, Changyoon & Hong, Taehoon & Kang, Hyuna, 2022. "Impact of the use of recycled materials on the energy conservation and energy transition of buildings using life cycle assessment: A case study in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    8. Arora, Vipin & Cai, Yiyong & Jones, Ayaka, 2016. "The national and international impacts of coal-to-gas switching in the Chinese power sector," Energy Economics, Elsevier, vol. 60(C), pages 416-426.
    9. Wang, Chunchao & Lin, Qianqian & Qiu, Yun, 2022. "Productivity loss amid invisible pollution," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    10. Li, Guangqin & Xue, Qing & Qin, Jiahong, 2022. "Environmental information disclosure and green technology innovation: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    11. Sixu Wu & Panpan Wang & Bindong Sun, 2022. "Can the Internet narrow regional economic disparities?," Regional Studies, Taylor & Francis Journals, vol. 56(2), pages 324-337, February.
    12. Katsumasa Tanaka & Otávio Cavalett & William J. Collins & Francesco Cherubini, 2019. "Asserting the climate benefits of the coal-to-gas shift across temporal and spatial scales," Nature Climate Change, Nature, vol. 9(5), pages 389-396, May.
    13. Zhang, Yali & Li, Wenqi & Wu, Feng, 2020. "Does energy transition improve air quality? Evidence derived from China’s Winter Clean Heating Pilot (WCHP) project," Energy, Elsevier, vol. 206(C).
    14. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    15. Que, Wei & Zhang, Yabin & Schulze, Günther, 2019. "Is public spending behavior important for Chinese official promotion? Evidence from city-level," China Economic Review, Elsevier, vol. 54(C), pages 403-417.
    16. Gong, Chengzhu & Wu, Desheng & Gong, Nianjiao & Qi, Rui, 2020. "Multi-agent mixed complementary simulation of natural gas upstream market liberalization in China," Energy, Elsevier, vol. 200(C).
    17. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    18. Kuang, Yunming & Lin, Boqiang, 2023. "Unwatched pollution reduction: The effect of natural gas utilization on air quality," Energy, Elsevier, vol. 273(C).
    19. Ribeiro, Fernando & Ferreira, Paula & Araújo, Madalena & Braga, Ana Cristina, 2014. "Public opinion on renewable energy technologies in Portugal," Energy, Elsevier, vol. 69(C), pages 39-50.
    20. Kirova-Yordanova, Zornitza, 2017. "Exergy-based estimation and comparison of urea and ammonium nitrate production efficiency and environmental impact," Energy, Elsevier, vol. 140(P1), pages 158-169.
    21. Zha, Donglan & Chen, Qian & Wang, Lijun, 2022. "Exploring carbon rebound effects in Chinese households’ consumption: A simulation analysis based on a multi-regional input–output framework," Applied Energy, Elsevier, vol. 313(C).
    22. Lin, Boqiang & Liu, Xia, 2012. "Dilemma between economic development and energy conservation: Energy rebound effect in China," Energy, Elsevier, vol. 45(1), pages 867-873.
    23. Lueken, Roger & Klima, Kelly & Griffin, W. Michael & Apt, Jay, 2016. "The climate and health effects of a USA switch from coal to gas electricity generation," Energy, Elsevier, vol. 109(C), pages 1160-1166.
    24. Xu, Bin & Lin, Boqiang, 2019. "Can expanding natural gas consumption reduce China's CO2 emissions?," Energy Economics, Elsevier, vol. 81(C), pages 393-407.
    25. Zeng, Jingjing & Bao, Rui & McFarland, Michael, 2022. "Clean energy substitution: The effect of transitioning from coal to gas on air pollution," Energy Economics, Elsevier, vol. 107(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xie, Yu & Wu, Desheng, 2024. "How does competition policy affect enterprise digitization? Dual perspectives of digital commitment and digital innovation," Journal of Business Research, Elsevier, vol. 178(C).
    2. Shao, Shuai & Xu, Le & Yang, Lili & Yu, Dianfan, 2024. "How do energy-saving policies improve environmental quality: Evidence from China’s Top 10,000 energy-consuming enterprises program," World Development, Elsevier, vol. 175(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Hui & Zhang, Ruining & Ai, Xianneng, 2022. "Cost estimation of “coal-to-gas” project: Government and residents’ perspectives," Energy Policy, Elsevier, vol. 167(C).
    2. Zhang, Ruining & Ai, Xianneng & Li, Hui, 2023. "How to design subsidy policies for clean energy projects? A study on “coal-to-gas” project in China," Resources Policy, Elsevier, vol. 85(PB).
    3. Wang, Xueyang & Sun, Xiumei & Ahmad, Mahmood & Zhang, Haotian, 2023. "Does low carbon energy transition impede air pollution? Evidence from China's coal-to-gas policy," Resources Policy, Elsevier, vol. 83(C).
    4. Zeng, Jingjing & Bao, Rui & McFarland, Michael, 2022. "Clean energy substitution: The effect of transitioning from coal to gas on air pollution," Energy Economics, Elsevier, vol. 107(C).
    5. Wang, Haijian & Zhou, Shaojie & Zhang, Penglong, 2024. "Clean heating and clean air: Evidence from the coal-to-gas program in China," China Economic Review, Elsevier, vol. 85(C).
    6. Nie, Yazhou & Deng, Mengsi & Shan, Ming & Yang, Xudong, 2023. "Clean and low-carbon heating in the building sector of China: 10-Year development review and policy implications," Energy Policy, Elsevier, vol. 179(C).
    7. Nishitateno, Shuhei & Burke, Paul J., 2021. "Willingness to pay for clean air: Evidence from diesel vehicle registration restrictions in Japan," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    8. Zhang, Yali & Li, Wenqi & Wu, Feng, 2020. "Does energy transition improve air quality? Evidence derived from China’s Winter Clean Heating Pilot (WCHP) project," Energy, Elsevier, vol. 206(C).
    9. Matteo Picchio & Michele Ubaldi, 2023. "Intergenerational Scars: The Impact Of Parental Unemployment On Individual Health Later In Life," Working Papers 478, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Feng, Tong & Sun, Yuechi & Shi, Yating & Ma, Jie & Feng, Chunmei & Chen, Zhenni, 2024. "Air pollution control policies and impacts: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    11. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    12. Yanlin Sun & Shaoxiong Ma & Hao Feng, 2023. "The New Geography of Manufacturing in China: The Internet and Manufacturing Agglomeration," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    13. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    14. Salgado, Edgar & Mitnik, Oscar A., 2021. "Spatial and Time Spillovers of Driving Restrictions: Causal Evidence from Lima's Pico Y Placa Policy," IZA Discussion Papers 14932, Institute of Labor Economics (IZA).
    15. Jennifer A. Delaney & Tyler D. Kearney, 2022. "TV Networks for College Sports: Implications for Institutional Subsidies," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(7), pages 1158-1203, November.
    16. Laura Barrie Smith, 2022. "The effect of nurse practitioner scope of practice laws on primary care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 21-41, January.
    17. Fu, Shihe & Gu, Yizhen, 2017. "Highway toll and air pollution: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 32-49.
    18. Guo, Zhangdong & Zhang, Xiaoning, 2024. "Has the healthy city pilot policy improved urban air quality in China? Evidence from a quasi-natural experiment," Energy Economics, Elsevier, vol. 129(C).
    19. Hongsheng Fang & Xufei Zhang & Lin Guo, 2023. "Productivity effects of corporate income tax: Evidence from China," The World Economy, Wiley Blackwell, vol. 46(6), pages 1815-1842, June.
    20. Delaney, Jennifer A. & Kearney, Tyler D., 2015. "The impact of guaranteed tuition policies on postsecondary tuition levels: A difference-in-difference approach," Economics of Education Review, Elsevier, vol. 47(C), pages 80-99.

    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:energy:v:283:y:2023:i:c:s0360544223018078. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.journals.elsevier.com/energy .

    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.