IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i24p16859-d1004795.html
   My bibliography  Save this article

Restructure or Misallocation? Enterprises’ Carbon Emission Intensity under Market Integration

Author

Listed:
  • Jiayuan Zhou

    (Longshan Honors School, Shandong University of Finance and Economics, Jinan 250014, China
    School of Finance, Shandong University of Finance and Economics, Jinan 250014, China)

  • Yunxia Li

    (School of Law, Shandong University of Finance and Economics, Jinan 250014, China)

  • Bo Li

    (School of Management, Tianjin University of Technology, Tianjin 300384, China)

Abstract

Incorporating urbanization with carbon efficiency into one analytical framework could be a new method for formulating the regional carbon emission reduction path. Based on the panel data from 2001 to 2014, the two-way fixed effects (TWFE) and continuous differences-in-differences (DID) methods are adopted to examine how the county-to-district upgrading policy (CDUP) affects the efficiency of an enterprise’s carbon emissions. The results show that the CDUP will significantly decrease the efficiency of an enterprise’s carbon emissions. The average carbon emissions of enterprises increased by 0.886 per unit of output by the CDUP, which remains significant after controlling for endogeneity. Heterogeneity analysis shows that the impact of the CDUP is significant for enterprises in low-level cities, but not in high-level cities, which is closely connected with regional governance and enterprise productivity. Moreover, market integration, regional carbon carrying capacity and industrial agglomeration is introduced to explain the phenomenon. The results suggest that the urbanization policy should coordinate the characteristics of industries and areas. Furthermore, the results can provide suggestions for enterprise production and local governance toward sustainable development.

Suggested Citation

  • Jiayuan Zhou & Yunxia Li & Bo Li, 2022. "Restructure or Misallocation? Enterprises’ Carbon Emission Intensity under Market Integration," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16859-:d:1004795
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/24/16859/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/24/16859/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lu, Yi & Tao, Zhigang & Zhu, Lianming, 2017. "Identifying FDI spillovers," Journal of International Economics, Elsevier, vol. 107(C), pages 75-90.
    2. Yituan Liu & Qihang Li & Zheng Zhang, 2022. "Do Smart Cities Restrict the Carbon Emission Intensity of Enterprises? Evidence from a Quasi-Natural Experiment in China," Energies, MDPI, vol. 15(15), pages 1-20, July.
    3. Daniel C. Esty & Andre Dua, 1997. "Sustaining the Asia Pacific Miracle: Environmental Protection and Economic Integration," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 37, April.
    4. Zhou, Nan & Fridley, David & Khanna, Nina Zheng & Ke, Jing & McNeil, Michael & Levine, Mark, 2013. "China's energy and emissions outlook to 2050: Perspectives from bottom-up energy end-use model," Energy Policy, Elsevier, vol. 53(C), pages 51-62.
    5. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    6. Qi He & Hong Fang & Miao Wang & Bo Peng, 2015. "Trade liberalization and trade performance of environmental goods: evidence from Asia-Pacific economic cooperation members," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3021-3039, June.
    7. Hongxing Tu & Wei Dai & Xu Xiao, 2022. "Study on the Environmental Efficiency of the Chinese Cement Industry Based on the Undesirable Output DEA Model," Energies, MDPI, vol. 15(9), pages 1-13, May.
    8. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    9. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
    10. Petra Moser & Alessandra Voena, 2012. "Compulsory Licensing: Evidence from the Trading with the Enemy Act," American Economic Review, American Economic Association, vol. 102(1), pages 396-427, February.
    11. Yabo Zhao & Shaojian Wang, 2015. "The Relationship between Urbanization, Economic Growth and Energy Consumption in China: An Econometric Perspective Analysis," Sustainability, MDPI, vol. 7(5), pages 1-19, May.
    12. Charles van Marrewijk, 2005. "Geographical Economics and the Role of Pollution on Location," Tinbergen Institute Discussion Papers 05-018/2, Tinbergen Institute.
    13. Xi Zhang & Jiayu Zheng & Ligang Wang, 2022. "Can the Relationship between Atmospheric Environmental Quality and Urban Industrial Structure Adjustment Achieve Green and Sustainable Development in China? A Case of Taiyuan City," Energies, MDPI, vol. 15(9), pages 1-17, May.
    14. Pargal, Sheoli & Wheeler, David, 1995. "Informal regulation of industrial pollution in developing countries : evidence from Indonesia," Policy Research Working Paper Series 1416, The World Bank.
    15. Erik Verhoef & Peter Nijkamp, 2008. "Urban Environmental Externalities, Agglomeration Forces, and the Technological ‘Deus ex Machina’," Environment and Planning A, , vol. 40(4), pages 928-947, April.
    16. M.T. Tolmasquim & G. Machado, 2003. "Energy and Carbon Embodied in the International Trade of Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 8(2), pages 139-155, June.
    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. Luo, Haizhi & Wang, Chenglong & Li, Cangbai & Meng, Xiangzhao & Yang, Xiaohu & Tan, Qian, 2024. "Multi-scale carbon emission characterization and prediction based on land use and interpretable machine learning model: A case study of the Yangtze River Delta Region, China," Applied Energy, Elsevier, vol. 360(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. Shao, Shuai & Tian, Zhihua & Yang, Lili, 2017. "High speed rail and urban service industry agglomeration: Evidence from China's Yangtze River Delta region," Journal of Transport Geography, Elsevier, vol. 64(C), pages 174-183.
    2. Zhi Li & Ruyi Yan & Zuo Zhang & Yue Sun & Xiaogang Zhang, 2021. "The Effects of City-County Mergers on Urban Energy Intensity: Empirical Evidence from Chinese Cities," IJERPH, MDPI, vol. 18(16), pages 1-24, August.
    3. Heng Zhang & Ziwei Zhang & Keyuan Sun & Yutong Zou, 2023. "Emission Reduction Effect, Influencing Factors and Economic Impact of China’s Carbon Market: An Empirical Test Based on a Multi-Period DID Model," SAGE Open, , vol. 13(4), pages 21582440231, November.
    4. Carl Benedikt Frey & Giorgio Presidente, 2024. "Privacy regulation and firm performance: Estimating the GDPR effect globally," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 1074-1089, July.
    5. Chuanlin Wang & Guowan Yan & Juan Ou, 2023. "Does Digitization Promote Green Innovation? Evidence from China," IJERPH, MDPI, vol. 20(5), pages 1-27, February.
    6. Zhang, Xinchun & Sun, Murong & Liu, Jianxu & Xu, Aijia, 2024. "The nexus between industrial robot and employment in China: The effects of technology substitution and technology creation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    7. Chao Wang & Yue‐Jun Zhang, 2020. "Does environmental regulation policy help improve green production performance? Evidence from China's industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 937-951, March.
    8. Haiwei Jiang & Shiyuan Pan & Xiaomeng Ren, 2020. "Does Administrative Approval Impede Low-Quality Innovation? Evidence from Chinese Manufacturing Firms," Sustainability, MDPI, vol. 12(5), pages 1-22, March.
    9. Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February.
    10. Wu, Weixiao & Hong, Chang & Muhammad, Andrew, 2020. "The Spillover effect of export processing zones," China Economic Review, Elsevier, vol. 63(C).
    11. Yang, Zhiqing & Liu, Peiyao & Luo, Lianfa, 2023. "Growing exports through ISO 9001 quality certification: Firm-level evidence from Chinese agri-food sectors," Food Policy, Elsevier, vol. 117(C).
    12. Daniel C. Esty, 2001. "Bridging the Trade-Environment Divide," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 113-130, Summer.
    13. Ziheng Niu & Feng Yi & Chen Chen, 2022. "Agricultural Insurance and Agricultural Fertilizer Non-Point Source Pollution: Evidence from China’s Policy-Based Agricultural Insurance Pilot," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    14. Seyed Komail Tayebi & Sanaz Younespour, 2012. "The Effect of Trade Openness on Environmental Quality: Evidence from Iran's Trade Relations with the Selected Countries of the Different Blocks," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 17(2), pages 19-40, spring.
    15. Nicole A. MATHYS & Jaime DE MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
    16. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    17. Li, Xi & Yu, Biying, 2019. "Peaking CO2 emissions for China's urban passenger transport sector," Energy Policy, Elsevier, vol. 133(C).
    18. Minhua Yang & Rui Yao & Linkun Ma & Ang Yang, 2024. "Towards a Low-Carbon Target: How the High-Speed Rail and Its Expansion Affects Industrial Concentration and Macroeconomic Conditions: Evidence from Chinese Urban Agglomerations," Sustainability, MDPI, vol. 16(19), pages 1-18, September.
    19. Koech Cheruiyot, 2022. "Detecting spatial economic clusters using kernel density and global and local Moran's I analysis in Ekurhuleni metropolitan municipality, South Africa," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 307-327, April.
    20. Garfield Wayne Hunter & Gideon Sagoe & Daniele Vettorato & Ding Jiayu, 2019. "Sustainability of Low Carbon City Initiatives in China: A Comprehensive Literature Review," Sustainability, MDPI, vol. 11(16), pages 1-37, August.

    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:gam:jsusta:v:14:y:2022:i:24:p:16859-:d:1004795. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.