IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p667-d1568401.html
   My bibliography  Save this article

The Synergy of Pollution and Carbon Reduction by Green Fiscal Policy: A Quasi-Natural Experiment Utilizing a Pilot Program from China’s Comprehensive Demonstration Cities of Energy Conservation and Emission Reduction Fiscal Policy

Author

Listed:
  • Lei Xu

    (Research Center of “Agriculture, Rural areas and Farmers” Issues, Jiangxi Agricultural University, Nanchang 330045, China
    School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China)

  • Shiguang Peng

    (School of Economics, Yunnan University, Kunming 650500, China)

  • Le Wang

    (College of Finance, Nanjing Agricultural University, Nanjing 210095, China)

Abstract

Using data from 2003 to 2019 for China’s 257 cities, this quantitative research utilizes the difference-in-differences approach to evaluate the synergy of the Comprehensive Demonstration Cities of Energy Conservation and Emission Reduction Fiscal Policy on pollution and carbon reduction. The primary results are as follows. The policy successfully reduces total emissions of industrial SO 2 , industrial wastewater, and CO 2 , thus achieving the desired synergistic effect of pollution and carbon reduction. Facilitating green technological innovation and promoting industrial upgrading are the transmission mechanisms through which the synergistic effect of the policy operates. The negative effect of the policy on the total emissions of industrial SO 2 and CO 2 is greater in the eastern area than in the mid-western area and the impact of the policy on decreasing the total emissions of industrial SO 2 is more pronounced in non-resource-based cities compared to resource-based cities. This study provides an empirical reference for green fiscal policy with respect to reducing air pollution, wastewater pollution, and greenhouse gas emissions.

Suggested Citation

  • Lei Xu & Shiguang Peng & Le Wang, 2025. "The Synergy of Pollution and Carbon Reduction by Green Fiscal Policy: A Quasi-Natural Experiment Utilizing a Pilot Program from China’s Comprehensive Demonstration Cities of Energy Conservation and Em," Sustainability, MDPI, vol. 17(2), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:667-:d:1568401
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/667/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/2/667/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian J Preston, 2021. "The Influence of the Paris Agreement on Climate Litigation: Causation, Corporate Governance and Catalyst (Part II)," Journal of Environmental Law, Oxford University Press, vol. 33(2), pages 227-256.
    2. Shiguang Peng & Le Wang & Lei Xu, 2023. "Impact of the Marketization of Industrial Land Transfer on Regional Carbon Emission Intensity: Evidence from China," Land, MDPI, vol. 12(5), pages 1-20, April.
    3. Jiang, Shiqi & Lin, Xinyue & Qi, Lingli & Zhang, Yongqiang & Sharp, Basil, 2022. "The macro-economic and CO2 emissions impacts of COVID-19 and recovery policies in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 981-996.
    4. Brian J Preston, 2021. "The Influence of the Paris Agreement on Climate Litigation: Legal Obligations and Norms (Part I)," Journal of Environmental Law, Oxford University Press, vol. 33(1), pages 1-32.
    Full references (including those not matched with items on IDEAS)

    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. Louis J. Kotzé & Benoit Mayer & Harro van Asselt & Joana Setzer & Frank Biermann & Nicolas Celis & Sam Adelman & Bridget Lewis & Amanda Kennedy & Helen Arling & Birgit Peters, 2024. "Courts, climate litigation and the evolution of earth system law," Global Policy, London School of Economics and Political Science, vol. 15(1), pages 5-22, February.
    2. Mao, Qian & Ma, Xinyuan & Sun, Yunpeng, 2023. "Study of impacts of blockchain technology on renewable energy resource findings," Renewable Energy, Elsevier, vol. 211(C), pages 802-808.
    3. Kovács, Anna & Luckner, Katharina & Sekuła, Anna & Kantorowicz, Jarosław, 2024. "Beyond courts: Does strategic litigation affect climate change policy support?," International Review of Law and Economics, Elsevier, vol. 79(C).
    4. Min Chen & Longji Zeng & Yajuan Deng & Shan Chen & Xin Gu, 2024. "The Impact of Land Marketization on Urban Resilience: Empirical Evidence from Chinese Cities," Land, MDPI, vol. 13(9), pages 1-24, August.
    5. Rosell, Jordi, 2023. "Did governments neglect the environment during the COVID-19 pandemic? An empirical analysis of green public procurement," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 835-849.
    6. Lee, Sang Ho & Choi, Daewoung Joey & Han, Seung Hun, 2023. "Corporate cash holdings in response to climate risk and policies," Finance Research Letters, Elsevier, vol. 55(PA).
    7. Shiguang Peng & Le Wang & Lei Xu, 2023. "Impact of the Marketization of Industrial Land Transfer on Regional Carbon Emission Intensity: Evidence from China," Land, MDPI, vol. 12(5), pages 1-20, April.
    8. Raei, Hasan & Maleki, Abbas & Farajzadeh, Zakariya, 2024. "Analysis of energy policy reform in Iran: Energy and emission intensity changes," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1535-1557.
    9. Gao, Zhibin & Li, Zengrong, 2024. "Role of free media and political openness in achieving resources efficiency and sustainability," Resources Policy, Elsevier, vol. 90(C).
    10. Funashima, Yoshito & Hiraga, Kazuki, 2023. "Did the Japanese government’s travel subsidy increase the number of hotel guests and infection during the COVID-19 pandemic?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 1005-1025.
    11. Wenying Li & Keqiang Wang & Hongmei Liu & Yixuan Zhang & Xiaodan Zhu, 2024. "Construction Land Transfer Scale and Carbon Emission Intensity: Empirical Evidence Based on County-Level Land Transactions in Jiangsu Province, China," Land, MDPI, vol. 13(7), pages 1-24, June.
    12. Deng, Youyi & Dong, Kangyin, 2024. "How does the coal-to-gas policy mitigate carbon emissions? The role of fintech development," Resources Policy, Elsevier, vol. 89(C).
    13. Chen, Jinglong & Wang, Dandan & Wang, Qinqin & Cai, Qiran, 2024. "Quantifying the synergy of China's carbon neutrality policies through policy documents," Renewable and Sustainable Energy Reviews, Elsevier, vol. 200(C).
    14. Wen Zhang & Rong Zhang & Yuntao Zou, 2024. "Urbanization and Cultural Industry Correlation: An Empirical Analysis from China," Sustainability, MDPI, vol. 16(16), pages 1-27, 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:17:y:2025:i:2:p:667-:d:1568401. 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.