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China’s CO2 emissions from power generating stations and the role of subsidies – a first exploration

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  • Limin Du
  • Aoife Hanley
  • Katrin Rehdanz

Abstract

Our analysis is the first of its kind to explore patterns of subsidization and CO2 emissions in China’s electricity-producing sector. Applying data for all power plants across China and controlling for the age, capacity and location of generating stations, we find that plants attracting a higher government subsidy are also the plants generating a disproportionate share of CO2 emissions. This distortion is incongruent with China’s aspiration for a greener economy but may be eliminated if China delivers on its November 2013 announcement to review many industry subsidies on its way to a fully fledged market economy.

Suggested Citation

  • Limin Du & Aoife Hanley & Katrin Rehdanz, 2016. "China’s CO2 emissions from power generating stations and the role of subsidies – a first exploration," Applied Economics Letters, Taylor & Francis Journals, vol. 23(5), pages 332-335, March.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:5:p:332-335
    DOI: 10.1080/13504851.2015.1073832
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