Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10134656 | Energy Policy | 2018 | 11 Pages |
Abstract
In China, a large private sector has evolved alongside a still sizeable state-owned sector that is subject to government control. Several studies have found that in this mixed economy, the private sector is economically more efficient than the state-owned sector. In this paper, we investigate whether private firms are also more carbon efficient than state-owned firms. Using a macroeconomic panel data model with provincial data from 1992 to 2010, we confirm that private firms emit less carbon dioxide than state-owned firms. Our results imply that future reforms, such as ongoing privatization, introduced to increase the economic efficiency of state-owned companies will also mitigate emissions growth. The policy lesson, not only for China but for developing countries maintaining a large state-owned sector, is that economic efficiency and energy efficiency are conjoined mutual benefits.
Related Topics
Physical Sciences and Engineering
Energy
Energy Engineering and Power Technology
Authors
Fredrik N.G. Andersson, Sonja Opper, Usman Khalid,