Can Carbon Reduction Targets Achieve Energy Conservation and Emission Reduction? -- Evidence From Coal-Fired Power Plants in China

Guanwen Zhu

doi:10.54097/m5vvx539

Authors

Guanwen Zhu

DOI:

https://doi.org/10.54097/m5vvx539

Keywords:

Coal-fired Power Plants, Green Productivity, Difference-in-differences, Carbon Reduction Target Policy

Abstract

The impact of environmental regulation on productivity growth and carbon reduction is crucial for a country's sustainable development. This paper examines how China's carbon reduction target policy (CRT), initiated during the 12th Five-Year Plan period, has influenced the green productivity of coal-fired power plants. Using the DEA method, we evaluated the green productivity of China's coal-fired power plants from 2005 to 2015. Additionally, we treated the CRT proposed during the 12th Five-Year Plan as a natural experiment and applied a difference-in-differences (DID) approach to estimate its effect on green productivity. The findings indicate that the green productivity of China's coal-fired power plants has been on the rise, with efficiency improvements serving as a key driver. There is heterogeneity in the green productivity of these plants. Following the implementation of the CRT, the green productivity of coal-fired power plants improved, and the positive effects of the policy have grown over time. Therefore, China's CRT plays a significant role in promoting productivity growth and carbon reduction.

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