Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China

Shuai Gao, Wenjia Cai, Wenling Liu, Can Wang () and ZhongXiang Zhang
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Shuai Gao: State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), and School of Environment, Tsinghua University
Wenjia Cai: Ministry of Education Key Laboratory for Earth System Modeling, Center for Earth System Science, Tsinghua University
Can Wang: State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), and School of Environment, Tsinghua University

CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University

Abstract: Understanding companies' preferences for various domestic policy instruments is crucial to designing and planning Sectoral Market Mechanism (SMM) in China. Based on a detailed overview of domestic policy instruments under SMM, this paper evaluates corporate preferences for diverse domestic policy instruments and identifies potential influencing factors through econometric analysis. The data were collected from 113 respondents in all 11 prefecture-level cities of Shanxi province, China. Regarding policy instruments under the system of government receiving tradable units, corporate energy saving potential, learning capacity and companies' characteristics have shown significant influences on companies' preferences. Dissemination and the popularization of knowledge are also important to help companies learn how to improve energy efficiency. In terms of policy measures with voluntary installation-level targets, corporate competition level, organizational size and ownership are the main factors influencing companies' preferences. Reducing inequality in the distribution of responsibility is especially important to gain companies' support. Under the policy with mandatory installation-level targets, it suggests that policymakers should focus on status of energy use management and internationalization orientation. Policy instruments familiar to companies that are able to relieve corporate financial pressures might be good options to gain higher acceptance. Moreover, our results show that it is very important to choose an issuance frequency of one to three years under sectoral crediting.

Keywords: sectoral market mechanism; domestic policy instruments; policy preference; company; China (search for similar items in EconPapers)
JEL-codes: D22 O13 P28 Q43 Q48 Q53 Q58 (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-cna and nep-tra
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https://ccep.crawford.anu.edu.au/sites/default/fil ... 2014-08/ccep1414.pdf

Related works:
Working Paper: Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China (2014)
Working Paper: Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China (2014)
Working Paper: Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China (2014)
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