Can River Chief System Policy Improve Enterprises’ Energy Efficiency? Evidence from China

Da Gao, Chang Liu, Xinyan Wei and Yang Liu ()
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Da Gao: School of Law and Business, Wuhan Institute of Technology, Wuhan 430200, China
Chang Liu: School of Economics, Huazhong University of Science and Technology, Wuhan 430070, China
Xinyan Wei: School of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
Yang Liu: School of Economics, Huazhong University of Science and Technology, Wuhan 430070, China

IJERPH, 2023, vol. 20, issue 4, 1-17

Abstract: The river chief system (RCS) is an autonomous environmental policy implemented by local governments in China that incorporates environmental responsibilities into the performance evaluation. Although existing literature suggests that RCS can reduce water pollution, the impact of RCS on energy efficiency has not been assessed. Therefore, this paper compiles data on industrial enterprises and industrial pollution in China from 2003 to 2013 and empirically examines the impact of RCS on green total factor energy efficiency (GTFEE) by using a multiple difference-in-difference approach. The results show that RCS significantly enhances firms’ GTFEE, and a series of tests confirm the robustness of the findings. Second, we further explore how RCS affects GTFEE, the mechanism tests conclude that the RCS improves GTFEE mainly through optimizing energy structure and promoting technological innovation. Third, compared with small firms, exporters, and firms in non-heavy polluting industries, the RCS has a greater effect on improving the GTFEE of large firms, non-exporters, and firms in heavily polluting industries. This study provides new and novel ideas for emerging countries to improve environmental policies and achieve sustainable development.

Keywords: environmental regulation; river chief system; green total factor energy efficiency; difference-in-differences; mechanism tests (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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