Energy quota trading policy and energy efficiency: The role of government supervision and public participation

Ge Li and Xiaoyu Wang

Technological Forecasting and Social Change, 2024, vol. 206, issue C

Abstract: Unlike carbon emissions trading based on end-of-pipe regulation, the Energy Quota Trading (EQT) policy represents a market-oriented environmental regulation rooted in source control. However, its effectiveness on energy efficiency remains to be scrutinized. Using the panel data of 269 cities in China from 2011 to 2021, we employ the difference-in-differences method to examine whether and how the EQT policy impacts energy efficiency. Our results reveal that the EQT policy can significantly enhance green total factor energy efficiency. Mechanism analysis indicates that this promotion is primarily achieved by fostering green technology innovation and facilitating industrial structure upgrading. Further investigations explore the moderating role of external supervision, demonstrating that government supervision and public participation can amplify the EQT policy's efficacy in promoting energy efficiency. This underscores the complementary role of governmental and public in bolstering the utility of market-oriented incentives. Additionally, we identify significant heterogeneity in EQT policy effects across cities with varying geographical locations and development strategies. Our research offers critical insights into the adoption of source-control environmental regulations for developing countries.

Keywords: Energy quota trading; Energy efficiency; Government supervision; Public participation (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162524003615
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:206:y:2024:i:c:s0040162524003615

DOI: 10.1016/j.techfore.2024.123565

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().