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

34 Pages Posted: 30 Oct 2014

See all articles by Shuai Gao

Shuai Gao

Tsinghua University - School of Environment; State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), Peking University

Wenjia Cai

Tsinghua University

Wenling Liu

Tsinghua University - School of Environment; State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), Peking University

Can Wang

Tsinghua University - School of Environment

ZhongXiang Zhang

Tianjin University - Ma Yinchu School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 28, 2014

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

JEL Classification: D22, O13, P28, Q43, Q48, Q53, Q58

Suggested Citation

Gao, Shuai and Cai, Wenjia and Liu, Wenling and Wang, Can and Zhang, ZhongXiang, Corporate Preferences for Domestic Policy Instruments Under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China (October 28, 2014). FEEM Working Paper No. 89.2014. Available at SSRN: https://ssrn.com/abstract=2515837 or http://dx.doi.org/10.2139/ssrn.2515837

Shuai Gao

Tsinghua University - School of Environment

Beijing
China

State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), Peking University

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Wenjia Cai

Tsinghua University ( email )

Beijing, 100084
China

Wenling Liu

Tsinghua University - School of Environment

Beijing
China

State Key Joint Laboratory of Environment Simulation and Pollution Control (SKLESPC), Peking University

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Can Wang

Tsinghua University - School of Environment ( email )

China

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

92 Weijin Road, Nankai District
Tianjin 300072
China
+86 22 87370560 (Phone)

HOME PAGE: http://ideas.repec.org/f/pzh243.html

Register to save articles to
your library

Register

Paper statistics

Downloads
18
Abstract Views
536
PlumX Metrics