Evaluating the impact of denitrification tariff on energy-related NOx generation in China: Policy effects and regional disparities

Previous studies analyzing energy related nitrous oxides (NOx) focus on the calculation and influencing factors of NOx generation, but lack sufficient analysis of policy impacts. This paper attempts to evaluate a critical financial incentive for motivating NOx removal in China – the denitrification...

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Veröffentlicht in:Energy policy 2020-07, Vol.142, p.111520, Article 111520
Hauptverfasser: Yang, Chunyu, Wang, Yu, Dong, Zhanfeng
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description Previous studies analyzing energy related nitrous oxides (NOx) focus on the calculation and influencing factors of NOx generation, but lack sufficient analysis of policy impacts. This paper attempts to evaluate a critical financial incentive for motivating NOx removal in China – the denitrification tariff for power plants. We calculate energy-related NOx generation in 30 provinces from 1995 to 2016, and test the impact of the denitrification tariff using an extended STIRPAT (Stochastic Impacts by Regression on Population, Affluence, and Technology) model. We examine policy impacts in the pilot and follower regions with different implementation time, and find significant reduction in NOx generation in both regions. On national average, our model estimates that 1% increase in the denitrification tariff leads to 0.190% decline in energy-related NOx generation, holding other variables constant. The effect size of the tariff is higher in the follower region than in the pilot region, whereas policy effect is lagged for 2 years in the pilot region. We also find socio-economic factors significantly positively correlated with NOx generation. The result suggests that tailored incentives considering regional disparities will work better than a uniform incentive, and a combination of policy instruments in reducing fossil fuel consumption is desired to effectively reduce NOx generation. •Energy-related NOx generation has noticeable decline around 2013 in China's 30 provinces.•We estimate the impacts of the denitrification tariff using an extended STIRPAT model.•We find 1% increase in denitrification tariff leads to 0.190% decline in energy-related NOx generation.•Policy effects lag 1–2 years in the pilot region.•The tariff is more effective in the follower region.
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The result suggests that tailored incentives considering regional disparities will work better than a uniform incentive, and a combination of policy instruments in reducing fossil fuel consumption is desired to effectively reduce NOx generation. •Energy-related NOx generation has noticeable decline around 2013 in China's 30 provinces.•We estimate the impacts of the denitrification tariff using an extended STIRPAT model.•We find 1% increase in denitrification tariff leads to 0.190% decline in energy-related NOx generation.•Policy effects lag 1–2 years in the pilot region.•The tariff is more effective in the follower region.</description><identifier>ISSN: 0301-4215</identifier><identifier>EISSN: 1873-6777</identifier><identifier>DOI: 10.1016/j.enpol.2020.111520</identifier><language>eng</language><publisher>Kidlington: Elsevier Ltd</publisher><subject>Affluence ; Denitrification ; Denitrification tariff ; Economic factors ; Electric power generation ; Energy ; Energy consumption ; Energy policy ; Energy-related NOx generation ; Evaluation ; Fossil fuels ; Incentives ; Nitrogen oxides ; Nitrous oxide ; Panel data ; Policy evaluation ; Population policy ; Power plants ; Provinces ; Regional analysis ; Regression analysis ; Social factors ; Socioeconomic factors ; Socioeconomics ; STIRPAT model ; Stochasticity ; Tariffs ; Technology</subject><ispartof>Energy policy, 2020-07, Vol.142, p.111520, Article 111520</ispartof><rights>2020 Elsevier Ltd</rights><rights>Copyright Elsevier Science Ltd. 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subjects Affluence
Denitrification
Denitrification tariff
Economic factors
Electric power generation
Energy
Energy consumption
Energy policy
Energy-related NOx generation
Evaluation
Fossil fuels
Incentives
Nitrogen oxides
Nitrous oxide
Panel data
Policy evaluation
Population policy
Power plants
Provinces
Regional analysis
Regression analysis
Social factors
Socioeconomic factors
Socioeconomics
STIRPAT model
Stochasticity
Tariffs
Technology
title Evaluating the impact of denitrification tariff on energy-related NOx generation in China: Policy effects and regional disparities
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