ECIN Replication Package for "State Ownership and Cost-effectiveness of Environmental Policies: Firm-level Evidence"

We employ Chinese firm-level data to
examine the interconnections among firm ownership, environmental regulation,
and non-environmental economic policies. We find that there are substantial
differences between state-owned enterprises (SOEs) and privately-owned
enterprises (POEs) in response to government anti-pollution mandates. SOEs
reduced emissions more than POEs, with the former relying mainly on abatement
investment and the latter on reducing outputs. An average POE’s marginal
abatement cost is more than nine times that of an average SOE, suggesting
significant inefficiencies in policy implementation. Policies liberalizing
financial markets could affect POEs’ abatement costs and improve the
cost-effectiveness of environmental policies.