Cleaning up the air for the 2008 Beijing Olympic Games: Empirical study on China's thermal power sector

Abstract

This study examines the impact of the 2008 Beijing Olympic Games (BOG08) on pollution control strategies in the thermal power sector. We focus on two pollution control strategies: the installation of pollution control equipment and improvement in energy efficiency. By using a difference-in-differences methodology, we investigate if there is a significant difference in the installation of pollution control equipment between provinces under the regional control policy for the BOG08 and other provinces. Furthermore, by using matching methods, we explore the differences in the energy efficiency between power plants in provinces targeted by the policy and those in other provinces. The results suggest that there are no statistically significant effects of the BOG08 on pollution control equipment. On the other hand, energy efficiency measured by the coal consumption per unit of electricity generation by thermal power plants improved in 2007 and 2008 in provinces designated as areas requiring coordinated air pollution control for the Olympic Games. These results are consistent with the hypothesis that faster and cheaper responses played a larger role in pollution reduction in BOG08.