The impacts and instruments of energy transition regulations on environmental pollution

Abstract

This study examines the influence of energy transition regulations on environmental pollution, exploring both the impact and instruments employed in regulatory frameworks. Focusing on the global shift towards cleaner energy sources, the research evaluates the effectiveness of regulations in reducing pollution levels. Through a concise analysis of literature and regulatory mechanisms, the study highlights the dual role of regulations as both mitigators of environmental harm and potential sources of unintended consequences. Over the past 17 years, there has been a notable and consistent reduction in average environmental pollution levels, indicating positive trends in environmental quality. The average environmental pollution decreased significantly from 0.0135 in 2005 to 0.0045 in 2021. The energy transition regulation (coal resource tax reform) proves to be effective in reducing environmental pollution. In detail, the energy transition regulation can effectively reduce environmental pollution in the western region, while it has no significant impact on environmental pollution in the eastern and central regions. The optimization of industrial structure, innovation level, and fiscal surplus are crucial pathways through which energy transition regulation inhibits environmental pollution. We provide a brief overview of the study's contribution to understanding the dynamic relationship between energy transition policies and environmental sustainability.