regulated due to its historically large contribution to air and water pollution. Our paper contributes to the broader empirical … and enforcement. Our key findings are: (1) prudential regulation limits expansion of plants with high initial pollution …

policy launched in 2007. Using the matched dataset of firms’ production, pollution, and export structure, we employ a … raised treated firms’ pollution intensity (“technique effect”) and reduced their gross output (“scale effect”) relative to … non-treated firms, resulting in an insignificant effect of the rebate reduction policy on firms’ total pollution emissions …