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vol percent.As one of the "four sharp teeth" of China's new environmental protection law, the daily penalty policy which is characterized by high deterrent effect and high violation cost plays an important role in restraining repeated violations of polluting firms. In order to further test the effectiveness of the daily penalty policy in pollution control and emission reduction, this study evaluates the policy through the time-varying difference-in-differences (DID) method using data from Chinese industrial firms from 2003 to 2012. The results show
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