Erin Mansur and I have a well cited 2013 JPUBE paper documenting that energy intensive firms cluster where energy prices are low (the paper has several other ideas!). Siqi Zheng, Jianfeng Wu and Weizeng Sun and I have a 2017 JUE paper studying China's industrial parks. In these parks, land, capital and electricity is often subsidized. The NY Times reports today on an obvious synergy of these two papers. Energy intensive bitcoin companies in China are locating in cheap energy places and mining the coins. This produces cash and carbon because in places with cheap power in China, the power is generated by coal.
This reminds me of a story. When my son was age 10, he would keep his computer on at night to mine bitcoins. He figured out that I pay his electricity bill (his costs) but that he would keep the revenue on any bitcoins he mined. He thought that he had a "money pump" until I reminded him that he will inherit all of our wealth and that the overall profitability of his operations was negative. The same logic applies to China's firms today if you substitute the words President Xi for Matthew Kahn.
Environmental economists haven't done enough work on "perverse subsidies". As governments keep gas prices and fossil fuel energy prices low, how does this affect the scale, composition and technique of industry? We have much more work on the vehicle fleet on this topic but not enough about the industrial and commercial sectors.