nep-cna New Economics Papers
on China
Issue of 2023‒05‒01
two papers chosen by
Zheng Fang
Ohio State University

  1. Environmentally-Inclined Politicians and Local Environmental Performance: Evidence from Publicly Listed Firms in China By Hanming Fang; Honglin Ren; Danwen Song; Nianhang Xu
  2. Effects of Early Childhood Climate on Cognitive Development and Home Environment By Wu, Wenjie; Yang, Zhe; Kim, Jun Hyung; Yue, Ai

  1. By: Hanming Fang; Honglin Ren; Danwen Song; Nianhang Xu
    Abstract: We study how environmentally-inclined politicians (EIPs), i.e., politicians with prior environment-related working experience, affect local environmental performance in China. Firms located in cities with EIPs have lower levels of sulfur dioxide (SO2) emissions. The effect is attenuated when the politician is in his/her second term and among firms that are economically important. Firms in cities with EIPs commit less environmental violations, receive more green subsidies from the local government, and choose to establish new polluting subsidiaries in cities without EIPs. Furthermore, these EIPs do not have inferior economic performance and their promotion likelihood is negatively related to local emission levels. The findings overall suggest that local officials strategically leverage their expertise in environment protection to allocate more effort on environmental causes.
    JEL: D72 G38 H75 Q53
    Date: 2023–03
  2. By: Wu, Wenjie (Jinan University); Yang, Zhe (Jinan University); Kim, Jun Hyung (Jinan University); Yue, Ai (Shaanxi Normal University)
    Abstract: Climate change poses a significant threat to the development of young children, but its impacts are not well known because of data and methodological limitations. Using a unique panel study in disadvantaged rural communities, we find that exposures to low temperatures undermine subsequent cognitive development before age 5, and reduce caregiver-child interactions and material investments. Results do not support income, health and temporary disruption in cognitive performance as potential channels. By undermining children's home environment, climate change may widen socioeconomic inequalities across households by their capacity to adapt, which is severely limited among disadvantaged households.
    Keywords: early childhood, cognitive skills, home environment, temperature, climate change, China
    JEL: I14 I18 J13 P25
    Date: 2023–03

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