nep-cna New Economics Papers
on China
Issue of 2023‒11‒06
eight papers chosen by
Zheng Fang, Ohio State University

  1. The Impact of the Energy Conservation Law on Enterprise Energy Efficiency: Quasi-Experimental Evidence from Chinese Firms By Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
  2. Non-Meritocrats or Conformist Meritocrats? A Redistribution Experiment in China and France By Belguise, Margot; Huang, Yuchen; Mo, Zhexun
  3. Trends in Chinese value chains 2018-2022 By Simola, Heli
  4. Harmonizing the Yin and Yang: Gender Disparities in Subjective Well-Being after Retirement in China By Erkmen G. Aslim; Shin-Yi Chou; Han Yu
  5. Consumer Confidence and Stock Markets' Returns By Raquel M. Gaspar; Xu Jiaming
  6. Review on Decarbonizing the Transportation Sector in China: Overview, Analysis, and Perspectives By Jiewei Li; Ling Jin; Han Deng; Lin Yang
  7. Do shared E-bikes reduce urban carbon emissions? By Li, Qiumeng; Fuerst, Franz; Luca, Davide
  8. Demographic Change and Long-Term Economic Growth Path in Asia By Jong-Wha Lee; Eunbi Song

  1. By: Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
    Abstract: We employ a regression discontinuity design (RDD) to investigate the causal effect of China's Energy Conservation Law (ECL) on the energy efficiency of Chinese firms. Using data from the 2018 China Employer-Employee Survey (CEES), we find that the energy regulation has a positive impact on enterprise energy efficiency. Furthermore, we observe that the effects of the regulation vary across industries, ownership types, and firm ages. We also find that energy management system (EnMS) and technological innovation are mechanisms through which the energy regulation helps improve enterprise energy efficiency. These findings underscore the importance of well-designed and effectively implemented energy regulations in fostering energy efficiency and reducing carbon emissions in the industrial sector. They also highlight the need to consider the heterogeneity of the regulatory impact when designing energy-saving policies.
    Keywords: Energy Conservation Law, energy regulation, energy efficiency, China, regression discontinuity design
    JEL: K32 Q56 Q58
    Date: 2023
  2. By: Belguise, Margot; Huang, Yuchen; Mo, Zhexun
    Abstract: Recent empirical evidence contends that meritocratic ideals are mainly a Western phenomenon. Intriguingly, the Chinese people appear to not differentiate between merit- and luck-based inequalities, despite their rich historical legacy of meritocratic institutions. We propose that this phenomenon might be due to the Chinese public’s greater adherence towards the status quo. In order to test this hypothesis, we run an incentivized redistribution experiment with elite university students in China and France, by varying the initial split of payoffs between two real-life workers to redistribute from. We show that Chinese respondents consistently and significantly choose more non-redistribution (playing the status quo) across both highly unequal and relatively equal status quo scenarios than our French respondents. Additionally, we also show that the Chinese sample does differentiate between merit- and luck-based inequalities, and does not redistribute less than the French absent status quo conformity. Ultimately, we contend that such a phenomenon is indicative of low political agency rather than apathy, inattention, or libertarian beliefs among the Chinese. Notably, our findings show that Chinese individuals’ conformity to the status quo is particularly pronounced among those from families of working-class and farming backgrounds, while it is conspicuously absent among individuals whose families have closer ties to the private sector.
    Keywords: Meritocracy, Fairness Preferences, Spectator Games, China-France Comparison, Beliefs, Redistribution, Status quo Bias, Market Economy in China
    Date: 2023–10
  3. By: Simola, Heli
    Abstract: We examine recent changes in the structure of Chinese manufacturing value chains using a standard input-output framework. Our results suggest that the previous increasing trend in the share of domestic value added in Chinese value chains stalled during our observation period (2018-2022). We also note a shift in the geographic structure of foreign value added embodied in Chinese value chains. These changes seem to be mainly associated with trade policy measures implemented by China and other countries. China's share has increased in the foreign value added embodied in manufacturing value chains of the US, EU and Russia.
    Keywords: value-added trade, global value chains, fragmentation, input-output, China
    Date: 2023
  4. By: Erkmen G. Aslim; Shin-Yi Chou; Han Yu
    Abstract: China’s distinctive demographic landscape, early retirement policies, and deeply ingrained gender norms provide a unique backdrop for investigating gender disparities in retirement and subjective well-being. Drawing upon data from the China Family Panel Studies and leveraging the variation around the pensionable age cutoff, we find substantial increases in retirement rates, surging by 19 percentage points for males and 13 percentage points for females in proximity to this age threshold. Notably, retirement manifests significant gender heterogeneity in its influence on life satisfaction, leading to an enhancement among males while not yielding statistically significant improvements among females. Furthermore, this study probes multiple dimensions of subjective well-being and objective health behaviors, laying bare gender disparities in health, behaviors, perceptions of income and social status, and confidence about the future. Males showcase improvements in healthy behaviors, report enhanced self-perceived health, perceive higher relative income and social status, and exude greater confidence about their future. In stark contrast, females show no statistically significant changes along these dimensions. In fact, they tend to engage in health-compromising behaviors, such as increased smoking, and exhibit higher rates of obesity. These findings underscore the imperative of recognizing gender disparities in the consequences of retirement on subjective well-being. They highlight the need for targeted policies aimed at enhancing social and economic opportunities for women, ultimately striving for greater gender equality in the post-retirement phase.
    JEL: I10 I12 I31 J16 J26
    Date: 2023–10
  5. By: Raquel M. Gaspar; Xu Jiaming
    Abstract: This study provides new insights on the relationship between changes in consumer confidence indices worldwide and the performance of European, United States and Chinese stock markets, during the period from 2007 to 2021. We look both into global and industry returns. For the full-time period, we find stock market returns tend to be positively correlated with changes in consumer confidence indices, with significant two-way Granger causal impacts between the two variables for Europe and the United States. For the Chinese stock market we find less pronounced and only one-way impact { changes in consumer con dence indices can Granger explain Chinese stock returns, but not vice versa. In fact, Chinese stock returns only help explaining changes in East Asian consumer confidence index. These results are robust across industries. For the Covid pandemic sub-period, we find some negative correlations between stock market returns and changes in consumer confidence indices. This is particularly evident in China, but it also happens in Europe and United States, at least for some industries, including Health Care. Overall, the connection between the stock market performance and changes in consumer confidence is lower for USA and European stock markets, but it is higher for the Chinese stock market, in terms of the number of significant outcomes.
    Keywords: Consumer confidence index, Stock returns, Granger causality.
    JEL: G00 G11 G15
    Date: 2023–10
  6. By: Jiewei Li; Ling Jin; Han Deng; Lin Yang
    Abstract: This review identifies challenges and effective strategies to decarbonize China's rapidly growing transportation sector, currently the third largest carbon emitter, considering China's commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Key challenges include rising travel demand, unreached peak car ownership, declining bus ridership, gaps between energy technology research and practical application, and limited institutional capacity for decarbonization. This review categorizes current decarbonization measures, strategies, and policies in China's transportation sector using the "Avoid, Shift, Improve" framework, complemented by a novel strategic vector of "Institutional Capacity & Technology Development" to capture broader development perspectives. This comprehensive analysis aims to facilitate informed decision-making and promote collaborative strategies for China's transition to a sustainable transportation future.
    Date: 2023–10
  7. By: Li, Qiumeng; Fuerst, Franz; Luca, Davide
    Abstract: Under the threat of climate change, many global cities nowadays are promoting shared commuting modes to reduce greenhouse gas emissions. Shared electric bikes (e-bikes) are emerging modes that compete with bikes, cars, or public transit. However, there is a lack of empirical evidence for the net effect of shared e-bikes on carbon emissions, as shared e-bikes can substitute for both higher carbon emissions modes and cleaner commuting modes. Using a large collection of spatio-temporal trajectory data of shared e-bike trips in two provincial cities (Chengdu and Kunming) in China, this study develops a travel mode substitution model to identify the changes in travel modes due to the introduction of shared e-bike systems and to quantify the corresponding impact on net carbon emissions. We find that, on average, shared e-bikes decrease carbon emissions by 108–120 g per kilometre. More interestingly, the reduction effect is much stronger in underdeveloped non-central areas with lower density, less diversified land use, lower accessibility, and lower economic level. Although the actual carbon reduction benefits of shared e-bike schemes are far from clear, this study bears important policy implications for exploring this emerging micro-mobility mode to achieve carbon reduction impacts.
    Keywords: carbon emissions; E-bikes; micro-mobility; sharing economy; substitution effects; yrban context
    JEL: J1
    Date: 2023–10–01
  8. By: Jong-Wha Lee; Eunbi Song
    Abstract: This study analyzes Asia’s economic prospects over the next half-century, focusing on demographic changes. To project the GDP and per capita GDP growth rates for the five major Asian countries and the United States (US) until 2070, an endogenous growth model is used where physical and human capital accumulation, technological progress, and substitution between physical capital and labor are important determinants of the long-term growth rate. The simulation results show that while the declining labor force growth and an aging population have a long-term negative impact on economic growth, they will not predetermine the future of Asian economies. Highlighted is the importance of promoting technological innovation as well as investment in physical and human capital to sustain strong growth in Asian economies. China's average annual GDP growth is expected to decline to between 1.5% and 2.4% during 2051–2070, subject to scenarios. China’s higher growth trajectory could approach about 85% of the US PPP-adjusted per capita GDP by 2070. India is projected to surpass the US in PPP-adjusted GDP by 2050 and China by 2070.
    Keywords: Asia, demographic changes, economic growth, human capital, technological progress
    JEL: J11 J24 O33 O41 O53
    Date: 2023–10

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