The side effects of local government debt: Evidence from urban investment bonds and corporate pollution in China.

Local government debt plays a vital role in achieving financial financialization and regional economic growth. However, the environmental side effects of the debt-financed infrastructure development model have received little attention. Using a large panel data of Chinese enterprises from 2007 to 2016, we explored the relationship between local government debt in terms of urban investment bonds and corporate pollution emission. We observe that the increase in local government debt exaggerates the intensity of COD emission, equal to 26% of the average. This pollution-promoting effect remains after a series of robust checks. In heterogeneous analysis, local government debt is more likely to affect enterprises located in coastal areas, from pollution intensive industry, operating in regions with weak fiscal strength and operating in regions with low governance quality. The mechanistic exploration from government environmental governance and financial constraint reveals that the local government debt increases corporate pollution when the local fiscal finance emphasizes economy over environmental governance, which has been alleviated after the central government advocates the construction of an environmentally friendly and resource-saving society; An increase of corporate pollution is also possible when local government debt increases the financing constraints of enterprises. We also unveil the source of corporate pollution, and find that if enterprises do not actively adopt environmental strategies either in terms of "end-of-pipe" or "source prevention", they choose to emit more to face with the onslaught of local debt. This study uncovers the environmental impacts of government debt, and explores the potential mechanisms, which can help reduce pollution from local government debt and achieve global climate governance.

Heatwave and mental health.

Physical health has been associated with ambient temperature and heatwave. With the frequent occurrence of heatwave, the adaptive effects and mechanisms on mental health remain uncertain. On the basis of the China Health and Nutrition Survey, we estimated the relationship between heatwaves and self-assessed mental health scores in the Chinese population aged 50 and above. This study has identified that with each additional heatwave event, mental health scores decreased by an average of 0.027 points, which is equivalent to 0.3% of the average level. Heat is more likely to affect groups with low education, no medical insurance, and living in rural areas. In mechanistic exploration, we found that stress emotion is a fully mediating effect. Heat led to reduced health activities and more frequent drinking, which may lead to lower psychological well-being. Moreover, good dietary preference is a regulator that can help mitigate the adverse effects of heat on mental health. This study corroborates the impact of heat on spiritual welfare, and demonstrates the mechanisms and channels of impact, which can help reduce global economic losses due to mental health problems.

The spatiotemporal evolution and influencing factors of urban green innovation in China.

Green innovation (GI) is an important way to build an ecological civilization and an innovative country. The study on urban green innovation (UGI) is of great significance for enriching the research on GI and rationally formulating high-quality urban development policies. The green patent data obtained using a web crawler was used to represent the level of UGI. The spatiotemporal evolution and influencing factors of UGI in China were analyzed by standard deviation ellipses, spatial autocorrelation, and Geodetector. The research shows that: From 2005 to 2020, the level of UGI in China tended to rise rapidly. The center of gravity of UGI in China was located in the southeast of China's geometric center and tended to move to the south and west. The standard deviation ellipse was distributed in a "northeast-southwest" pattern, the area was gradually shrinking, and the length of the two semi-axes was shortening. UGI in China showed obvious global and local spatial autocorrelations. The degree of global spatial autocorrelation was gradually increasing. Among the types of local spatial autocorrelation, the largest number of low-low agglomeration cities was mainly located in the northwest and southwest part of China, while high-high agglomeration cities were distributed in Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta. The government intervention expressed by the proportion of scientific and technological expenditure in fiscal expenditure and environmental regulation is the dominant factor affecting UGI.

Blue sky defense in low-carbon pilot cities: A spatial spillover perspective of carbon emission efficiency.

The improvement of carbon emission efficiency is crucial to the realization of the global carbon peaking and carbon neutrality goals. Based on the panel data of 282 cities from 2004 to 2018 in China, this paper employs the stochastic frontier analysis approach combined with the Sheppard distance function to calculate the total factor carbon emission efficiency of each city. Regarding the low-carbon pilot city policy as a quasi-natural experiment, we evaluate the impact of the pilot policy on carbon emission efficiency and its spatial spillover effect using the spatial difference-in-differences model. The results show that the pilot policy can significantly improve the carbon emission efficiency and has long-term dynamic effects. Also, the effect of the policy has spatial spillover, and has a positive impact on the neighboring cities. Mechanism analysis implies that optimal allocation of resources, energy conservation and green technology innovation make the low-carbon policy play an important intermediary role in promoting carbon emission efficiency. Besides, the effects of the pilot policy have obvious heterogeneity, especially cities in large, higher population densities and the north. These findings reveal that low-carbon pilot city policies are indispensable for both implementing the dual-carbon strategy and winning the defense for the blue sky.

Evaluating the water-saving and wastewater-reducing effects of water rights trading pilots: Evidence from a quasi-natural experiment.

Water rights trading is a market mechanism that promotes the conservation, protection and optimal allocation of water resources. This paper takes the water rights trading pilots' policy as a quasi-natural experiment, and then adopts the spatial difference-in-differences model to investigate the water-saving and wastewater-reducing effects of water rights trading pilots by using the panel data of 30 provinces in China from 2006 to 2019. The results indicate that water rights trading has good environmental governance effects on water-saving and wastewater-reducing in the pilot areas. However, water rights transactions are mainly concentrated within provinces, and there is no spatial spillover effect. Besides, the pilot policy has more long-term dynamic effects in reducing sewage discharge than water-saving due to rebound effect possibly. The optimization of the industrial structure and environmental regulation play important roles in the realization of the policy effects of the water rights trading pilots. An important implication is that water rights trading pilots are worthy of promotion throughout China in view of the policy effects, and China should focus on inter-regional market transactions and industrial structure transformation to promote the optimization of the water rights trading mechanism.

The effect of the new Environmental Protection Law on corporate financialization in China.

Using data from non-financial listed firms in China from 2008 to 2020, this study investigates the effect of the new Environmental Protection Law on corporate financialization based on the difference-in-differences model. Findings show that the law's implementation significantly increases the financialization behaviors of corporations in polluting industries. This effect remains robust after a series of robustness checks. Heterogeneity analyses suggest that the policy effect of the law is more pronounced for non-state-owned enterprises, enterprises with high fixed assets ratios, and enterprises in regions with excellent market competition. The new Environmental Protection Law also promotes the financialization of enterprises by increasing costs, reducing commercial credit financing capabilities, increasing risks, and hindering innovation. This article provides new evidence for understanding macro-environmental regulation and micro-firm effects.

Effect on the health of newborns caused by extreme temperature in Guangzhou.

By using 64,270 daily observations from a large hospital in Guangzhou between 2017 and 2019, we analyzed the impact of extreme temperature on the health of newborns via OLS regression with time fixed effect. Given that the short-term temperature change can be regarded as exogenous and random, solving the potential endogenous problem is critical. We find that extreme temperature negatively affects the health of newborns. The Apgar score, an index for evaluating neonatal health, decreases by 0.008 (0.029%) when the duration of extreme temperature events increases by a day. A series of robustness checks verify the reliability of this negative effect. Extreme temperature also has a particularly serious effect on the health of newborns whose mothers have poor education. By gradually extending the observation period, we find that the effect of extreme temperature on neonatal health is mainly concentrated 1-6 weeks before delivery, whereas the effect of extreme temperature on hospitalization cost is mainly concentrated 4-8 weeks before delivery. This paper provides a valuable reference for evaluating the health and social costs of extreme weather, and our findings are conducive to the construction of climate-resilient health systems, especially in Guangzhou.

Does institutional quality affect air pollution?

As environmental pollution brings a series of problems to society and residential lives, how to effectively reduce air pollution and control climate change have become urgent problems. Since institutional quality is an important factor affecting air quality, we evaluated the causal relationship between them based on cross-country panel data from 2000 to 2016. We find that the improvement of institutional quality significantly reduces [Formula: see text], and this pollution reduction effect is obvious in high-income countries and in countries with common laws. Furthermore, under the components of institutional quality, the quality of government regulation, the degree of rule of law, corruption control, and government effectiveness have significant emission reduction effects. To explore how institutional quality affects air pollution, we perform mechanism analysis from the perspective of economic development, foreign trade, and technology progress. We further verify three environmental propositions including the Environmental Kuznets Curve, the Pollution Paradise Hypothesis, and Porter Hypothesis. Results show that the pollution reduction effect of institutional quality can be mediated by economic development rate, foreign direct investment, and technological progress. The Environmental Kuznets Curve exists, the Pollution Paradise Hypothesis is validated in countries with lower institutional quality level, and the improvement of the institutional quality can achieve the Porter Effect through technological progress.

Sustainability drivers in road transportation system: Evidence from China.

This research explores the sustainability drivers of the Chinese road transportation system in terms of its cargo and environmental productivity levels. A novel Fuzzy Double-Frontier Network Data Envelopment Analysis (FDFNDEA) model is proposed to investigate the relationship between desirable (freight and passenger turnovers) and undesirable (CO2 and NOx emission levels) outputs against the respective power consumed in each one of the 29 Chinese provinces (municipalities and autonomous regions) between 1985 and 2017. The power consumption emerges spatially and temporally as a consequence of the evolution of the road system's productive resources (employees, highway length, number of vehicles, and fuel consumed) at the province level over the course of time. Shannon's entropy is used as the cornerstone to quantify input and output vagueness of this evolution in terms of triangular fuzzy numbers (TFN), thus allowing the building of alternative optimistic and pessimistic double efficiency frontiers. Respective Malmquist Productivity Indexes (MPI) for overall and each stage productivity are regressed against contextual variables related to demography, economic activity, competitor infrastructure, and highway quality using bootstrapped Cauchy regressions. Results confirm the disruptive evolution of the Chinese road transport system over the course of the years and different expansion strategies at the regions. The energy and environmental efficiency of the Chinese road transportation system is affected by these contextual variables.

Have driving restrictions reduced air pollution: evidence from prefecture-level cities of China.

With rapid economic development, air pollution became a serious problem in China. Vehicle's exhaust emissions are among the main sources of air pollution. With samples of 173 prefecture-level cities in China from 2006 to 2016, this paper takes the implementation of driving restrictions as a quasi-natural experiment to examine the relationship between driving restrictions and air quality through the difference-in-differences method based on the propensity score matching. Results indicate that driving restrictions have not improved the air quality in terms of average treatment effect as there is no clear evidence that people turn from private cars to busses or subways. Furthermore, heterogeneous effects of driving restrictions exist across different regions and cities of China. The implementation of driving restrictions has significantly positive impacts on air pollution in the Eastern and Central cities of China, while it has significantly negative effects in non-capital cities. This study implies that the development of local public transportation needs to be taken into account when formulating the policy of driving restrictions.

Have traffic restrictions improved air quality? A shock from COVID-19.

With the outbreak of COVID-19 (Corona Virus Disease, 2019), China adopted traffic restrictions to reduce the spread of COVID-19. Using daily data before and after the outbreak of COVID-19, an exogenous shock, this paper analyzes the effects of private vehicle restriction policies on air pollution. We find that the private vehicle restriction policies reduce the degree of air pollution to a certain extent. However, their effect varies with other policies implemented in the same period and the economic development of the city itself. Through the analysis of different categories of restrictions, we find that restriction policy for local fuel vehicles and the restriction policy based on the last digit of license plate numbers have the best effect in reducing air pollution. Under the background of COVID-19 epidemic and the implementation of private vehicle restriction policies and other traffic control policies during this period, we have also obtained other enlightenment on air pollution control.

Modelling stock market data in China: Crisis and Coronavirus.

Global financial markets experienced distinct collapses during the global financial crisis in 2008 and the COVID-19 pandemic in 2020, and similarity in the underlying nature is still a hot topic to be investigated. This paper investigates their degree of persistence in order to detect whether the shocks affecting them have temporary or permanent effects by examining the closing prices of the Shanghai and Shenzhen Composite Indices from 1991 to 2020. The results before the coronavirus indicate large degrees of persistence with shocks having permanent effects, while during the coronavirus the results indicate a mean reversion with shocks having temporary effects.

Evaluating the effectiveness of the water-saving society construction in China: A quasi-natural experiment.

The conservation and efficient use of water resources are directly related to the sustainable and high-quality development in China. This paper regards the pilot policy of water-saving society construction as a quasi-natural experiment, and employs a differences-in-differences approach to evaluate the effectiveness of urban water-saving policies and exploit its drive mechanism by using the panel data of 263 cities in China from 2001 to 2016. Findings show that the pilot policy of water-saving society construction can achieve better water-saving effects, which can not only promote the reduction of urban water consumption in intensity and total amount, but also improve the efficiency of water resources utilization. And this policy has brought long-term dynamic effects on the urban water resources conservation. Heterogeneous effects exist in different types of cities, that is, the water-saving performance is more significant in cities with sufficient water resources and in central China. Besides, this paper finds that the impact of this water-saving policy on urban water resource conservation is mainly through two channels such as water resources infrastructure investment and water resources pricing. These findings provide useful inspirations for local governments to take effective economic measures to manage water resources.

Cost of economic growth: Air pollution and health expenditure.

This study examines the causal effect of air pollution on health expenditure using a sample of the China Health and Nutrition Survey in 2015. It concludes that exposure to air pollution is associated with the increase in health expenditure with an elasticity of 10.013. The coefficient is roughly seven times bigger than the cost of traditional respiratory diseases. The large coefficient will be the social cost of medical insurance and various diseases. Results also indicate that sample mobility can underestimate health cost. Meanwhile, we identify heterogeneity among different populations and pollutants. The estimates show that PM2.5 is the main cause of health expenditure and that males, high-income individuals, highly educated individuals, people with health insurance, and older people are more sensitive to air pollution. Moreover, our evidence suggests that air pollution nonlinearly affects health expenditure. We also find that the mechanism is through diseases occurrence and diseases severity to increase health expenditure.

Urbanization and energy intensity: evidence from the institutional threshold effect.

This research, which considers the rapid growth of urbanization and the concerns about energy security, analyzes the effect of urbanization on energy intensity by using the panel data of 72 countries between 2000 and 2014. The impact of institutional quality on the relationship between urbanization and energy intensity is also evaluated on the basis of a panel threshold model. Results suggest that the increase in urbanization leads to higher energy intensity. However, this positive effect of urbanization on energy intensity can be weakened by 0.033 when the institutional quality exceeds the threshold value. The positive mediating effect of institutional quality comprises approximately 31.37% of the total effect. Furthermore, the institutional threshold effect varies across country income and energy types, and it promotes more energy reduction and less energy consumption in OECD and non-OECD groups, respectively. The institutional threshold effect is only significant for fossil energy group but not for the renewable energy group.

Sustainability efficiency and carbon inequality of the Chinese transportation system: A Robust Bayesian Stochastic Frontier Analysis.

This study focuses on the sustainability efficiency of the Chinese transportation system by investigating the relationship between CO2 emission levels and the respective freight and passenger turnovers for each transportation mode from January 1999 to December 2017. A novel Robust Bayesian Stochastic Frontier Analysis (RBSFA) is developed by taking carbon inequality into account. In this model, the aggregated variance/covariance matrix for the three classical distributional assumptions of the inefficiency term-Gamma, Exponential, and Half-Normal-is minimized, yielding lower Deviance Information Criteria when compared to each classical assumption separately. Results are controlled for the impact of major macro-economic variables related to fiscal policy, monetary policy, inflationary pressure, and economic activity. Results indicate that the Chinese transportation system shows high sustainability efficiency with relatively small random fluctuations explained by macro-economic policies. Waterway, railway, and roadway transportation modes improved sustainability efficiency of freight traffic while only the railway transportation mode improved sustainability efficiency of passenger traffic. However, the air transportation mode decreased sustainability efficiency of both freight and passenger traffic. The present research helps in reaching governmental policies based not only on the internal dynamics of carbon inequality among different transportation modes, but also in terms of macro-economic impacts on the Chinese transportation sector.

Has the medical reform improved the cost efficiency of Chinese hospitals?

After three decades of reform, the medical care system in China has experienced significant changes. However, the present research has not made a tentative evaluation of it to justify further reform. This paper analyses the cost efficiency of Chinese hospitals in 31 provinces during the period from 2002 to 2011 and adopts a Bayesian stochastic frontier model taking account of the identified heterogeneity according to the background of Chinese medical system reform, including the coastal location, 3A class hospital proportion, public subsidies and medical insurance reforms. It finds that the public subsidies and medical insurance reforms have improved the cost efficiency of Chinese hospitals, while the coastal location and 3A class hospital proportion have decreased the cost efficiency of Chinese hospitals. Therefore, these results imply that it will be beneficial for Chinese medical system to optimize the fiscal subsidies of public hospitals, encourage the entrance of private hospitals, improve the medical insurance coverage and set up the pre-triage system.