Publications
Window Dressing: Changes in Atmospheric Pollution at Boundaries in Response to Regional Environmental Policy in China
Journal of Environmental Economics and Management, Volume 125 (May 2024)
[Journal link] | [manuscript]
Abstract: In decentralized environmental governance, local governments are likely to adopt the "beggar-thy-neighbor" strategy to relax regulations at boundaries. This study investigates the impact of China's Joint Atmospheric Prevention and Control Policy (JAPCP) in "2+26" cities enforced by the central government on pollution at provincial boundaries. The theoretical model suggests that dual incentives for environmental protection and economic growth may prompt local governments to reduce boundary pollution within the JAPCP-covered area while relocating pollution to uncovered boundaries. Based on Shandong Province data using the difference-in-differences approach, our analysis reveals a 9.6% decline in the air quality at JAPCP-covered boundaries compared to non-boundary areas and a 5.3% increase at JAPCP-uncovered boundaries, which is associated with migration of key regulated industries. Through examining annual work reports, we provide evidence that local governments modify regulatory intensity at various boundaries. These findings indicate that, while regional environmental policies are intended to promote inter-jurisdictional cooperation, the local government responses lead to unintended costs.
Working Papers and Selected Works in Progress
Segmented Empire, Integrated Regions: Multilayered Administrative Boundaries and Labor Market Fragmentation in Late Imperial China
Under review at The Journal of Economic History.
The "Demons" in Demonstration: Unintended Consequences of Superstar-oriented R&D Subsidy Policy in China
"Outstanding Paper" at The 50th Beijing Camphor Economic Circle (CEC) Seminar (2025)
Presented at:
- The 50th Beijing Camphor Economic Circle (CEC) Seminar, Beijing, China (2025)
[working paper (August 2025)] New Version!
Abstract: This paper examines the unintended consequences of selective R&D subsidy policies that target leading firms, focusing on the innovation activities of non-subsidized competitors and new entrants. Although such subsidies are typically intended to stimulate innovation, the paper utilizes a Schumpeterian model to demonstrate that they may, in fact, discourage innovation among competitor firms and deter the entry of new firms, thereby undermining aggregate innovation. Empirical evidence from the "National Technological Innovation Demonstration Firm (NTIDF)" policy in China substantiates these theoretical predictions, showing a 21.7% increase in R&D expenditure by subsidized firms, contrasted with a 30% reduction in R&D investment among competitor firms lagging behind the productivity frontier and a 7.6% decline in private firm entry. Taken together, these divergent effects lead to an average 8.3% decrease in quality-weighted patent outputs at the industry–city pairs where certified demonstration firms are located. The paper highlights the necessity of accounting for competitive dynamics in the design of innovation policies.
Land Titling Reform and Spatial Redistribution: Mitigating Effects of Urban Construction Land Allocation
"Outstanding Paper" at The 1st Economic Thought Theory and Practice Forum (2023)
Presented at:
- The 1st Economic Thought Theory and Practice Forum, Zhejiang, China (2023)
[working paper (January 2024)] | [slides (in Chinese) (December 2023)]
Abstract: This paper explores the impact of land titling reform on population mobility and its economic effects in China. Using a quantitative spatial model that accounts for imperfect land ownership and targeted urban construction land allocation, I find that the reform significantly boosts rural-to-urban labor migration, improving labor allocation efficiency and raising national welfare. However, without changes in land supply, labor mobility causes regional redistribution effects, negatively impacting local residents in the urban sector. My analysis shows that the planning allocation of urban construction land by China's central government during 2010 and 2017 mitigated these redistribution effects. Additionally, simulations of optimal land allocation suggest that China's current land allocating pattern places too much emphasis on regional balance at the expense of economic efficiency.
Lineage Ties and Migration Dynamics: Clan Strength, Policy, and Demographic Divergence in Qing China
(in progress)