Presented at: Energy and Development Seminar, Sanford, 2024
Abstract: This paper studies how carbon policies in the EU lead to unintentional environmental regulation adjustments in China. Using a novel dataset containing the universe of Chinese environmental penalties and a comprehensive measure of sectoral carbon costs in the EU, we employ a shift-share measure of the exposure to EU carbon price costs among Chinese cities for identification.
We find that higher exposure to export-weighted carbon prices has a sizeable positive impact on environmental regulation stringency. Conversely, industries more dependent on imports from the EU receive slightly fewer penalties. We attribute the stricter policies in Chinese cities primarily to the surge in exports and associated pollution resulting from EU carbon policies as a manifestation of carbon leakage.
Further empirical analysis shows that increased enforcement is targeted at tradable sectors rather than non-tradable industries. However, when local officials adopt more lenient regulations toward sectors adversely affected by higher EU carbon costs, they compensate by imposing more penalties on non-tradable sectors.
Our study contributes to the debate on optimal unilateral carbon and trade policies by offering new insights into how unilateral carbon pricing can trigger passive environmental policy responses abroad, highlighting the complexities of global environmental policy interdependence.
Abstract: This paper investigates the impact of enhanced broadband access on promoting entrepreneurship and business activity in rural China. Leveraging representative household panel survey data and the staggered rollout of a subsidized telecommunications network project from 2016 to 2018, we employ a staggered difference-in-differences strategy to identify causal effects. We find that the project increased rural residents' mobile internet usage and cellphone expenditures and significantly raised the likelihood of rural individuals becoming self-employed, especially among younger, better-educated individuals and women. Moreover, this effect persists and grows over time. Mechanism analyses indicate that the increase in self-employment primarily stems from transitions out of salaried employment rather than from non-employment. Despite a decline in wage income, overall family income rose, accompanied by increased debts owed to acquaintances. The new businesses are predominantly nonservice-oriented, and we document a notable reduction in rural out-migration alongside an increase in return migration. These results suggest that enhanced broadband access promotes entrepreneurship by strengthening social capital, easing credit constraints, expanding market access, and attracting talent to remote areas.
Presented at: USC Economics Development Seminar (Practice Job Talk) 2022, USC Marshall China Workshop 2022, BNU Zhuhai 2023, ESRI 2023, DITE 2024 Workshop, CES NA Conference 2024 (Bucknell), SEHO 2024 (SMU), AMES2024-China (ZJU), EEA-ESEM 2024 (Erasmus), EALE 2024 (NHH)
Abstract: This paper investigates the impacts of China's relaxation of the one-child policy on women's labor market outcomes. I utilize the relaxation timing across different couples in a staggered difference-in-differences design and make use of the China Family Panel Survey (CFPS) from 2010 to 2020. The results reveal that affected women had higher birth rates but experienced lower working status by 3.2 percentage points. They also worked 2.654 fewer hours per week, had 8.8% lower wage rates, received fewer job offers, and were 90% more likely to be forced to leave their previous jobs. The analysis further indicates that these impacts were most pronounced among women at prime age and mothers of an only child, particularly an only daughter. This suggests that the indirect impacts of the policy change, caused by employers' mistreatment of newly eligible women and their overestimation of female employees' fertility willingness, were the main contributors to the negative impacts on women's labor market outcomes. Dynamic analysis using multiple methods shows that affected women quickly returned to work after two years, with long-lasting impacts on work time and wage rates.
Publications
Creative Industry and Transformation of Economy Structure (with Na Zhao and Yuxun Wang), Economic Science (Chinese), 2014, 102-115
Works in Progress
Environmental Bias of Coal Price Ceiling in China (with Ruozi Song) Development
Abstract: Coming soon.
Co-living and Child Penalty (with Kang Zhou) Development
Abstract: Coming soon.
Teaching
Teaching Assistant
Econ 203: Principles of Microeconomics (instructor of discuss sessions), USC (Spring 2022)