China Economic Quarterly International (CEQI)

Volume 5, Number 1

March 2025

 

The adaptation level and mechanism of grain production to climate change in China

Dong Liu, Xiaolong Feng and Wei Si

 

Climate finance and the labor income share of enterprises: Evidence from China

Hong Li, Xiaohui Chen and Yan Peng

 

The economic welfare impacts of transnational clan networks: Evidence from transnational clan genealogies

Fanghao Chen, Yibo Zuo and Denggao Long

 

Climate change has increased household electricity Consumption — An adaptive behavioral perspective

Jieyu Li and Kun He

 

Does outward foreign direct investment improve environmental quality in home country? — Evidence from Chinese firms’ water pollution emissions

Suhua Tian and Qin Xiong

 

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The adaptation level and mechanism of grain production to climate change in China

Dong Liu, Xiaolong Feng and Wei Si

Abstract

The overall adaptation level and mechanisms of grain production to climate change are estimated using national rural fixed observation points data. Adaptive behaviors have alleviated 52.5 ​%–63.5 ​% of the adverse impacts of high temperatures, with rice and maize more adaptable than wheat. However, adaptive behavior has not effectively mitigated excessive precipitation impacts. Technological progress, adaptation technology adoption, and input adjustments are key adaptation mechanisms. Future efforts should enhance agricultural technological contributions to comprehensively strengthen the adaptation capacity of grain production to climate change.

 

Climate finance and the labor income share of enterprises: Evidence from China

Hong Li, Xiaohui Chen and Yan Peng

Abstract

Climate finance refers to the financing that addresses climate change. Its implementation affects industrial relations, and the labor income share of enterprises. This study conducts theoretical and empirical analyses to explore the impact of climate finance on the labor income share of Chinese A-share listed enterprises. Leveraging panel data spanning from 2008 to 2022 and drawing on strategic choice theory, the research reveals a positive U-shaped relationship between climate finance and enterprises’ labor income share. Mediation analysis further uncovers that climate finance reduces labor income share by increasing debt default risk while raising it through a higher labor-capital ratio. Industry heterogeneity analysis indicates that the negative effect is more pronounced in heavy-pollution industries. As the first investigation of the climate finance-labor income share nexus in China, this study offers crucial insights for policymakers balancing environmental and labor market objectives.

 

The economic welfare impacts of transnational clan networks: Evidence from transnational clan genealogies

Fanghao Chen, Yibo Zuo and Denggao Long

Abstract

Surnames with a higher presence of overseas Chinese in the same region exhibit the following characteristics: (1) better housing conditions, but no significant improvement in educational attainment or labor income; (2) a higher likelihood of economic dependency on other family members; (3) lower labor participation rates, shorter working hours, and a higher propensity for entrepreneurship. On the one hand, the economic support from overseas relatives improves the living conditions of local members but crowds out some of their investment in human capital and labor participation. On the other hand, the transnational clan networks provide access to overseas market information and financial support, facilitating engagement in export-oriented businesses and promoting entrepreneurial activities.

 

Climate change has increased household electricity Consumption — An adaptive behavioral perspective

Jieyu Li and Kun He

Abstract

Using the panel data of 244 cities from 2011 to 2020, this paper constructs temperature deviation indicators and evaluates the effects of climate change on electricity consumption from an adaptive behavioral perspective. This paper finds that cooling degree days (CDD) push up electricity consumption, among which the purchase and use of air conditioners contribute about 58.7 ​% – 78.7 ​%. Heterogeneity analysis reveals that extreme temperature, humidity, and income strengthen the response of electricity consumption and air conditioner purchase to CDD. Technological advancements that reduce air conditioning energy consumption can only partially alleviate the positive impact of air conditioning usage duration on household electricity consumption.

 

Does outward foreign direct investment improve environmental quality in home country? — Evidence from Chinese firms’ water pollution emissions

Suhua Tian and Qin Xiong

Abstract

This paper empirically examines the causal effect and mechanisms of China's outward foreign direct investment (OFDI) on pollution emissions. Employing the difference-in-differences (DID) alongside various heterogeneity robust estimation methods based on a series of firm-level data, our findings indicate that OFDI significantly reduces firms' chemical oxygen demand (COD) emissions. Moreover, it increases total output while reducing COD emission intensity. The mechanism analysis suggests that firms primarily attain emission reductions through reverse technology spillovers stemming from OFDI in host countries with more stringent environmental regulations. Additionally, such reductions are facilitated by improvements along both the intensive and extensive margins of exports.