Discrimination, Income Determination and Inequality – The case of Shenzhen

This paper estimates the income effect of non productivity related discriminatory factors, compared to productivity related returns on human capital in Shenzhen. The design of the Shenzhen Household Survey 2005 that was employed enables us to include a large set of discriminating factors in a Mincer Becker type of income model. Further, we are able to take a unique look at the migrant population in this outstanding urban centre. Our results show that the human capital approach holds. We also find strong evidence of a significant influence of social norms and policies, particularly relevant in a developing and transition economy, even in such an exceptional city.Shenzhen, Income distribution, Education, Transition process

Spatial spillover effects in determining China\u27s regional CO2 emission growth : 2007-2010

This paper proposes an alternative input-output based spatial-structural decomposition analysis to elucidate the role of domestic-regional heterogeneity and interregional spillover effects in determining China\u27s regional CO2 emission growth. Our empirical results based on the 2007 and 2010 Chinese interregional input-output tables show that the changes in most regions\u27 final demand scale, final expenditure structure and export scale give positive spatial spillover effects on other regions\u27 CO2 emission growth, the changes in most regions\u27 consumption and export preference help the reduction of other regions\u27 CO2 emissions, the changes in production technology, and investment preference may give positive or negative impacts on other region\u27s CO2 emission growth through domestic supply chains. For some regions, the aggregate spillover effect from other regions may be larger than the intra-regional effect in determining regional emission growth. All these facts can significantly help better and deeper understanding on the driving forces of China\u27s regional CO2 emission growth, thus can enrich the policy implication concerning a narrow definition of "carbon leakage" through domestic-interregional trade, and relevant political consensus about the responsibility sharing between developed and developing regions inside China

China\u27s inter-regional spillover of carbon emissions and domestic supply chains

In this study, we apply the inter-regional input–output model to explain the relationship between China’s inter-regional spillover of CO2 emissions and domestic supply chains for 2002 and 2007. Based on this model, we propose alternative indicators such as the trade in CO2 emissions, CO2 emissions in trade, regional trade balances, and comparative advantage of CO2 emissions. The empirical results not only reveal the nature and significance of inter-regional environmental spillover within China’s domestic regions but also demonstrate how CO2 emissions are created and distributed across regions via domestic production networks. The main finding shows that a region’s CO2 emissions depend on not only its intra-regional production technique, energy use efficiency but also its position and participation degree in domestic and global supply chains

China\u27s provincial carbon emission transfers and the effectiveness of mitigation polices

The complexity of shared emissions responsibility for carbon transfers in various regions of China has further raised additional challenges for energy savings and carbon mitigation efforts. This paper establishes an extended provincial input-output (IO) model for each province to calculate carbon emissions based on production, consumption, and transfers from 2005 through 2015, and examines whether carbon mitigation policies can effectively promote energy conservation and emissions reduction in the various provinces. The empirical analysis established that: (1) an increase in the implementation strength of mitigation policy can effectively reduce production-based carbon emissions amongst the different provinces; (2) stricter mitigation policy increases the possibility that a province will transfer more of their emissions to other areas, thus causing a net emissions outflow; and (3) subsequent policy enforcement will weaken once mitigation goals are accomplished. Therefore, this paper repudiates the accepted belief that mitigation policy effectively controls carbon emissions, especially for production-based emissions. More refined policy design and supplementation is needed when considering consumption-based emissions and related carbon transfers

The forces driving inequalities in China\u27s household carbon footprints

Household carbon footprints account for a large proportion of total emissions. When considering indirect emissions through the consumption of goods and services, a high level of carbon footprint inequality exists both worldwide and within China. Utilizing both provincial level input-output tables and micro-level household survey data, this paper aims to measure Chinese households’ indirect carbon footprints, estimate the level of indirect carbon footprint inequalities, and analyze the main drivers of carbon footprint disparities. The main findings are as follows. First, there is widespread inequality in terms of indirect carbon footprints at the individual household level, and the urban-rural disparity has a significant impact on carbon footprint inequalities. Second, inequalities in terms of carbon footprints are higher than those in relation to income and expenditure, with the main source being between-group inequalities. Third, disparities in income, education, living conditions, and asset ownership, as well as urban-rural disparities, are the main factors contributing to carbon footprint differentials. These results imply that the urban rich in China have contributed significantly to emissions growth by means of their daily consumption. With the largest population in the world, the reduction of China’s household carbon footprint has significant implications for global carbon emissions mitigation. China’s future policies should include consideration of low carbon emissions initiatives, such as a progressive carbon tax, that emphasizes the responsibility of the rich

Production sharing, demand spillovers and CO2 emissions : the case of Chinese regions in GVCs

This study adopts the perspective of demand spillovers to provide new insights regarding Chinese domestic-regions\u27 production position in global value chains and their associated CO2 emissions. To this end, we constructed a new type of World Input-Output Database in which China\u27s domestic interregional input-output table for 2007 is endogenously embedded. Then, the pattern of China\u27s regional demand spillovers across both domestic regions and countries are revealed by employing this new database. These results were further connected to endowments theory, which help to make sense of the empirical results. It is found that China\u27s regions locate relatively upstream in GVCs, and had CO2 emissions in net exports, which were entirely predicted by the environmental extended HOV model. Our study points to micro policy instruments to combat climate change, for example, the tax reform for energy inputs that helps to change the production pattern thus has impact on trade pattern and so forth

Industry-wide corporate fraud: The truth behind the Volkswagen scandal

Corporate fraud committed under climate mitigation pressures is becoming more frequently observed in line with the ever increasing environmental standards and relevant regulation enforcements. One example is the Volkswagen Emission Gate Scandal. Using firm-level panel data of major automobile manufacturers from 2000 to 2015, this study empirically identifies the motives behind the corporate deception scandal. We develop a conceptual model summarising the factors affecting decision-making, and the firms' environmentally responsible investments (ERIs) including the truthfulness of related public communications. Our findings identify legal and regulatory pressures, the firm's existing level of ERIs competency and expertise, pressures from emission regulation, market competitors, consumers, owners, or shareholders as the key factors inducing the scandal. The empirical findings show that firms are more likely to experience corporate fraud if their senior managers are paid with substantial variable components that may lead them to engage in riskier business behaviour and to be more short-term focused, thereby supporting the well-established contract theory. To avoid corporate fraud and engage in legitimate business competitiveness, we suggest that firms should focus on technological innovation as well as improving corporate governance and leverage ratios to effectively control and monitor management. In addition, policy makers should be more realistic about practical and commercial limitations in the policy-setting process, and take on a more supporting role in achieving technological innovations and effective corporate governance. In summary, we argue that cleaner production is not only the result of technologically progress and research, but importantly it also involves issues associated with corporate governance and business ethics

The emission reduction effect and economic impact of an energy tax vs. a carbon tax in China : a dynamic CGE model analysis

Chinese government commits to reach its peak carbon emissions before 2030, which requires China to implement new policies. Using a CGE model, this study conducts simulation studies on the functions of an energy tax and a carbon tax and analyzes their effects on macro-economic indices. The Chinese economy is affected at an acceptable level by the two taxes. GDP will lose less than 0.8% with a carbon tax of 100, 50, or 10 RMB/ton CO2 or 5% of the delivery price of an energy tax. Thus, the loss of real disposable personal income is smaller. Compared with implementing a single tax, a combined carbon and energy tax induces more emission reductions with relatively smaller economic costs. With these taxes, the domestic competitiveness of energy intensive industries is improved. Additionally, we found that the sooner such taxes are launched, the smaller the economic costs and the more significant the achieved emission reductions