Pub Date : 2025-03-01DOI: 10.1016/j.asieco.2025.101908
Tao Bu , Daisheng Tang , Zheng Zhang , Chengkai Jiang
It is crucial to investigate the effects of improving rural transportation infrastructure on the health of rural populations. This study establishes a multiple equilibrium model between transportation networks and rural health capital. Based on the data of rural road construction in China and the data of China Health and Nutrition Survey from 2000 to 2015, the OLS and FRD methods with year and individual fixed effects were used to analyze the impact of rural roads on the health status of rural labor force. The study found that rural road connectivity significantly improved laborers’ health, particularly for female, middle-aged and agricultural laborers. The key mechanism of this study is to promote public economic development and individual health investment, health literacy, and time allocation. There is a significant complementary effect between transportation investments and health investments, along with a substitution effect between work and leisure. Our theoretical and empirical findings highlight the importance of last-mile road construction in remote rural areas for improving rural health capital in developing countries.
{"title":"Rural road improvement and individual health in China","authors":"Tao Bu , Daisheng Tang , Zheng Zhang , Chengkai Jiang","doi":"10.1016/j.asieco.2025.101908","DOIUrl":"10.1016/j.asieco.2025.101908","url":null,"abstract":"<div><div>It is crucial to investigate the effects of improving rural transportation infrastructure on the health of rural populations. This study establishes a multiple equilibrium model between transportation networks and rural health capital. Based on the data of rural road construction in China and the data of China Health and Nutrition Survey from 2000 to 2015, the OLS and FRD methods with year and individual fixed effects were used to analyze the impact of rural roads on the health status of rural labor force. The study found that rural road connectivity significantly improved laborers’ health, particularly for female, middle-aged and agricultural laborers. The key mechanism of this study is to promote public economic development and individual health investment, health literacy, and time allocation. There is a significant complementary effect between transportation investments and health investments, along with a substitution effect between work and leisure. Our theoretical and empirical findings highlight the importance of last-mile road construction in remote rural areas for improving rural health capital in developing countries.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101908"},"PeriodicalIF":2.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-28DOI: 10.1016/j.asieco.2025.101910
Jianming Miao , Baomin Dong
Prior research indicates that formal institutions play a crucial role in affecting the quality of exports. However, the impact of informal institutions, particularly social trust, has received insufficient consideration. This study examines the influence of social trust on the quality of export goods. By employing firm-product level data from Chinese enterprises between 2000 and 2013, we illustrate that social trust plays a crucial role in enhancing export quality. The 2SLS regressions validate the anticipated causality, and the result is robust to other quality and trust measures. We delineate three mechanisms: delegation, the introduction of new products, and the acquisition of more debt financing. Our heterogeneity study shows that social trust promotes quality improvement in processing trade firms, foreign-owned firms, low-technological-intensive firms, and firms in eastern China. We also find that social trust and formal institutions work together to improve export quality.
{"title":"Social trust and export quality: Empirical evidence from China","authors":"Jianming Miao , Baomin Dong","doi":"10.1016/j.asieco.2025.101910","DOIUrl":"10.1016/j.asieco.2025.101910","url":null,"abstract":"<div><div>Prior research indicates that formal institutions play a crucial role in affecting the quality of exports. However, the impact of informal institutions, particularly social trust, has received insufficient consideration. This study examines the influence of social trust on the quality of export goods. By employing firm-product level data from Chinese enterprises between 2000 and 2013, we illustrate that social trust plays a crucial role in enhancing export quality. The 2SLS regressions validate the anticipated causality, and the result is robust to other quality and trust measures. We delineate three mechanisms: delegation, the introduction of new products, and the acquisition of more debt financing. Our heterogeneity study shows that social trust promotes quality improvement in processing trade firms, foreign-owned firms, low-technological-intensive firms, and firms in eastern China. We also find that social trust and formal institutions work together to improve export quality.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101910"},"PeriodicalIF":2.9,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549436","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The household carbon emissions (HCEs) account for a large proportion of China’s overall carbon emissions. The Carbon Generalized System of Preferences (CGSP) plays a pivotal role in transforming household lifestyle, aiming at reducing HCEs. Previous research on the CGSP are limited to analysis its public acceptance, with less emphasis on analysis its mitigating effect on HCEs. Therefore, this study explores the mitigating effect of CGSP on HCEs and discover the underlying mechanism of household lifestyle by using the Double Machine Learning (DML) method. We further analyze the heterogeneous effects on different household income levels, urban and rural areas, and consumption categories. Our benchmark regression analysis demonstrates that CGSP effectively mitigates HCEs. After categorizing household lifestyle into household consumption upgrading (HCU) and household sustainable lifestyle (HSL), we find that the HCU negatively affects the relationship between CGSP and HCEs, whereas HSL enhance the effectiveness of reducing HCEs. The heterogeneity analysis results reveal that CGSP is more effective for households at the lowest, higher and highest income levels and has a stronger impact on carbon emissions for urban households compared to their rural counterparts. Additionally, the CGSP has heterogeneous mitigation effects across consumption categories, with significant impacts on food, residential utilities, facilities, transport and communication, recreation-education-culture, and other services. These findings provide quantitative insights into the implementation of CGSP in China.
{"title":"Does household lifestyle impact the decarbonization effect of carbon generalized system of preferences? Evidence from household survey in China","authors":"Xiaoying Su , Donglan Zha , Chaoqun Zhang , Kuokuo Zhao","doi":"10.1016/j.asieco.2025.101907","DOIUrl":"10.1016/j.asieco.2025.101907","url":null,"abstract":"<div><div>The household carbon emissions (HCEs) account for a large proportion of China’s overall carbon emissions. The Carbon Generalized System of Preferences (CGSP) plays a pivotal role in transforming household lifestyle, aiming at reducing HCEs. Previous research on the CGSP are limited to analysis its public acceptance, with less emphasis on analysis its mitigating effect on HCEs. Therefore, this study explores the mitigating effect of CGSP on HCEs and discover the underlying mechanism of household lifestyle by using the Double Machine Learning (DML) method. We further analyze the heterogeneous effects on different household income levels, urban and rural areas, and consumption categories. Our benchmark regression analysis demonstrates that CGSP effectively mitigates HCEs. After categorizing household lifestyle into household consumption upgrading (HCU) and household sustainable lifestyle (HSL), we find that the HCU negatively affects the relationship between CGSP and HCEs, whereas HSL enhance the effectiveness of reducing HCEs. The heterogeneity analysis results reveal that CGSP is more effective for households at the lowest, higher and highest income levels and has a stronger impact on carbon emissions for urban households compared to their rural counterparts. Additionally, the CGSP has heterogeneous mitigation effects across consumption categories, with significant impacts on food, residential utilities, facilities, transport and communication, recreation-education-culture, and other services. These findings provide quantitative insights into the implementation of CGSP in China.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101907"},"PeriodicalIF":2.9,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143550269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-22DOI: 10.1016/j.asieco.2025.101902
Xuewei Su , Kaike Wang
High-quality economic development necessitates considering the environmental and economic advantages of green and low-carbon growth. Unlike “GDP” promotion tournaments, in non-economic sector tournaments (NESTs), the central government selects cities from various perspectives. It assesses officials’ performance in social civilization and environmental management. National Civilized City Selection (NCCS) awards honorary titles and enhances the brand of winning cities through competition and recognition, avoiding uneven economic growth caused by excessive attention to economic benefits. This study examines NCCS as a key example of NEST and uses a multi-period difference-in-differences (DID) model to explore how effective NESTs are at reducing carbon dioxide (CO2) emissions. Results show that NCCS significantly lowers CO2 intensity while promoting economic and environmental benefits. Mechanism analysis indicates that NCCS achieves this by encouraging greener production, optimizing energy consumption, and strengthening environmental regulations. Moreover, NCCS improves social welfare in winning cities. Cities with more substantial political incentives and higher public environmental literacy exhibit better governance outcomes. Additionally, the NEST framework is particularly effective in reducing CO2 intensity in large, non-resource-based cities and regions with varying development levels.
{"title":"Carbon dioxide emission reduction effects of non-economic sector tournaments: Evidence from the national civilized city selection","authors":"Xuewei Su , Kaike Wang","doi":"10.1016/j.asieco.2025.101902","DOIUrl":"10.1016/j.asieco.2025.101902","url":null,"abstract":"<div><div>High-quality economic development necessitates considering the environmental and economic advantages of green and low-carbon growth. Unlike “GDP” promotion tournaments, in non-economic sector tournaments (NESTs), the central government selects cities from various perspectives. It assesses officials’ performance in social civilization and environmental management. National Civilized City Selection (NCCS) awards honorary titles and enhances the brand of winning cities through competition and recognition, avoiding uneven economic growth caused by excessive attention to economic benefits. This study examines NCCS as a key example of NEST and uses a multi-period difference-in-differences (DID) model to explore how effective NESTs are at reducing carbon dioxide (CO<sub>2</sub>) emissions. Results show that NCCS significantly lowers CO<sub>2</sub> intensity while promoting economic and environmental benefits. Mechanism analysis indicates that NCCS achieves this by encouraging greener production, optimizing energy consumption, and strengthening environmental regulations. Moreover, NCCS improves social welfare in winning cities. Cities with more substantial political incentives and higher public environmental literacy exhibit better governance outcomes. Additionally, the NEST framework is particularly effective in reducing CO<sub>2</sub> intensity in large, non-resource-based cities and regions with varying development levels.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101902"},"PeriodicalIF":2.9,"publicationDate":"2025-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143521027","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-22DOI: 10.1016/j.asieco.2025.101905
Japan Huynh
This study examines the effects of banking uncertainty on firms' financial reporting quality. Using data obtained from commercial banks and non-financial listed firms in the bank-based market of Vietnam during 2007–2022, we find that banking uncertainty is associated with higher corporate earnings opacity. We present evidence demonstrating the importance of financing constraints in shaping the relationship between banking uncertainty and firms' earnings management. Further, we find that the impact of banking uncertainty on corporate earnings manipulations is less pronounced for firms with solid bank-firm relationships, firms having improved financial strength and superior performance, and firms listed on the Ho Chi Minh stock exchange. Finally, we detect that the uncertainty effect on firm opacity is more potent during macroeconomic shocks. Overall, our findings caution stakeholders to maintain a degree of skepticism regarding the earnings disclosures of specific firms during periods of uncertainty in a bank-dominated market.
{"title":"Impact of banking uncertainty on firm opacity: Evidence from Vietnam","authors":"Japan Huynh","doi":"10.1016/j.asieco.2025.101905","DOIUrl":"10.1016/j.asieco.2025.101905","url":null,"abstract":"<div><div>This study examines the effects of banking uncertainty on firms' financial reporting quality. Using data obtained from commercial banks and non-financial listed firms in the bank-based market of Vietnam during 2007–2022, we find that banking uncertainty is associated with higher corporate earnings opacity. We present evidence demonstrating the importance of financing constraints in shaping the relationship between banking uncertainty and firms' earnings management. Further, we find that the impact of banking uncertainty on corporate earnings manipulations is less pronounced for firms with solid bank-firm relationships, firms having improved financial strength and superior performance, and firms listed on the Ho Chi Minh stock exchange. Finally, we detect that the uncertainty effect on firm opacity is more potent during macroeconomic shocks. Overall, our findings caution stakeholders to maintain a degree of skepticism regarding the earnings disclosures of specific firms during periods of uncertainty in a bank-dominated market.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101905"},"PeriodicalIF":2.9,"publicationDate":"2025-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143521029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-22DOI: 10.1016/j.asieco.2025.101903
Kai Liu , Jiayi Chen , Yuan Tian , Baobo Qu , Badar Alam Iqbal
The mechanism through which external demand influences firm innovation has garnered increasing attention. However, the impact of digital technology on this relationship, particularly on the demand side within the context of digitalization, remains underexplored. Utilizing data from the Chinese Industrial Enterprise Database, a patent database, a customs database, and the CEPII-BACI database from 2000 to 2013, this paper investigates how external demand affects firm innovation through digital empowerment. The findings indicate: (1) Destination import demand has an inhibitory effect on firm innovation. (2) Heterogeneity analysis reveals that external demand positively impacts firm innovation when the primary export destination is a high-income country or the firm operates within a high-technology industry. (3) External demand enhances firm innovation capabilities through the information-sharing and technology-upgrading effects of digital empowerment. (4) Mechanism testing shows that international external demand influences firm innovation through the scale effect and the competition effect, with the competition effect generally having a negative impact on innovation decision-making as external demand expands. This research contributes to understanding the impact of external demand on the innovation of Chinese export firms, examining how digital empowerment mediates this relationship, and providing a theoretical foundation for leveraging digital technology to promote firm innovation.
{"title":"Import demand, digital empowerment and firm innovation","authors":"Kai Liu , Jiayi Chen , Yuan Tian , Baobo Qu , Badar Alam Iqbal","doi":"10.1016/j.asieco.2025.101903","DOIUrl":"10.1016/j.asieco.2025.101903","url":null,"abstract":"<div><div>The mechanism through which external demand influences firm innovation has garnered increasing attention. However, the impact of digital technology on this relationship, particularly on the demand side within the context of digitalization, remains underexplored. Utilizing data from the Chinese Industrial Enterprise Database, a patent database, a customs database, and the CEPII-BACI database from 2000 to 2013, this paper investigates how external demand affects firm innovation through digital empowerment. The findings indicate: (1) Destination import demand has an inhibitory effect on firm innovation. (2) Heterogeneity analysis reveals that external demand positively impacts firm innovation when the primary export destination is a high-income country or the firm operates within a high-technology industry. (3) External demand enhances firm innovation capabilities through the information-sharing and technology-upgrading effects of digital empowerment. (4) Mechanism testing shows that international external demand influences firm innovation through the scale effect and the competition effect, with the competition effect generally having a negative impact on innovation decision-making as external demand expands. This research contributes to understanding the impact of external demand on the innovation of Chinese export firms, examining how digital empowerment mediates this relationship, and providing a theoretical foundation for leveraging digital technology to promote firm innovation.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101903"},"PeriodicalIF":2.9,"publicationDate":"2025-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549440","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-22DOI: 10.1016/j.asieco.2025.101894
Chunfeng Zhang, Xiaoyan Lei
Institutional care and home-based care represent two fundamental components of elderly care systems across Asian countries. This study leverages the exogenous shock induced by the Long-Term Care Insurance (LTCI) pilot program in China to comparatively assess the efficacy of institutional versus home-based care. The analysis reveals that, relative to home-based care, institutional care more effectively addresses the caregiving needs of the elderly and enhances their access to medical services. However, it also entails higher caregiving costs and may contribute to negative outcomes, such as accelerated cognitive decline, deterioration in instrumental activities of daily living (IADL), and impaired vision, although it does not appear to increase short-term mortality risk. Further investigation suggests that these adverse effects may be linked to limited social engagement and reduced daily activities within institutional settings. These results underscore the critical need for care systems to address not only the basic care and medical requirements of the elderly but also their higher-level needs to improve their overall well-being.
{"title":"Home or institution: A comparative analysis of elderly care efficacy in China","authors":"Chunfeng Zhang, Xiaoyan Lei","doi":"10.1016/j.asieco.2025.101894","DOIUrl":"10.1016/j.asieco.2025.101894","url":null,"abstract":"<div><div>Institutional care and home-based care represent two fundamental components of elderly care systems across Asian countries. This study leverages the exogenous shock induced by the Long-Term Care Insurance (LTCI) pilot program in China to comparatively assess the efficacy of institutional versus home-based care. The analysis reveals that, relative to home-based care, institutional care more effectively addresses the caregiving needs of the elderly and enhances their access to medical services. However, it also entails higher caregiving costs and may contribute to negative outcomes, such as accelerated cognitive decline, deterioration in instrumental activities of daily living (IADL), and impaired vision, although it does not appear to increase short-term mortality risk. Further investigation suggests that these adverse effects may be linked to limited social engagement and reduced daily activities within institutional settings. These results underscore the critical need for care systems to address not only the basic care and medical requirements of the elderly but also their higher-level needs to improve their overall well-being.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101894"},"PeriodicalIF":2.9,"publicationDate":"2025-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-20DOI: 10.1016/j.asieco.2025.101901
Shuzhong Ma , Peng Wu , Chao Fang
Increased robot adoption is expected to affect existing global production organizations and prompt reshoring. We analyze the impact of robot adoption on Chinese firms’ outward foreign direct investment (OFDI) to ascertain trends in industry migration. Robust difference-in-differences (DID) estimates from the three datasets show a positive effect of robot adoption on the different motives for OFDI. This impact was driven by production expansion, with robot adoption raising firms’ demand for factors, increasing productivity, and expanding exports. This positive effect is stronger for knowledge-seeking and export-seeking OFDI, particularly for upstream firms. These findings suggest that reshoring may not occur, as predicted in the literature.
{"title":"The impact of robot adoption on firm’s OFDI: Evidence from China","authors":"Shuzhong Ma , Peng Wu , Chao Fang","doi":"10.1016/j.asieco.2025.101901","DOIUrl":"10.1016/j.asieco.2025.101901","url":null,"abstract":"<div><div>Increased robot adoption is expected to affect existing global production organizations and prompt reshoring. We analyze the impact of robot adoption on Chinese firms’ outward foreign direct investment (OFDI) to ascertain trends in industry migration. Robust difference-in-differences (DID) estimates from the three datasets show a positive effect of robot adoption on the different motives for OFDI. This impact was driven by production expansion, with robot adoption raising firms’ demand for factors, increasing productivity, and expanding exports. This positive effect is stronger for knowledge-seeking and export-seeking OFDI, particularly for upstream firms. These findings suggest that reshoring may not occur, as predicted in the literature.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"97 ","pages":"Article 101901"},"PeriodicalIF":2.9,"publicationDate":"2025-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143509078","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates the impact of interest rate liberalization (IRL) on the procyclicality of the bank liquidity buffer based on data of 377 commercial banks in China from 2007 to 2019. The results show that the liquidity buffer is procyclical. The advancement of IRL diminishes the bank liquidity buffer and exacerbates its procyclicality. The expansion of the fluctuation level of interest rate, one dimension of IRL, is the dominant driving factor. Furthermore, this paper finds that the effect of IRL on the procyclicality of the liquidity buffer is amplified in non-primary, joint-stock, city and less-profitable banks. Additionally, the IRL has a higher negative impact on the liquidity buffer of banks that engage in greater risk-taking.
{"title":"Interest rate liberalization and the procyclicality of the bank liquidity buffer: Evidence from China","authors":"Hai Jiang , Yunfan Zhu , Chao Yuan , Xiaolin Zhang","doi":"10.1016/j.asieco.2025.101904","DOIUrl":"10.1016/j.asieco.2025.101904","url":null,"abstract":"<div><div>This paper investigates the impact of interest rate liberalization (IRL) on the procyclicality of the bank liquidity buffer based on data of 377 commercial banks in China from 2007 to 2019. The results show that the liquidity buffer is procyclical. The advancement of IRL diminishes the bank liquidity buffer and exacerbates its procyclicality. The expansion of the fluctuation level of interest rate, one dimension of IRL, is the dominant driving factor. Furthermore, this paper finds that the effect of IRL on the procyclicality of the liquidity buffer is amplified in non-primary, joint-stock, city and less-profitable banks. Additionally, the IRL has a higher negative impact on the liquidity buffer of banks that engage in greater risk-taking.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"98 ","pages":"Article 101904"},"PeriodicalIF":2.9,"publicationDate":"2025-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143521028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-16DOI: 10.1016/j.asieco.2025.101899
Xiaojuan Hou , Ruojun Xiang
This paper aims to assess how extreme heat affects the energy efficiency of enterprises. By using the samples of industrial enterprises in China from 2001 to 2009, our findings indicate that with each unit rise in standardized temperature, the energy efficiency of enterprises improves by 0.2 %. This scenario can reduce the energy cost of an enterprise by 52,434 yuan. Our estimates provide robust evidence even after addressing endogeneity issues such as firm relocation. Furthermore, we find that in regions with higher levels of economic development, firms facing greater financing constraints, low-energy-consuming firms, and large-scale enterprises experience a positive impact of extreme heat on energy efficiency. Mechanism analysis demonstrates that extreme heats can promote capital renewal, production process innovation, and energy structure restructuring, which can improve energy efficiency. In further analysis, we assess the environmental benefits brought about by the energy efficiency improvement caused by extreme heats. We also explore the factors that affecting the relationship between extreme heats and energy efficiency, with local environmental regulations, fiscal subsidies, and financial development being effective catalysts. These findings supplement the insufficient literature on the response behavior of enterprises facing extreme heats.
{"title":"Exploring the influence of extreme heat on corporate energy efficiency","authors":"Xiaojuan Hou , Ruojun Xiang","doi":"10.1016/j.asieco.2025.101899","DOIUrl":"10.1016/j.asieco.2025.101899","url":null,"abstract":"<div><div>This paper aims to assess how extreme heat affects the energy efficiency of enterprises. By using the samples of industrial enterprises in China from 2001 to 2009, our findings indicate that with each unit rise in standardized temperature, the energy efficiency of enterprises improves by 0.2 %. This scenario can reduce the energy cost of an enterprise by 52,434 yuan. Our estimates provide robust evidence even after addressing endogeneity issues such as firm relocation. Furthermore, we find that in regions with higher levels of economic development, firms facing greater financing constraints, low-energy-consuming firms, and large-scale enterprises experience a positive impact of extreme heat on energy efficiency. Mechanism analysis demonstrates that extreme heats can promote capital renewal, production process innovation, and energy structure restructuring, which can improve energy efficiency. In further analysis, we assess the environmental benefits brought about by the energy efficiency improvement caused by extreme heats. We also explore the factors that affecting the relationship between extreme heats and energy efficiency, with local environmental regulations, fiscal subsidies, and financial development being effective catalysts. These findings supplement the insufficient literature on the response behavior of enterprises facing extreme heats.</div></div>","PeriodicalId":47583,"journal":{"name":"Journal of Asian Economics","volume":"97 ","pages":"Article 101899"},"PeriodicalIF":2.9,"publicationDate":"2025-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143445434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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