Pub Date : 2024-10-13DOI: 10.1016/j.eap.2024.10.009
Ruqi Wang , Pei Xu , Honggui Gao
Insufficient local environmental enforcement has become a pivotal economic and political concern in China. In 2017, the Chinese central government introduced the Air Pollution Hot-Spot Grid (APHG) monitoring program. However, little is known about the consequences. This study investigates in detail how this monitoring program affects city-level air pollution by applying the difference-in-differences method. This program was responsible for a notable decrease in air pollution at the city level. This decrease was mostly the result of stronger local environmental governance, advances in green innovation, and an upgraded industrial structure. Additionally, an examination of heterogeneous treatment effects across different cities revealed that the most substantial effects were observed in large, non-resource-based, and eastern cities. Additional analysis reveals the presence of a spillover effect, whereby the adoption of this program in one city helps reduce air pollution in nearby cities. These results highlight the significance of refined air pollution monitoring for addressing imperfect local environmental enforcement.
{"title":"Rectifying local governments’ strategic environmental enforcement: Can refined air pollution monitoring enhance local air quality in China?","authors":"Ruqi Wang , Pei Xu , Honggui Gao","doi":"10.1016/j.eap.2024.10.009","DOIUrl":"10.1016/j.eap.2024.10.009","url":null,"abstract":"<div><div>Insufficient local environmental enforcement has become a pivotal economic and political concern in China. In 2017, the Chinese central government introduced the Air Pollution Hot-Spot Grid (APHG) monitoring program. However, little is known about the consequences. This study investigates in detail how this monitoring program affects city-level air pollution by applying the difference-in-differences method. This program was responsible for a notable decrease in air pollution at the city level. This decrease was mostly the result of stronger local environmental governance, advances in green innovation, and an upgraded industrial structure. Additionally, an examination of heterogeneous treatment effects across different cities revealed that the most substantial effects were observed in large, non-resource-based, and eastern cities. Additional analysis reveals the presence of a spillover effect, whereby the adoption of this program in one city helps reduce air pollution in nearby cities. These results highlight the significance of refined air pollution monitoring for addressing imperfect local environmental enforcement.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 978-995"},"PeriodicalIF":7.9,"publicationDate":"2024-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142442486","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-12DOI: 10.1016/j.eap.2024.10.022
Xing Gao , Xinjie Lai , Xuan Tang , Yue Li
The low-carbon city pilot (LCCP) policy, as an important measure for China to achieve its "dual carbon" goals, has attracted widespread attention regarding its implementation effects. However, no studies have yet focused on the impact of the LCCP policy on corporate environmental awareness. This study, based on data from Chinese A-share listed companies from 2007 to 2020, employs a triple difference model to evaluate the impact of the LCCP policy on corporate environmental awareness, filling the aforementioned gap in the literature. The results indicate that the LCCP policy can significantly enhance corporate environmental awareness, particularly in non-state-owned enterprises, enterprises in the growth stage, and those located in the eastern regions. The LCCP policy will compel corporations to enhance their environmental awareness by increasing the costs of environmental penalty and environmental governance. However, the analysis of economic consequences reveals that although corporate environmental awareness has improved, it has not directly translated into significant economic benefits or substantial environmental benefits. This may be indicative of a scenario where, in the short term, the cost effect of the LCCP policy outweighs the compensation effect. Nevertheless, the improvement in the quality of information disclosure can significantly mitigate these adverse economic consequences. This research not only enriches the academic outcomes related to environmental regulatory policies but also contributes to ensuring the effective achievement of green, low-carbon objective and the sustainable development of the economy and society.
{"title":"Does environmental regulation affect corporate environmental awareness? A quasi-natural experiment based on low-carbon city pilot policy","authors":"Xing Gao , Xinjie Lai , Xuan Tang , Yue Li","doi":"10.1016/j.eap.2024.10.022","DOIUrl":"10.1016/j.eap.2024.10.022","url":null,"abstract":"<div><div>The low-carbon city pilot (LCCP) policy, as an important measure for China to achieve its \"dual carbon\" goals, has attracted widespread attention regarding its implementation effects. However, no studies have yet focused on the impact of the LCCP policy on corporate environmental awareness. This study, based on data from Chinese A-share listed companies from 2007 to 2020, employs a triple difference model to evaluate the impact of the LCCP policy on corporate environmental awareness, filling the aforementioned gap in the literature. The results indicate that the LCCP policy can significantly enhance corporate environmental awareness, particularly in non-state-owned enterprises, enterprises in the growth stage, and those located in the eastern regions. The LCCP policy will compel corporations to enhance their environmental awareness by increasing the costs of environmental penalty and environmental governance. However, the analysis of economic consequences reveals that although corporate environmental awareness has improved, it has not directly translated into significant economic benefits or substantial environmental benefits. This may be indicative of a scenario where, in the short term, the cost effect of the LCCP policy outweighs the compensation effect. Nevertheless, the improvement in the quality of information disclosure can significantly mitigate these adverse economic consequences. This research not only enriches the academic outcomes related to environmental regulatory policies but also contributes to ensuring the effective achievement of green, low-carbon objective and the sustainable development of the economy and society.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1164-1184"},"PeriodicalIF":7.9,"publicationDate":"2024-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142537306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-12DOI: 10.1016/j.eap.2024.10.019
Fu Chen , Fangfang Li , Jie Xu , Yongtai Sun , Fangyuan Li
With the expansion of green finance and the digital economy, the discussion on the evolution of green credit business and the digitalization of commercial banks have grown in prominence. However, limited research has been done on how different degrees of digital transformation in commercial banks—the main issuers—affect the way of green credit efficiency. To fill this gap, based on data from 114 Chinese commercial banks between 2010 and 2021, this paper explores the impact of digitalization on the green credit efficiency through the integration of several methodologies. The paper indicates that enhancing the digitalization, business digitization, and management digitization of commercial banks can greatly enhance the effectiveness of green credit businesses, but the impact of strategic digitization is not significant. Further analysis reveals that digitization facilitates the expansion of overall bank assets, thereby bolstering the green credit business. It also investigates the characteristics of commercial banks and the geographical distribution of their headquarters, indicating a diminished promotional impact for urban and rural banks, as well as banks in the central areas. Finally, this study contends that commercial banks ought to leverage digital resources extensively to facilitate digital transformation and bolster the advancement of green credit operations. It is also recommended that the government should implement preferential policies for regions and banks exhibiting slower developmental progress.
{"title":"Nexus between green credit efficiency and strategic, business and management digital transformation–based on 114 commercial banks in China","authors":"Fu Chen , Fangfang Li , Jie Xu , Yongtai Sun , Fangyuan Li","doi":"10.1016/j.eap.2024.10.019","DOIUrl":"10.1016/j.eap.2024.10.019","url":null,"abstract":"<div><div>With the expansion of green finance and the digital economy, the discussion on the evolution of green credit business and the digitalization of commercial banks have grown in prominence. However, limited research has been done on how different degrees of digital transformation in commercial banks—the main issuers—affect the way of green credit efficiency. To fill this gap, based on data from 114 Chinese commercial banks between 2010 and 2021, this paper explores the impact of digitalization on the green credit efficiency through the integration of several methodologies. The paper indicates that enhancing the digitalization, business digitization, and management digitization of commercial banks can greatly enhance the effectiveness of green credit businesses, but the impact of strategic digitization is not significant. Further analysis reveals that digitization facilitates the expansion of overall bank assets, thereby bolstering the green credit business. It also investigates the characteristics of commercial banks and the geographical distribution of their headquarters, indicating a diminished promotional impact for urban and rural banks, as well as banks in the central areas. Finally, this study contends that commercial banks ought to leverage digital resources extensively to facilitate digital transformation and bolster the advancement of green credit operations. It is also recommended that the government should implement preferential policies for regions and banks exhibiting slower developmental progress.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1242-1257"},"PeriodicalIF":7.9,"publicationDate":"2024-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142537368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-12DOI: 10.1016/j.eap.2024.10.018
Tuolei Wu , Na Yan , Jingxian Wang , Jieping Chen
This paper provides new insights into the industry spillover on labor productivity by discussing the spillover effects of robot application among industries in three spillover directions: horizontal, forward, and backward spillover. In addition, this paper measures the three spillovers with the weight matrices from the year 2012 input-output table by the Chinese National Bureau of Statistics. Using a spatial econometric model and 2000–2010 data on China's secondary industry, this paper tests three hypotheses relating to the direct effect and the spillover effects of robot applications. The main results show that the robot application of one industry can improve labor productivity significantly. Moreover, all three kinds of spillover have significant positive effects on the labor productivity of a focal industry. Among them, the forward spillover exerts the greatest impact on labor productivity. The heterogeneity effects exist due to the industry's factor intensity and technological structure etc. The findings of this study could provide several important implications for the development of a given industry and the industry chain of a country as well.
{"title":"Industry spillover effects of robot applications on labor productivity: Evidence from China","authors":"Tuolei Wu , Na Yan , Jingxian Wang , Jieping Chen","doi":"10.1016/j.eap.2024.10.018","DOIUrl":"10.1016/j.eap.2024.10.018","url":null,"abstract":"<div><div>This paper provides new insights into the industry spillover on labor productivity by discussing the spillover effects of robot application among industries in three spillover directions: horizontal, forward, and backward spillover. In addition, this paper measures the three spillovers with the weight matrices from the year 2012 input-output table by the Chinese National Bureau of Statistics. Using a spatial econometric model and 2000–2010 data on China's secondary industry, this paper tests three hypotheses relating to the direct effect and the spillover effects of robot applications. The main results show that the robot application of one industry can improve labor productivity significantly. Moreover, all three kinds of spillover have significant positive effects on the labor productivity of a focal industry. Among them, the forward spillover exerts the greatest impact on labor productivity. The heterogeneity effects exist due to the industry's factor intensity and technological structure etc. The findings of this study could provide several important implications for the development of a given industry and the industry chain of a country as well.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1272-1286"},"PeriodicalIF":7.9,"publicationDate":"2024-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142537299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-11DOI: 10.1016/j.eap.2024.10.008
Yan Sheng , Shuai Wang , Yanan Wang
This study investigates the effect of a green finance policy on the corporate social responsibility (CSR) activities of firms in heavily polluting industries. Based on the 2017 policy of the People's Bank of China (PBC), which incorporates green finance into its macroprudential assessment system, we employ the difference-in-differences method to show that firms in heavily polluting industries have significantly improved their CSR performance after the implementation of the PBC's green finance policy. In response to the negative effect of the PBC's policy on their financial position, affected firms strategically engage in CSR activities in the hope that appearing socially responsible will help them recover from their adverse position. Furthermore, firms in heavily polluting industries that enhance their CSR performance after the PBC's policy have benefited from reduced bank credit transaction costs and have obtained more bank loans. The improvement in CSR performance is mainly concentrated in firms that are non-state-owned, small in size, highly dependent on external financing, and receiving more media attention. Overall, this study reveals a social consequence of the PBC's green finance policy on the CSR performance.
{"title":"Doing good in times of need: Green finance policy and strategic corporate social responsibility","authors":"Yan Sheng , Shuai Wang , Yanan Wang","doi":"10.1016/j.eap.2024.10.008","DOIUrl":"10.1016/j.eap.2024.10.008","url":null,"abstract":"<div><div>This study investigates the effect of a green finance policy on the corporate social responsibility (CSR) activities of firms in heavily polluting industries. Based on the 2017 policy of the People's Bank of China (PBC), which incorporates green finance into its macroprudential assessment system, we employ the difference-in-differences method to show that firms in heavily polluting industries have significantly improved their CSR performance after the implementation of the PBC's green finance policy. In response to the negative effect of the PBC's policy on their financial position, affected firms strategically engage in CSR activities in the hope that appearing socially responsible will help them recover from their adverse position. Furthermore, firms in heavily polluting industries that enhance their CSR performance after the PBC's policy have benefited from reduced bank credit transaction costs and have obtained more bank loans. The improvement in CSR performance is mainly concentrated in firms that are non-state-owned, small in size, highly dependent on external financing, and receiving more media attention. Overall, this study reveals a social consequence of the PBC's green finance policy on the CSR performance.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":""},"PeriodicalIF":7.9,"publicationDate":"2024-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142445445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-10DOI: 10.1016/j.eap.2024.10.006
Song Nie , Gang Zeng , Xu Zhang , Qiaozhe Guo
The accumulated local government debt will change government fiscal behavior, which will further impact regional environment performance to a certain extent. However, the literature on how local government debt pressure (LGDP) affect green transition is scarce. By measuring the green transition by green total factor productivity (GTFP), we analyze the effect of LGDP on GTFP. We find that LGDP significantly reduces the GTFP. The negative effect acts through reducing green innovation and loosing environmental regulation. In addition, the negative impact will be more pronounced in cities with weak governance, development, and environmental protection efforts. Finally, enhancing marketization, lowering GDP growth target, and reducing tax burdens can alleviate the adverse effect of LGDP on GTFP. The conclusions of this study provide theoretical support for appropriate government debt governance and have important practical significance for green sustainable development in developing countries.
累积的地方政府债务将改变政府的财政行为，并在一定程度上进一步影响区域环境绩效。然而，关于地方政府债务压力（LGDP）如何影响绿色转型的文献却很少。通过用绿色全要素生产率（GTFP）来衡量绿色转型，我们分析了 LGDP 对 GTFP 的影响。我们发现，地方政府债务压力大大降低了 GTFP。这种负面影响是通过减少绿色创新和放松环境监管产生的。此外，在治理、发展和环境保护工作薄弱的城市，负面影响会更加明显。最后，加强市场化、降低 GDP 增长目标和减轻税收负担可以减轻地方政府发展计划对 GTFP 的不利影响。本研究的结论为适当的政府债务治理提供了理论支持，对发展中国家的绿色可持续发展具有重要的现实意义。
{"title":"Does local government debt pressure hamper green transition? Evidence from China","authors":"Song Nie , Gang Zeng , Xu Zhang , Qiaozhe Guo","doi":"10.1016/j.eap.2024.10.006","DOIUrl":"10.1016/j.eap.2024.10.006","url":null,"abstract":"<div><div>The accumulated local government debt will change government fiscal behavior, which will further impact regional environment performance to a certain extent. However, the literature on how local government debt pressure (LGDP) affect green transition is scarce. By measuring the green transition by green total factor productivity (GTFP), we analyze the effect of LGDP on GTFP. We find that LGDP significantly reduces the GTFP. The negative effect acts through reducing green innovation and loosing environmental regulation. In addition, the negative impact will be more pronounced in cities with weak governance, development, and environmental protection efforts. Finally, enhancing marketization, lowering GDP growth target, and reducing tax burdens can alleviate the adverse effect of LGDP on GTFP. The conclusions of this study provide theoretical support for appropriate government debt governance and have important practical significance for green sustainable development in developing countries.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1185-1201"},"PeriodicalIF":7.9,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142537355","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-10DOI: 10.1016/j.eap.2024.10.005
Yaobin Liu , Weifeng Deng , Huwei Wen , Shuoshuo Li
Green technology innovation (GTI) is the key to overcoming the dilemma between economic development and environmental protection, requiring integrates environmental regulatory policies and innovation incentive policies to counteract its double externalities. This study examined the effects of the dual pilot policy (DPP) of low-carbon city pilot policy (LCCPP) and innovative city pilot policy (ICPP) on GTI based on panel data from 281 prefecture-level cities in China spanning 2007 to 2022. We found that DPP significantly improves both substantive green technology innovation (SUGTI) and strategic green technology innovations (STGTI), with a more pronounced effect identified on STGTI. LCCPP and ICPP demonstrate a policy-synergistic effect and a more sustainable and powerful influence compared to the single pilot policy of LCCPP or ICPP. Mechanism analysis reveals that DPP corrects the positive externalities of innovative knowledge by improving innovation subsidies, independent innovation capabilities, and innovation efficiency. DPP also corrects the negative externalities of environmental pollution by promoting environmental services, industrial transformation, and cleaner production. This effect of DPP on GTI appears insignificant in western cities, cities with low industry agglomeration, cities with abundant resource, and cities with low environmental awareness. Moreover, DPP engenders a demonstration effect for neighboring cities in their GTI. Our findings reveal that intensifying the policy synergy effects of LCCPP and ICPP can more efficiently and sustainably promote SUGTI and STGTI. To maximize the synergistic effects of LCCPP and ICPP, it is essential to strength the green effect of LCCPP and the innovative effect of ICPP, integrating various policy tools to complement and reinforce each other.
{"title":"Promoting green technology innovation through policy synergy: Evidence from the dual pilot policy of low-carbon city and innovative city","authors":"Yaobin Liu , Weifeng Deng , Huwei Wen , Shuoshuo Li","doi":"10.1016/j.eap.2024.10.005","DOIUrl":"10.1016/j.eap.2024.10.005","url":null,"abstract":"<div><div>Green technology innovation (GTI) is the key to overcoming the dilemma between economic development and environmental protection, requiring integrates environmental regulatory policies and innovation incentive policies to counteract its double externalities. This study examined the effects of the dual pilot policy (DPP) of low-carbon city pilot policy (LCCPP) and innovative city pilot policy (ICPP) on GTI based on panel data from 281 prefecture-level cities in China spanning 2007 to 2022. We found that DPP significantly improves both substantive green technology innovation (SUGTI) and strategic green technology innovations (STGTI), with a more pronounced effect identified on STGTI. LCCPP and ICPP demonstrate a policy-synergistic effect and a more sustainable and powerful influence compared to the single pilot policy of LCCPP or ICPP. Mechanism analysis reveals that DPP corrects the positive externalities of innovative knowledge by improving innovation subsidies, independent innovation capabilities, and innovation efficiency. DPP also corrects the negative externalities of environmental pollution by promoting environmental services, industrial transformation, and cleaner production. This effect of DPP on GTI appears insignificant in western cities, cities with low industry agglomeration, cities with abundant resource, and cities with low environmental awareness. Moreover, DPP engenders a demonstration effect for neighboring cities in their GTI. Our findings reveal that intensifying the policy synergy effects of LCCPP and ICPP can more efficiently and sustainably promote SUGTI and STGTI. To maximize the synergistic effects of LCCPP and ICPP, it is essential to strength the green effect of LCCPP and the innovative effect of ICPP, integrating various policy tools to complement and reinforce each other.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 957-977"},"PeriodicalIF":7.9,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142431937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-09DOI: 10.1016/j.eap.2024.10.002
Li-Hui Wang , Fu-An Li
This paper selects Chinese macroeconomic data from the first quarter of 2009 to the first quarter of 2020 and employs a New Keynesian dynamic stochastic general equilibrium model that incorporates the financial accelerator mechanism, price stickiness, and invisible government guarantees. The regulatory effects of different combinations of monetary policy instruments are compared from five perspectives: the shock effect of monetary policy, the magnitude of economic volatility of non-monetary policy shocks, the Central Bank loss function, the gap in the distribution of household income, and the heterogeneous firm external financing premium. Our findings indicate that the regulatory effects of the aggregate price-based and structural quantity-based monetary policy instrument combination are optimal, a conclusion that is further supported by the robustness test. It is therefore recommended that the Central Bank consider the potential benefits of a combined approach to aggregate and structural monetary policy instruments, with a view to enhancing credit availability for the real economy. This paper represents a significant contribution to the field, as it is the first to explicitly propose four distinct monetary policy instrument combinations, thereby overcoming the limitations of previous studies that have focused on a single instrument or a narrow range of instruments. The paper also contributes to the theoretical understanding of monetary policy instruments.
{"title":"Regulatory Effects of the Combinations of Aggregate and Structural Monetary Policy Instruments: an application of New Keynesian DSGE model to China","authors":"Li-Hui Wang , Fu-An Li","doi":"10.1016/j.eap.2024.10.002","DOIUrl":"10.1016/j.eap.2024.10.002","url":null,"abstract":"<div><div>This paper selects Chinese macroeconomic data from the first quarter of 2009 to the first quarter of 2020 and employs a New Keynesian dynamic stochastic general equilibrium model that incorporates the financial accelerator mechanism, price stickiness, and invisible government guarantees. The regulatory effects of different combinations of monetary policy instruments are compared from five perspectives: the shock effect of monetary policy, the magnitude of economic volatility of non-monetary policy shocks, the Central Bank loss function, the gap in the distribution of household income, and the heterogeneous firm external financing premium. Our findings indicate that the regulatory effects of the aggregate price-based and structural quantity-based monetary policy instrument combination are optimal, a conclusion that is further supported by the robustness test. It is therefore recommended that the Central Bank consider the potential benefits of a combined approach to aggregate and structural monetary policy instruments, with a view to enhancing credit availability for the real economy. This paper represents a significant contribution to the field, as it is the first to explicitly propose four distinct monetary policy instrument combinations, thereby overcoming the limitations of previous studies that have focused on a single instrument or a narrow range of instruments. The paper also contributes to the theoretical understanding of monetary policy instruments.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1120-1143"},"PeriodicalIF":7.9,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142537304","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-05DOI: 10.1016/j.eap.2024.09.030
Haiyan Li , Peiyan Yin
Tax reforms have a profound impact on corporate compensation. While existing research has extensively examined the effects of tax cuts and breaks on corporate compensation, the relationship between tax refunds and executive compensation remains largely unexplored. To address this gap, this paper employs a difference-in-differences approach to investigate the causal effect of China’s value-added tax credit refund policy on executive compensation. The findings reveal that the tax refund policy increases executive compensation, primarily by enhancing net income, which lays the financial foundation for higher executive compensation. These effects also exhibit heterogeneity across corporate regions, life cycle stages, ownership structures, and executive categories. This paper is the first to explore the relationship between tax refunds and executive compensation, providing valuable insights into how external tax policies influence corporate internal incentive structures.
{"title":"Does tax refund policy boost executive compensation?","authors":"Haiyan Li , Peiyan Yin","doi":"10.1016/j.eap.2024.09.030","DOIUrl":"10.1016/j.eap.2024.09.030","url":null,"abstract":"<div><div>Tax reforms have a profound impact on corporate compensation. While existing research has extensively examined the effects of tax cuts and breaks on corporate compensation, the relationship between tax refunds and executive compensation remains largely unexplored. To address this gap, this paper employs a difference-in-differences approach to investigate the causal effect of China’s value-added tax credit refund policy on executive compensation. The findings reveal that the tax refund policy increases executive compensation, primarily by enhancing net income, which lays the financial foundation for higher executive compensation. These effects also exhibit heterogeneity across corporate regions, life cycle stages, ownership structures, and executive categories. This paper is the first to explore the relationship between tax refunds and executive compensation, providing valuable insights into how external tax policies influence corporate internal incentive structures.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 898-911"},"PeriodicalIF":7.9,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142421468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-05DOI: 10.1016/j.eap.2024.10.001
Fei Xue
Cross-border e-commerce, as an innovative format and model of international trade, plays a crucial role in accelerating the transformation and upgrading of industrial structures, and shaping a modern economic framework. Using panel data from 260 prefecture-level cities in China from 2003 to 2019, this study investigates the impact of the cross-border e-commerce comprehensive pilot area (CBECCPA) policy on the upgrading of service industry structure and its mechanisms using the staggered difference-in-differences (DID) method. The results show that the CBECCPA policy can significantly promote the upgrading of service industry structure. The mechanism analysis reveals that the CBECCPA policy can promote the upgrading of service industry structure by clustering service industry enterprises, bolstering urban innovation, and increasing the scale of trade. Heterogeneity analysis indicates that the impact of the CBECCPA policy on the information transmission, software, and information technology service industry is more pronounced and the policy effect is stronger for those with a lower level of service industry structure and for pilot areas with higher levels of development, developmental foundation, developmental scale, and developmental innovation. Furthermore, the policy effect varies significantly across cities. This study provides empirical evidence and policy insights into the role of the CBECCPA in the upgrading of service industry structure.
{"title":"Driving economic transition: The impact of cross-border e-commerce policy on the upgrading of service industry structure","authors":"Fei Xue","doi":"10.1016/j.eap.2024.10.001","DOIUrl":"10.1016/j.eap.2024.10.001","url":null,"abstract":"<div><div>Cross-border e-commerce, as an innovative format and model of international trade, plays a crucial role in accelerating the transformation and upgrading of industrial structures, and shaping a modern economic framework. Using panel data from 260 prefecture-level cities in China from 2003 to 2019, this study investigates the impact of the cross-border e-commerce comprehensive pilot area (CBECCPA) policy on the upgrading of service industry structure and its mechanisms using the staggered difference-in-differences (DID) method. The results show that the CBECCPA policy can significantly promote the upgrading of service industry structure. The mechanism analysis reveals that the CBECCPA policy can promote the upgrading of service industry structure by clustering service industry enterprises, bolstering urban innovation, and increasing the scale of trade. Heterogeneity analysis indicates that the impact of the CBECCPA policy on the information transmission, software, and information technology service industry is more pronounced and the policy effect is stronger for those with a lower level of service industry structure and for pilot areas with higher levels of development, developmental foundation, developmental scale, and developmental innovation. Furthermore, the policy effect varies significantly across cities. This study provides empirical evidence and policy insights into the role of the CBECCPA in the upgrading of service industry structure.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 941-956"},"PeriodicalIF":7.9,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142431936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"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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