China Policy Research Articles

Competition policy and labor income share: Evidence from the antitrust policy in China

This study examines the impact of increased market competition on labor income share. We use the enactment of China's Anti-Monopoly Law as a quasi-natural experiment. The results reveal that the Anti-Monopoly Law has a significant positive effect on the labor income share of firms with higher market power. This is because the rising market competition, effected by the Anti-Monopoly Law, inhibits market power and increases average labor wages. Our findings are relevant for firms in provinces with higher administrative monopolies, with less competition, and under industries with less competition.

Analysis of the spatial association network structure of China’s green innovation efficiency

Improving the green innovation efficiency (GIE) is the main approach to high-quality development in China. Identifying the spatial distribution and influencing factors of GIE is conducive to sustainable and balanced regional development. In this research, the slack based measure-data envelopment analysis model (SBM-DEA) is used to measure the GIE of 30 provinces in China from 2013 to 2023. The gravity model and social network analysis methods are used to explore the spatial correlation of GIE in the provinces. The influencing factors of GIE are analyzed by the Tobit model. The results show that: (1) During the study period, the GIE of China’s provinces presented a high level, the spatial accumulation characteristics were obvious and the spatial correlation showed a complex network structure; (2) The association network is still in the primary stage, and the network strength and network association degree are low; (3) Provinces with strong innovation ability do not affect the green innovation of other provinces. In addition, these regions have obtained higher innovation linkage benefits from other provinces; (4) The amount of patent, education and government support have a significant positive impact on GIE, while total energy consumption and the secondary industry’s share of the gross domestic product have a significant negative impact on GIE. This study will reveal the characteristics of green innovation behavior of China from a new perspective, and provide a scientific basis for the formulation of green innovation behavior and related policies of China.

Study on decarbonization trajectories and policy implications for China: A comparative analysis of carbon peak nations.

Amidst escalating global concerns over climate change and the pressing need for sustainable development, this study conducts a comparative analysis across 24 nations that have successfully achieved carbon peaking, evaluating their socioeconomic characteristics and carbon reduction strategies. Simultaneously, it examines China's policy evolution and strategic responses within the context of its economic and urban development. The analysis reveals that countries with successful carbon peak outcomes typically exhibit high GDP per capita and advanced urbanization rates. Critical to their success are comprehensive adjustments in energy consumption structures and industrial transformation, which are supported by robust environmental policies and technological innovation. The study categorizes global carbon reduction policies into three primary categories and seven sub-categories, reflecting the dynamic evolution of policy approaches driven by global climate agendas and varying stages of national development. Strategies including legal frameworks, carbon pricing mechanisms, international cooperation, and technological innovation are critically assessed for their potential to refine China's carbon policies. Significant challenges in policy implementation are identified, particularly in aligning ambitious environmental strategies with economic objectives and managing transition costs in critical sectors such as energy and transportation. The study emphasizes the necessity of a phased policy implementation approach, which begins with enhancing public and corporate environmental awareness, advances through the promotion of low-carbon technologies, and concludes with the establishment of stringent legal and regulatory frameworks.

Environmental Protection Tax Reform in China: A Catalyst or a Barrier to Total Factor Productivity? An Analysis through a Quasi-Natural Experiment

China’s 2018 environmental protection tax (EPT) reform was introduced in response to increasing concerns about environmental degradation. It aimed to use fiscal policy to enhance environmental governance while fostering economic productivity. This study employs a difference-in-differences approach to analyze panel data from publicly listed companies between 2009 and 2019. It examines the reform’s influence on total factor productivity (TFP) in pollution-intensive industries, addressing both environmental and economic objectives. The results reveal that the tax reform significantly enhances TFP, acting as a robust catalyst for economic growth rather than a barrier. This effect is particularly strong in state-owned enterprises and those with less-severe financing constraints. Mechanism analysis indicates that the reform boosts TFP through the promotion of green innovations and alleviation of financing constraints. These findings provide empirical evidence at the micro-level of the reform’s efficacy in promoting sustainable business practices. The study offers insights for future environmental tax policies in China and underscores the necessity of aligning environmental and economic strategies to achieve sustainable development.

Institutional Performance and Carbon Reduction Effect of High-Quality Development of New Energy: China’s Experience and Policy Implication

Based on the policy text from 1999 to 2022, this paper quantitatively analyzes photovoltaic power, wind power and new energy policies in mainland China by keyword capture and policy strength and establishes a spatial Durbin model to study the carbon reduction effects. The results show the following: (1) The development of new energy is primarily project-based and concentrated in rural areas. (2) Financial support is a double-edged sword. (3) After the implementation of the Renewable Energy Law in 2015, the change trend in policy quantity, total policy intensity, and average policy intensity is generally consistent. (4) The increase in the strength of new energy policies has effectively reduced the intensity of provincial carbon dioxide emissions. (5) New energy policies introduced in a single region are less effective in reducing carbon emissions than joint regional regulation. Therefore, it is necessary to improve the quality and coordination of new energy policies through the effective convergence of policies and regular evaluations to enhance the positive guidance of the policies. Policy measures for new energy are refined in three areas: improving the amount and quality of new energy policies, strengthening new energy policies and establishing cooperation mechanisms for the cross-regional consumption of new energy.

Achilles’ heel: elderly COVID-19 vaccination policy in China

BackgroundDespite high overall COVID-19 vaccine coverage, the continuously low elderly vaccination rate in mainland China remains a dangerous threat as the country shifts away from its zero-Covid policy. This retrospective study uses the Multiple Streams Framework to examine how macro-level factors may explain poor elderly vaccination outcomes.MethodsWe performed a thematic analysis of qualitative data obtained from 95 official press conferences from October 20, 2020, to February 27, 2023, vaccination-related policy documents, and media coverage, using both inductive and deductive coding approaches.ResultsOur findings suggest that in the problem stream, elderly vaccination was not a “focusing event” during the initial vaccine rollout, resulting in delayed outreach to this population. Additionally, ideologically driven complacency and discrepancies in top-down implementation undermined elderly vaccination in the political stream. In the policy stream, precautious and ambiguous statements, inconsistent policy content, radical shifting media messages, and less age-friendly digital technologies also affected elderly vaccination.ConclusionsThe poor convergence of the three streams led the elderly to be the Achilles’ heel of China’s COVID-19 containment strategy. Future studies should focus on priority identification, adoption of enforcement measures, and timely and effective policy dissemination. The empirical lessons from China can inform and optimize elderly vaccination policy design and implementation in the post-pandemic era.

Water rights and firm productivity: evidence from the water rights trading policy in China

ABSTRACT Industrial firms are significant consumers of freshwater globally, but the impact of water management policies, particularly water rights trading, on their performance is not well understood. This study investigates the impact of the water rights trading policy on firm productivity in China. Employing the difference-in-differences approach and using data from Chinese listed firms during 2009–2019, we find that on average, the water rights trading policy increased the total factor productivity of firms by 6%. This productivity effect is confirmed through several robustness checks. We validate the enhancement of water utilization under the water rights trading policy and find that the productivity improvement effects of the water rights trading policy are mainly through alleviating resource misallocation, stimulating innovation activities and easing financial constraints. Heterogeneity analysis indicates that private firms, firms located in regions with abundant water resources, firms located in areas with more improved water infrastructure and firms operating in high water consumption industries benefit more from the policy. This study emphasizes the importance of water rights trading for industrial firms, demonstrating its effectiveness beyond the agricultural sector.

Allowance or service: Public attitudes toward childcare‐related family policies in China

AbstractChildcare has been considered a ‘new’ social risk and various childcare regimes have been developed worldwide to tackle this social problem. While welfare attitude studies have paid attention to public attitudes toward childcare services, little is known about public attitudes toward other childcare‐related family policies (i.e., leave and allowance). Using novel and unique survey data on welfare attitudes from China, this article investigates how socioeconomic factors matter to general as well as prioritised support for three types of childcare‐related family policies and to policy regimes in China where low fertility crisis is emerging. The survey data suggests the biggest gap between general and prioritised support is found in allowance policy and the smallest in service policy. Regression models suggest that the biggest gap between general and prioritised support for allowance policy can be explained by the reversed and negative effects of education and gender. We further develop a typology of public support for childcare regimes using Latent Class Analysis (LCA) and find four types: implicit and explicit familialism, de‐familialism, and ambiguous familialism. The results of multinomial logistic regression on public support for childcare regimes confirm the findings on prioritised support for different policies and suggest a bifurcation effect of age on regime preferences. We discuss the implications of the findings in the conclusion.

Research on Evolution and Recommendations of China’s PM2.5 and O3 Pollution Control Policies under the Carbon Peak and Carbon Neutrality Targets

In recent years, the issue of PM2.5 and O3 pollution in China has gradually become a hot topic in air pollution control. Powerful, precise, and clear policies are important to guide the efficient control of PM2.5 and O3 pollution. However, research on PM2.5 and O3 pollution policies is very limited. Moreover, these reports have failed to identify all the specific characteristics of the PM2.5 and O3 pollution policies in China, leading to inefficient control of PM2.5 and O3 pollution. Therefore, based on the external features and internal structures of relevant policy documents, this paper conducts a detailed bibliometric analysis to elucidate the evolution of PM2.5 and O3 pollution control policies in China. The results reveal the following: (1) The PM2.5 and O3 pollution control policies in China exhibit a characteristic of “top-down cross-level response lag”, transitioning from individual pollutant control to coordinated control of PM2.5 and O3 pollution. (2) The Ministry of Environmental Protection and the Ministry of Ecology and Environment have been the two major policy issuers in China’s government, focusing on “Technology” and “Monitoring”, respectively. However, the aforementioned policies are mainly implemented by local governments, with limited interregional cooperation but an overemphasis on enterprise pollution control and emergency systems. (3) In terms of policy instruments, supply- and environment-oriented policy instruments are predominant, whereas demand-oriented policy instruments are inadequate. Therefore, it is suggested to utilize the synergistic effect of pollution reduction and carbon mitigation to achieve the goal of the “dual carbon” strategy, enhance public participation to strengthen cooperation among diverse stakeholders, strengthen cross-regional cooperation to overcome governance barriers, and reasonably optimize the use of policy instruments to form an effective combination of policy instruments.

Nurturing Creativity and Talent in After-School Musical Societies under the 'Double Reduction' Policy in China

In 2021, China issued the "Opinions on Further Reducing the Homework and Off Campus Training Burden of Students in Compulsory Education". This title highlights the element of innovation within after-school musical societies in Nanjing's primary schools, showcasing their ability to adapt and find creative solutions within the constraints of the 'Double Reduction' policy. This paper examines the after-school musical societies in three primary schools in Nanjing within the context of the 'double reduction' policy. Through questionnaire survey and interviews, it aims to explore the current state of these societies and identify the challenges they face in their establishment.

A 10-m scale chemical industrial parks map along the Yangtze River in 2021 based on machine learning

Strengthening industrial pollution control in the Yangtze River is a fundamental national policy of China. There is a lack of detailed distribution of chemical industrial parks (CIPs). This Study utilized random forest (RF) and active learning to generate the distribution map of CIPs along the Yangtze River at 10-m resolution. Based on Sentinel-2 imagery, spectral and texture features are extracted. Combined with the Points of Interest (POI), a multidimensional feature space is constructed. By employing partitioned training, classification of CIPs map is achieved on Google Earth Engine (GEE). Technical validation along the entire Yangtze River demonstrates a model accuracy of 80%. Compared to traditional manual survey methods, this approach saves significant time and economic costs while also being timelier. As the first publicly available CIPs map within a 5-km range along the Yangtze River, this research will provide a scientific basis for the fine governance of chemical industries in the region. Additionally, it offers a model guide for the accurate identification of the chemical industry.

Getting robots in ‘our own hands’: Structural drivers, spatial dynamics and multi-scalar industrial policy in China

Getting robots in ‘our own hands’: Structural drivers, spatial dynamics and multi-scalar industrial policy in China

A study of the impact of the environmental protection tax on corporate employment: Evidence based on listed companies in polluting industries.

The implementation of the environmental protection tax (EPT) is a crucial step in the tasks of achieving the "double-carbon" objective and fostering comprehensive green economic and social growth. The literature on the effect of EPT policies has focused mainly on environmental effects and economic effects and has rarely paid attention to social effects, such as the impact of such policies on employment. By reference to data regarding pollution-intensive listed companies in China from 2014 to 2022, this article uses the 2018 EPT reform as a quasi-natural experiment to explore the effects of EPT on employment within these industries. The EPT reform is shown to have a significant dampening effect on corporate employment in the pollution industry, a conclusion that continues to hold after a number of robustness tests, including the differences-in-differences-in-differences (DDD) tests, the parallel trend test, the placebo test, and the PSM-DID test. Further analysis shows that the EPT reform suppressed employment in polluting industries mainly through two pathways: the output effect and the factor substitution effect. Moreover, the EPT reform generated more significant disincentives to employment in non-state-owned enterprises, large-scale enterprises, and mining industries. This study's findings can serve as a crucial reference for policies in China that aim to promote high-quality full employment in the context of environmental governance. The results of this research can also serve as a reference for a cost‒benefit analysis of environmental policies in China in terms of employment and provide a theoretical basis for and practical experience regarding the task of coordinating the relationship between environmental governance and employment regulation in China.

Green finance pilot policy and corporate environmental social responsibility: empirical evidence from China's green finance reform and innovation pilot zones.

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system.

Digital Technology and Tourism Development: Evidence from the E-Commerce Pilot City Policy in China

Digital Technology and Tourism Development: Evidence from the E-Commerce Pilot City Policy in China

Can e-commerce narrow regional economic disparities? Evidence from national e-commerce demonstration cities policy in China

Can e-commerce narrow regional economic disparities? Evidence from national e-commerce demonstration cities policy in China

Comparative Analysis of Carbon Tax and Carbon Emission Trading Policies in the Context of Carbon Emission Reduction: Based on the Perspective of the Power Industry

In this paper, we focus on China's power sector to investigate ways to improve emissions reductions in the context of global warming and rising carbon emissions. This paper reviews the current state of adapted carbon emission reduction policies in China's power industry and assesses the potential effectiveness of two mechanisms, carbon taxation, and carbon trading, in achieving substantial emissions reductions. China's power sector is a major contributor to global carbon emissions, and the paper explores the balance between short-term carbon tax policies and long-term carbon trading strategies aimed at promoting an early peak in carbon emissions as well as carbon neutrality within the country. This research finds that the carbon tax can have positive impacts in the short term, whereas carbon trading exhibits higher efficiency in the long term. The paper addresses this by proposing a combination of the two mechanisms to achieve effective emissions reductions in the power industry, supporting China's goal of achieving carbon neutrality by the time of 2060. Finally, we explore the feasibility and benefits of implementing a carbon tax, highlighting its suitability for near-term implementation in the power industry. We conclude that a combination of carbon taxes and carbon trading can make a significant contribution to China's carbon peak and carbon neutrality targets.

Evolution of Family Education Concepts, Policies and Legalization in China

The reform and opening up has ushered in a new era in which the concepts, policies , and legalization of family education in China have gone through a significant evolution. The concepts of family education have gone through three critical phases of change: the development period, the integration period , and the modernization period. The evolution of family education policies has been divided into three phases: gradual exploration after the reform and opening up, reform and development after the 21st century, and the recent comprehensive deepening stage. The legalization process of family education also encompasses three significant developmental phases: systematic planning, scientification and specialization, and socialization. Multiple factors, including social transformation, international cultural exchanges, and parental qualities have propelled this evolutionary process. Looking ahead, developing a more comprehensive, equitable, and modern family education system will be facilitated through guidance and support from national policies, sustained reinforcement of international exchanges and collaborations, and the enhancement of parental qualities.

Under the "Dual-carbon" Goal: Green Credit Policy and High-quality Enterprise Development in China

Given the context of "carbon peaking" and "carbon neutrality" goals, advancing the growth of green finance stands as a crucial agenda to bolster the high-quality advancement of China's economy in the contemporary epoch. Green credit is a remarkable milestone in pursuing the "Dual-carbon" emissions reduction objective and promoting high-quality development. Empirically, scant information exists regarding the correlation between GCP and the high-quality development of heavily polluting enterprises (HPEs). Using panel data from Chinese Lushan A-share listed enterprises spanning 2005 to 2022, this study employs the difference-in-difference model to evaluate the impact of the green credit policy (GCP) on HPEs. Our results show that after the implementation of GCP, the high-quality development of HPEs increased by 9.08% compared to non-HPEs. Despite considering multiple potential confounding factors, the conclusion remains unchanged. The positive effect is particularly pronounced among non-state-owned enterprises characterized by high carbon emissions and in the eastern region. The mechanism analysis indicates that GCP plays a role in influencing the high-quality development of enterprises by promoting low-carbon technological progress. This study establishes a foundation for making informed decisions in optimizing the green financial policy system to effectively enhance the high-quality development of enterprises in China and other developing countries.

Veto and versatile: understanding the local implementation of environmental policies in China

ABSTRACT Whether local governments effectively implement environmental policies is crucial for successfully addressing global environmental challenges. However, scholars are still unclear about when and why local implementation of environmental policies fails, especially in developing countries where high priority is often given to economic development and where local officials are held accountable upwards. In this study, we investigate how prefectural city governments implement environmental performance assessment policy (EPAP) in China. Based on a sample of prefecture-level cities from 2005 to 2015 and a difference-in-differences estimator, we find that the EPAP has effectively reduced pollution emissions. However, the pollution abatement effect only emerges in assessment years but not in non-assessment years, indicating an opportunistic implementation of environmental policy at the city level. The opportunistic implementation behaviour is more evident in cities where emission reduction task is higher and where city mayors lack environmental work experience or professional expertise.