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Research to manage the Environment for Development

Recent publications


A Study of Forestry Policy Evolution and Development Tendency in China After the Reform and Opening-up

This study reviewed the forestry policy evolution in China as of the reform and opening-up, and concluded the three basic evolution tendencies in the forestry policies, i.e., 1) The Pareto improvement has become the core principle of policy adjustments; 2) The forest tenure owned by peasants has been expanded and strengthened in practices; 3) The forest protection is an essential part included in the forestry development strategy. Based on the review and analysis, the authors came up with the new thoughts on the future


The political intergenerational welfare state

Using a three-period overlapping generations economy framework, we characterize an intergenerational welfare state with endogenous education and pension under voting. We show that although politically establishing Pay-As-You-Go (PAYG) social security in isolation in a dynamically efficient economy will always reduce the capital investment and therefore the social welfare as expected, in contrast politically implementing education-pension policy package instead can improve both human and physical capital accumulation and social welfare over laissez faire.


Distance to Work in Beijing: Institutional Reform and Bargaining Power

In this study, we use a large sample from the Beijing Household Travel Survey to build husband-wife dyads, construct variables to measure bargaining power between spouses and place intra-household travel arrangements within a broader institutional framework to analyse relationships between institutions, bargaining power and travel patterns of married men and women. The empirical results reveal that bargaining power does matter in determining intra-household commute arrangements.


Building a Set of Internationally Comparable Value of Statistical Life Studies: Estimates of Chinese Willingness to Pay to Reduce Mortality Risk

This study is the eighth in a series of stated-preference studies designed to enhance the basis for international benefits transfer of value of statistical life (VSL) estimates. The series has fielded essentially similar stated-preference surveys in Canada, China, France, Italy, Japan, Mongolia, the United Kingdom, and the United States. This Chinese study estimates the willingness to pay for contemporaneous and future mortality risk reductions of residents of Shanghai, Jiujiang, and Nanning, China using a stated-preference payment-card survey.


Village democracy and household welfare: evidence from rural China

Village democratization in rural China is found to have profound impacts on many socio-economic aspects, but little is understood as to how welfare impacts may occur through farmers' principal production activities. This study helps to fill this gap by investigating how village democracy affects rural household welfare through these channels, using a unique household survey. The authors first establish a theoretical framework that links democracy to household welfare through changes in production efficiency.


Option Pricing with the Realized GARCH Model: An Analytical Approximation Approach

We derive a pricing formula for European options for the Realized GARCH framework based on an analytical approximation using an Edgeworth expansion for the density of cumulative return. Existing approximations in this context are based on a Gram–Charlier expansion while the proper Edgeworth expansion is more accurate. In relation to existing discrete-time option pricing models with realized volatility, our model is log-linear, non-affine, with a flexible leverage effect.


The impact of privatization on TFP: A quasi-experiment in China

Using the data of SOEs and Non-SOEs in industrial sector of China from 1998 to 2007, we investigate the impact of privatization on TFP. We construct a difference in difference model and use propensity score method to avoid the selection bias. We use the type of enterprises registration to identify the SOEs and define the privatization. The regress results show, privatization of SOEs can improve the efficiency of enterprises significantly. Some characteristics of firms will affect the effect of privatization.


Stock liquidity and firm value: evidence from China

Empirical evidence for the effect of stock liquidity on firm value is limited and mixed due to a severe endogeneity problem. This article adds to the literature on this topic by providing new empirical evidence using the nontradable share reform in China as a quasi-natural experiment. Our results show that higher stock liquidity can lead to significant firm value improvement.


Temperature and industrial output: Firm-level evidence from China

We pair a firm-level panel of annual industrial output with a fine-scale daily weather data set, to estimate the responses of industrial output to temperature changes in China. We have four primary findings. First, industrial output is nonlinear in temperature changes. With seasonal average temperatures as temperature variables, output responds positively to higher spring temperatures and negatively to elevated summer temperatures.