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ID:
161773
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| Summary/Abstract |
Fiscal spending has both direct and indirect impact on the environment. Using city-level data in China, this paper investigates if education spending affects air pollution through human capital accumulation, known as the composition effect, and if R&D spending affects air pollution through clean-technology adoption, known as the technique effect. Contrasting theoretical predictions and previous empirical evidence, we find both effects of interest to be trivial in urban China. Composition effect appears to be slightly stronger relative to technique effect, while sub-sample analyses show some regional heterogeneities. The results remain robust when we switch between pollution measurements, examine only the regional central cities, instrument endogenous covariates, and adopt the spatial settings. We further discuss potential channel-blocking mechanisms that lead to weak estimates.
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| 2 |
ID:
157300
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| Summary/Abstract |
This article contributes to the understanding of innovative behaviour in China’s large and medium-sized firms and hence the role of Chinese firms in innovation. The empirical analyses are based on firm-level survey data. Innovation has important implications not only for the transformation of the Chinese economy but also for the rest of the world as Chinese firms become increasingly active internationally. Specifically, this article explores the factors underlying the propensity, intensity and persistence of research and development (R&D) spending in Chinese firms.
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