Emal Address:
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The Ecological Impacts of Place-based Policies: Evidence from Special Economic Zones in China
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Title:
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The Ecological Impacts of Place-based Policies: Evidence from Special Economic Zones in China
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Author:
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钟 佳鑫
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co-Authors:
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吴建新，肖俊极，林蔚
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Organization:
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Conference presentation:
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2024 CES China Annual Conference, July 5-7, 2024, Hangzhou, Zhejiang University
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Abstract:
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While the economic impacts of place-based policies have been extensively studied in China, there has been limited research focusing on the ecological consequences of such policies. This paper addresses this gap by analyzing county-level panel data on the Normalized Difference Vegetation Index (NDVI) from 2001 to 2009, which serves as an indicator of deforestation. The study examines the unintended ecological effects of the establishment of provincial-level Special Economic Zones (SEZs) in China in 2006, a significant year for SEZ establishment. Using a difference-in-differences strategy, the findings reveal a significant reduction in NDVI within the SEZs compared to non-SEZ areas. This effect is particularly pronounced on the east of the "Hu line," an imaginary boundary that divides China into two regions with contrasting population densities. Mechanism analyses suggest that deforestation occurs through both direct channels, such as the surge in infrastructural construction, and indirect channels, including increased demand for land- or resource-intensive goods. Given the growing concern for ecological quality in China and globally, these results emphasize the importance of developing policies that compensate for the ecological losses resulting from the economic success of SEZs in China.
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Full-text paper link:
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@copyright by Chinese Economist Society.