The impact of environmental pollution on labor supply: empirical evidence from China

Does environmental pollution reduce residents' income? Evidence from CFPS in China

Understanding the relationship between environmental pollution and residents' income is extremely important for promoting sustained progress and high-quality economic growth. This research examines the impact, mechanism, and heterogeneity of environmental contamination on residents' earnings by fusing the micro data from China Family Panel Survey with the macro data of government statistics. The results reveal that environmental degradation has a significantly negative impact on residents' individual income. Further research on the intermediary mechanism finds that environmental pollution plays a harmful role in residents' income by reducing residents' subjective well-being and labor employment. Besides, the income effect of environmental pollution is significantly heterogeneous among different regions and differentiated groups. The deteriorating environmental quality widens urban-rural income gap and increases wage inequality of inhabitants in eastern, central, and western regions of China. The gender income gap and the income disparity between different income brackets also expand with environmental deterioration. These findings not only prove that long-term development at the cost of the ecological environment is undesirable, but also demonstrate the important role of the improvement of ecological environmental quality in promoting human well-being.

The effect of haze pollution on rural-to-urban migrants' long-term residence intentions

Severe haze pollution in China threatens human health, and its negative effect hampers rural-to-urban migrants' settlement intentions in destination cities. Using the 2017 China Migrants Dynamic Survey Data (CMDS), the satellite data of PM2.5, and city-level data, this study investigates the impact of haze pollution on rural migrants, long-term residence intentions in Chinese context with IV-probit model, and mediating effect model. Overall, we find an inverted U-shaped relationship between the level of haze pollutants and rural migrants' long-term settlement intentions. Robustness check using multi-measures and thermal inversion as the instrumental variable supports this conclusion. The mediating effect model shows haze pollution plays its role through two opposite mechanisms: signal effect and health effect. When the size of signal effect is larger than health effect, rural migrants are inclined to settle down in their host cities; otherwise, they show lower settlement willingness. The turning point appears when PM2.5 concentration reaches 38.5 μg/m3; migrants have the highest long-term residence intentions. Currently, the national average PM2.5 concentration is 40.98 μg/m3, indicating that China is at the stage where the health effect of haze pollution holds a dominant position. Haze pollution has heterogeneous impacts on migrants' residence intentions. From the individual level, the younger generation, female, and higher-educated migrants have a higher tolerance for polluted air. From the city level, migrants who work in the city with 5 to 10 million dwellers have the highest long-term residence intention and are less sensitive to haze pollution. Thus, we propose stringent environmental regulations and more inclined public service policies to migrants.

Can the digital economy development achieve the effect of pollution reduction? Evidence from Chinese Cities

As a new economic form, the digital economy is not only empowering new impetus to economic growth, but also reshaping specific business forms of economical operation. Therefore, we conducted an empirical test to verify the impact and mechanism of pollution reduction in the digital economy, based on the panel data of 280 prefecture-level cities in China from 2011 to 2019. The results show that, first the development of the digital economy indeed has the positive effect of realizing pollution reduction. The results of mediating effect test indicate the influence mechanism mainly rely on promoting the upgrading of industrial structure (structural effect) and upgrading the level of green technology innovation (technical effect). Second, the results of regional heterogeneity analysis show that the emission reduction effect of digital economy development on four pollutants is characterized by weakness in the east and strong in the west in regional distribution. Third, the development of digital economy has a threshold effect on the level of economic development to achieve its pollution reduction effect. Further identification of the threshold effect indicates that the higher the level of economic development, the better in emission reduction effect.