Three Essays on Agricultural Development and Environmental Economics in China


Book Description

In the first chapter, I investigate the effect of land fragmentation on machinery use as well as the effect of machinery use on crop production. The data come from a farm survey in Hebei and Shandong provinces in 2008. Endogeneity is addressed by utilizing land fragmentation due to previous long-term land assignment as an instrument and first difference estimation between normalized wheat and corn output from the same plots in the same year. The main results indicate that consolidating an average farm of 0.31 hectares from 2.28 plots to one plot increases machinery use by about 10%. Further, a 10% increase of machinery use increases crop production between 0.5% and 1%.




Three Essays on Sustainable Development in China


Book Description

The first essay focuses on the role of the hukou (i.e. Household Registration System) with full awareness of the economic system it operates under, and the development model it assists. I find that hukou's main role in the planned economy was to assist socialist industrialization while averting the Lewis development model, a development strategy based on unlimited supply of labors from the rural sector, largely adopted in developing countries. In the market reform period, hukou performed exactly the opposite function, which is to assist the Lewis model based on the unlimited supply of rural surplus labor "released" from the rural de-collectivization. Based on these results, I argue that the interacting effects of the hukou and the economic system, rather than hukou alone, should be the analytical focus to address important development topics such as industrialization, urbanization, spatial and social inequality. The second essay compares the different agricultural investment patterns when agricultural credit is borrowed on a collective basis versus on an individual basis. I find that on the same income level, a one percent increase in the IC ratio (i.e. the ratio of loan made on individual base relative to on a collective base) leads to of a two percentage point decline on irrigation investment. On the other hand, a one percent increase in the IC ratio leads to about 10 percentage point increase in fertilizer use. Based on these results, I argue that the form of agricultural lending matters significantly in decisions regarding agricultural investments. Collective-based agricultural lending tends to be channeled to investment that contributes to more sustainable agricultural development yet with returns only in the intermediate or long run (such as irrigation). The third essay addresses the employment issue through estimating the relative employment impacts of renewable energy investments versus spending within the traditional fossil fuel sectors. I find that spending within three segments of the renewable energy sectors - solar, wind and bioenergy, will produce in combination about twice as many jobs per dollar of expenditure than an equal amount of spending on fossil fuels. I also find that, more than 70% of jobs from renewable energy sectors are created in the informal economy. Overall, the results of my estimates demonstrate that, for the case of China, the project of building a clean energy economy does not face the prospect of a massive obstacle in terms of negative employment effects.







Three Essays on China's Political Economy, Environmental Policy, and Green Job Guarantee


Book Description

This dissertation contributes to the study of the Chinese economy by elaborating China’s alternative economic system, examining the evolution of Chinese environmental policies, and proposing a Chinese Green Job Guarantee. Delineating China’s political economy post-1949, I challenge the Eurocentric interpretation of China’s post-1978 economic reform as an incomplete and ongoing transition and argue that the Chinese economy, instead of transitioning, has transformed into a distinct type of market economy. To understand the Chinese economy, the question to ask is not whether China today is capitalist or socialist, or whether the Chinese government is interfering too much with the market, but rather what kind of a market economy could best fulfill the developmental vision set by the Chinese state. Echoing this finding, I illustrate that the Chinese environmental policies have evolved from contradiction to synthesis since 2005, and hence the Chinese state has been and likely will be shaping China’s environmental landscape more responsibly and effectively into the future. Finally, I demonstrate that the Chinese state should and can implement a Green Job Guarantee program to coordinate economic growth, full employment, structural adjustments, and environmental sustainability. In 2019, increasing China’s fiscal deficit by 1.58% of GDP would have financed a complete Job Guarantee to eliminate China’s 24.27 million urban unemployment and elevate the country’s GDP growth rate to the 9.23% and 10.65% range.




Chinese Research Perspectives on the Environment, Special Volume


Book Description

This collection features articles that originally appeared in the first three volumes of the Chinese edition of China Environment and Development Review. Written by longtime students of China’s environmental challenges and experts working on the research and policy-making frontlines, these pieces provide an evolutionary perspective on both the intellectual understanding of and efforts to address the country’s growing environmental woes. As the environmental condition has continued to worsen in recent decades, Chinese researchers have made admirable efforts toward grappling with the immensity of the problems, including institutional factors that have either compounded or obstructed efforts to mitigate them. Case studies show what works or does not in what will no doubt be a long and difficult journey toward sustainable development and environmental restoration.







China’s Grain for Green Program


Book Description

This book provides a comprehensive review of Grain for Green, China’s nationwide program which pays farmers to revert sloping or marginal farm land to trees or grass. The program aims to improve the ecological conditions of much of China, and the socioeconomic circumstances of hundreds of millions of people. GfG is the largest reforestation, ecological restoration, and rural development initiative in history, combining the biggest investment, the greatest involvement, and the broadest degree of public participation ever. The book is organised in three sections. Part One reviews the history of land management in China from 1949 to 1998, exploring the conditions that led to the introduction of GfG, and comparing it to other reforestation programs. Part Two offers an overview of GfG, describing the timeline of the program, compensation paid to farmers, the rules concerning land and plant selection, the extent to which these rules were followed, the attitudes of farmers towards the program, and the way in which the program is organized and implemented by various state actors. Part Three discusses the impact of the GfG, from both ecological and socio-economic standpoints, looking at the economic benefits that result from participating in the GfG, the impact of the GfG across local economies, the redistribution of the labor force and the sustainability of the program, in particular the question of what will happen to the converted land when payments to farmers end.




Sustainable Ecological Agriculture in China


Book Description

Ecological economics emphasizes the two-way interdependencies between the micro and macro levels. Although the questions about ecological agricultural research arise from the local level, their answers may lie at higher levels within the realm of political economy. Therefore, it requires substantial research not only on the links between local production systems and the larger national economy, political structures, and decision-making processes, but also the role and limitations of the national and local authorities in policy development and implementation. There is also scant research on Chinese ecological agriculture published in English. This book helps fill the void. It employs a trans-disciplinary approach to investigate the connection and discrepancy between knowledge and actions. It presents methodological perspectives and practical suggestions for the comprehensive analysis of ecological agriculture as inputs to improved agricultural policy-making for sustainability practices. In this way, this book illuminates the possibility of bridging the gap between local level implementation and the larger political-economic processes. This book helpfully provides a comprehensive analytical framework within which agricultural sustainability can be better analyzed and understood by articulating ecological economics as a policy science to guarantee transparency and fairness in the decision-making process . It shows the important role that traditional culture can play in promoting ecologically and socially sound development. It further emphasizes the imperative to move the ideology of ecological agriculture into the political realm and promotes a continuous dialogue between researchers, practitioners, and policy makers. It also suggests that local government has a significant role to play in establishing appropriate institutional arrangements and policy settings (e.g., bottom-up policy initiatives) for sustainable ecological agricultural development. By elaborating on the methodological synthesis of ecological economics and system dynamics modeling as a holistic approach to facilitate an improved policy-making process for agricultural sustainability, this book demonstrates the effectiveness of this alternative approach to improve policy making process and facilitate the realization of sustainability through a case study in China. This book will be an important resource not only to those interested in China, but also to scholars and policy makers around the world because of its global relevance in the areas of ecological economics, ecological agriculture, sustainable resource management, political economy, system dynamics thinking and modeling, and participation in the policy-making process.




An Integrated Assessment of China’s Ecological Restoration Programs


Book Description

China has been undertaking unprecedented ecological restoration efforts to deal with its problems of soil erosion, flooding, dust storms, and habitat loss. While there have been studies of these efforts, questions remain concerning whether they have been effectively implemented, what their induced socioeconomic and ecological impacts are, and how their performance can be improved. Tackling these important questions in an integrated manner, “An Integrated Assessment of China’s Ecological Restoration Programs” is extraordinary for its broad coverage and methodological rigor. It provides a substantial improvement over the conventional approach of simply reporting projects undertaken and accepting uncritically the government assessment, and thus fills an important knowledge gap of the restoration efforts being implemented upon a variety of ecosystems in China.