Environment

FSI scholars approach their research on the environment from regulatory, economic and societal angles. The Center on Food Security and the Environment weighs the connection between climate change and agriculture; the impact of biofuel expansion on land and food supply; how to increase crop yields without expanding agricultural lands; and the trends in aquaculture. FSE’s research spans the globe – from the potential of smallholder irrigation to reduce hunger and improve development in sub-Saharan Africa to the devastation of drought on Iowa farms. David Lobell, a senior fellow at FSI and a recipient of a MacArthur “genius” grant, has looked at the impacts of increasing wheat and corn crops in Africa, South Asia, Mexico and the United States; and has studied the effects of extreme heat on the world’s staple crops.

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SCCEI Spring Seminar Series 


Wednesday, May 18, 2022      11:00 am -12:15 pm Pacific Time

Goldman Room E401, Encina Hall, 616 Jane Stanford Way | Zoom Meeting 


Understanding the Resurgence of the SOEs in China: Evidence from the Real Estate Sector 

We advance a novel hypothesis that China’s recent anti-corruption campaign may have contributed to the resurgence of the state-owned enterprises (SOEs) in China as an unintended consequence. We explore the nexus between the anti-corruption campaign and the SOE resurgence by presenting supporting evidence from the Chinese real estate sector, which is notorious for pervasive rent-seeking and corruption. We use a unique data set of land parcel transactions merged with firm-level registration information and a difference-in-differences empirical design to show that, relative to the industrial land parcels which serve as the control, the fraction of residential land parcels purchased by SOEs increased significantly relative to that purchased by private developers after the anti-corruption campaign. 


About the Speaker 
 

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Hanming Fang

Hanming Fang is an applied microeconomist with broad theoretical and empirical interests focusing on public economics. His research integrates rigorous modeling with careful data analysis and has focused on the economic analysis of discrimination; insurance markets, particularly life insurance and health insurance; and health care, including Medicare. In 2008, Professor Fang was awarded the 17th Kenneth Arrow Prize by the International Health Economics Association (iHEA) for his research on the sources of advantageous selection in the Medigap insurance market. 

Professor Fang received his Ph.D. in Economics from the University of Pennsylvania in 2000. Before joining the Penn faculty, he held positions at Yale University and Duke University.  He is a research associate at the National Bureau of Economic Research, where he served as the acting director of the Chinese economy working group from 2014 to 2016. He is also a research associate of the Population Studies Center and Population Aging Research Center, and a senior fellow at the Leonard Davis Institute of Health Economics at the University of Pennsylvania.


Seminar Series Moderators

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Headshot of Dr. Scott Rozelle

Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of Stanford Center on China's Economy and Institutions in the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University.  For the past 30 years, he has worked on the economics of poverty reduction. Currently, his work on poverty has its full focus on human capital, including issues of rural health, nutrition and education. For the past 20 year, Rozelle has been the chair of the International Advisory Board of the Center for Chinese Agricultural Policy, Chinese Academy of Sciences (CAS). Most recently, Rozelle's research focuses on the economics of poverty and inequality, with an emphasis on rural education, health and nutrition in China. In recognition of this work, Dr. Rozelle has received numerous honors and awards. Among them, he became a Yangtse Scholar (Changjiang Xuezhe) in Renmin University of China in 2008. In 2008 he also was awarded the Friendship Award by Premiere Wen Jiabao, the highest honor that can be bestowed on a foreigner. 

 

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hongbin li headshot

Hongbin Li is the Co-director of Stanford Center on China's Economy and Institutions, and a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR) and the Freeman Spogli Institute for International Studies (FSI). Hongbin obtained his Ph.D. in economics from Stanford University in 2001 and joined the economics department of the Chinese University of Hong Kong (CUHK), where he became full professor in 2007. He was also one of the two founding directors of the Institute of Economics and Finance at the CUHK. He taught at Tsinghua University in Beijing 2007-2016 and was C.V. Starr Chair Professor of Economics in the School of Economics and Management. He founded the Chinese College Student Survey (CCSS) in 2009 and the China Employer-Employee Survey (CEES) in 2014.

Hongbin’s research has been focused on the transition and development of the Chinese economy, and the evidence-based research results have been both widely covered by media outlets and well read by policy makers around the world. He is currently the co-editor of the Journal of Comparative Economics.


A NOTE ON LOCATION

This seminar is a hybrid event. Please join us in person in the Goldman Conference Room located within Encina Hall on the 4th floor of the East wing, or join remotely via Zoom.

Register once to receive the Zoom meeting link that will be used for all lectures in this series.

Questions? Contact Debbie Aube at debbie.aube@stanford.edu


 

Scott Rozelle
Hongbin Li

Hybrid Event: Goldman Room E409, Encina Hall | Zoom Meeting

Hanming Fang
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Urban parks improve quality of life by providing an array of cultural and natural ecosystem services, such as maintaining biodiversity, reducing air pollution, and benefiting residents' physical and mental states. Although government invests a large amount of capital into park management, parks are still underused in many cases. In this study, the association and relative importance of socio-demographic, environmental, and individual factors were investigated with regards to their impact on citizens' park visitation. Data was collected through cross-sectional door-to-door questionnaires and online databases, and was analyzed using a hierarchical regression model. Results showed that physical exercise (27.4% of collected reports) and rest and relaxation (26.7%) were the two most widespread reasons for park use. When asked about constraints of park visitation, time limitations were reported as being the most constraining factor. However, our quantitative analysis found no significant correlation. Socio-demographic, environmental, and individual variables explained 1%, 20% and 26% (adjusted R2) of the total variance in frequency of park visitation between participants, respectively. A citizen's neighborhood greenspace, housing price, and distance from the nearest park were negatively correlated with park use. Among individual factors, a participant's reported affinity for park visits, time spent in their residential greenspace, and number of children under seven were positively correlated with park visitation, with a decreasingβcoefficient. This research highlights the predominant contribution of attitude over accessibility factors when it comes to park visitation. Furthermore, the data indicates that accessibility factors function differently for frequent, infrequent, and moderate park users and provision with parks within 1000 m of their home is recommended. The findings have implications for park management and future research.

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Journal of Cleaner Production
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Climate change and human activities exert a wide range of stressors on urban coastal areas. Synthetical assessment of coastal vulnerability is crucial for effective interventions and long-term planning. However, there have been few studies based on integrative analyses of ecological and physical characteristics and socioeconomic conditions in urban coastal areas. This study developed a holistic framework for assessing coastal vulnerability from three dimensions - biophysical exposure, sensitivity and adaptive capacity - and applied it to the coast of Bohai Economic Rim, an extensive and important development zone in China. A composite vulnerability index (CVI) was developed for every 1 km2 segment of the total 5627 km coastline and the areas that most prone to coastal hazards were identified by mapping the distribution patterns of the CVIs in the present and under future climate change scenarios. The CVIs show a spatial heterogeneity, with higher values concentrated along the southwestern and northeastern coasts and lower values concentrated along the southern coasts. Currently, 20% of the coastlines with approximately 350,000 people are highly vulnerable to coastal hazards. With sea-level rises under the future scenarios of the year 2100, more coastlines will be highly vulnerable, and the amount of highly-threatened population was estimated to increase by 13–24%. Among the coastal cities, Dongying was categorized as having the highest vulnerability, mainly due to poor transportation and medical services and low GDP per capita, which contribute to low adaptive capacity. Our results can benefit decision-makers by highlighting prioritized areas and identifying the most important determinants of priority, facilitating location-specific interventions for climate-change adaptation and sustainable coastal management.

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Environment International
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Nature underpins human well-being in critical ways, especially in health. Nature provides pollination of nutritious crops, purification of drinking water, protection from floods, and climate security, among other well-studied health benefits. A crucial, yet challenging, research frontier is clarifying how nature promotes physical activity for its many mental and physical health benefits, particularly in densely populated cities with scarce and dwindling access to nature. Here we frame this frontier by conceptually developing a spatial decision-support tool that shows where, how, and for whom urban nature promotes physical activity, to inform urban greening efforts and broader health assessments. We synthesize what is known, present a model framework, and detail the model steps and data needs that can yield generalizable spatial models and an effective tool for assessing the urban nature–physical activity relationship. Current knowledge supports an initial model that can distinguish broad trends and enrich urban planning, spatial policy, and public health decisions. New, iterative research and application will reveal the importance of different types of urban nature, the different subpopulations who will benefit from it, and nature’s potential contribution to creating more equitable, green, livable cities with active inhabitants.

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PNAS
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As payment for ecosystem services (PES) programs proliferate globally, assessing their impact upon households’ income and livelihood patterns is critical. The Sloping Land Conversion Program (SLCP) is an exceptional PES program, in terms of its ambitious biophysical and socioeconomic objectives, large geographic scale, numbers of people directly affected, and duration of operation. The SLCP has now operated in the poor mountainous areas in China for 10 y and offers a unique opportunity for policy evaluation. Using survey data on rural households’ livelihoods in the southern mountain area in Zhouzhi County, Shaanxi Province, we carry out a statistical analysis of the effects of PES and other factors on rural household income. We analyze the extent of income inequality and compare the socio-demographic features and household income of households participating in the SLCP with those that did not. Our statistical analysis shows that participation in SLCP has significant positive impacts upon household income, especially for low- and medium-income households; however, participation also has some negative impacts on the low- and medium-income households. Overall, income inequality is less among households participating in the SLCP than among those that do not after 7 y of the PES program. Different income sources have different effects on Gini statistics; in particular, wage income has opposite effects on income inequality for the participating and nonparticipating households. We find, however, that the SLCP has not increased the transfer of labor toward nonfarming activities in the survey site, as the government expected.

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PNAS
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Significance
Understanding costs and benefits to multiple stakeholders, and how they change through time, is essential to designing effective conservation and human development policies. Where, when, and to whom benefits are delivered are rarely analyzed, however. We examine one of China’s conservation–development policies—the Relocation and Settlement Program of Shaanxi Province (RSP)—drawing insights of broad relevance. Although the RSP benefits the municipal government, downstream water consumers, and global beneficiaries, the short-run costs to local households and the municipal government greatly exceed these benefits. Moreover, poor households are unable to pay the upfront costs and have difficulty participating. The RSP is well designed to reduce local ecological pressure and enhance human development, but its effectiveness could be strengthened in key ways.

Abstract
Ideally, both ecosystem service and human development policies should improve human well-being through the conservation of ecosystems that provide valuable services. However, program costs and benefits to multiple stakeholders, and how they change through time, are rarely carefully analyzed. We examine one of China’s new ecosystem service protection and human development policies: the Relocation and Settlement Program of Southern Shaanxi Province (RSP), which pays households who opt voluntarily to resettle from mountainous areas. The RSP aims to reduce disaster risk, restore important ecosystem services, and improve human well-being. We use household surveys and biophysical data in an integrated economic cost–benefit analysis for multiple stakeholders. We project that the RSP will result in positive net benefits to the municipal government, and to cross-region and global beneficiaries over the long run along with environment improvement, including improved water quality, soil erosion control, and carbon sequestration. However, there are significant short-run relocation costs for local residents so that poor households may have difficulty participating because they lack the resources to pay the initial costs of relocation. Greater subsidies and subsequent supports after relocation are necessary to reduce the payback period of resettled households in the long run. Compensation from downstream beneficiaries for improved water and from carbon trades could be channeled into reducing relocation costs for the poor and sharing the burden of RSP implementation. The effectiveness of the RSP could also be greatly strengthened by early investment in developing human capital and environment-friendly jobs and establishing long-term mechanisms for securing program goals. These challenges and potential solutions pervade ecosystem service efforts globally.

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PNAS
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Despite broad interest in using payment for ecosystem services to promote changes in the use of natural capital, there are few expost assessments of impacts of payment for ecosystem services programs on ecosystem service provision, program cost, and changes in livelihoods resulting from program participation. In this paper, we evaluate the Paddy Land-to-Dry Land (PLDL) program in Beijing, China, and associated changes in service providers’ livelihood activities. The PLDL is a land use conversion program that aims to protect water quality and quantity for the only surface water reservoir that serves Beijing, China’s capital city with nearly 20 million residents. Our analysis integrates hydrologic data with household survey data and shows that the PLDL generates benefits of improved water quantity and quality that exceed the costs of reduced agricultural output. The PLDL has an overall benefit–cost ratio of 1.5, and both downstream beneficiaries and upstream providers gain from the program. Household data show that changes in livelihood activities may offset some of the desired effects of the program through increased expenditures on agricultural fertilizers. Overall, however, reductions in fertilizer leaching from land use change dominate so that the program still has a positive net impact on water quality. This program is a successful example of water users paying upstream landholders to improve water quantity and quality through land use change. Program evaluation also highlights the importance of considering behavioral changes by program participants.

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PNAS
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China recently completed its first National Ecosystem Assessment covering the period 2000–2010. Ouyang et al. present the main findings of the assessment. Investment in the restoration and preservation of natural capital has resulted in improvements at the national level in most of the major ecosystem services measured. In particular, food production, carbon sequestration, and soil retention showed strong gains; on the other hand, habitat provision for biodiversity showed a gradual decline. Regional differences remain nonetheless, and there are serious environmental challenges still to be met in areas such as air quality and the wider global footprint of raw material imports.

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PNAS
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Significance
Following severe environmental degradation from rapid economic development, China is now advancing policies to secure biodiversity and ecosystem services. We report the first nationwide assessment, showing that protected areas (PAs) are not well delineated to protect either biodiversity or key ecosystem services. This serious deficiency exists in many countries. We propose creating a national park system in China to help guide development along a path of green growth, improving the well-being of both people and nature. This involves establishing new, strictly protected PAs for biodiversity and ecosystem services that are highly sensitive to human impacts, as well as a new PA category—in China and ideally worldwide—for integrating biodiversity, ecosystem services, and human activities to achieve sustainable development goals.

Abstract
Recent expansion of the scale of human activities poses severe threats to Earth’s life-support systems. Increasingly, protected areas (PAs) are expected to serve dual goals: protect biodiversity and secure ecosystem services. We report a nationwide assessment for China, quantifying the provision of threatened species habitat and four key regulating services—water retention, soil retention, sandstorm prevention, and carbon sequestration—in nature reserves (the primary category of PAs in China). We find that China’s nature reserves serve moderately well for mammals and birds, but not for other major taxa, nor for these key regulating ecosystem services. China’s nature reserves encompass 15.1% of the country’s land surface. They capture 17.9% and 16.4% of the entire habitat area for threatened mammals and birds, but only 13.1% for plants, 10.0% for amphibians, and 8.5% for reptiles. Nature reserves encompass only 10.2–12.5% of the source areas for the four key regulating services. They are concentrated in western China, whereas much threatened species’ habitat and regulating service source areas occur in eastern provinces. Our analysis illuminates a strategy for greatly strengthening PAs, through creating the first comprehensive national park system of China. This would encompass both nature reserves, in which human activities are highly restricted, and a new category of PAs for ecosystem services, in which human activities not impacting key services are permitted. This could close the gap in a politically feasible way. We also propose a new category of PAs globally, for sustaining the provision of ecosystems services and achieving sustainable development goals.

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PNAS
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