Climate Change Economics
Our analyses span research on the impacts of climate change on economic activity and human development in middle- and low-income countries, as well as evaluations of the effects of mitigation policies on social well-being.
Gu, Xuesong and Qian, Yuhao (2020): "Financial Agglomeration and Carbon Emissions: Theoretical Analysis and Empirical Evidence from China." DRF Working Paper 1, August 2020
Abstract- This paper establishes a theoretical model to reveal how financial agglomeration influences carbon emission, considering the influence of three driving factors to carbon emission, i.e. urbanization, economic growth and technological progress. Empirically, it quantifies the hypothesis proposed by the theoretical analysis using China’s provincial panel data during the year 2005-2016. Our empirical results show that financial agglomeration promotes carbon emissions, but the positive correlation is mitigated by urbanisation, economic growth and technological progress. In addition, as the data of 29 provinces in China are grouped into three regions, it is found that East China generates more carbon emissions as becoming increasingly urbanized and no long-term equilibrium relationship exists between carbon emissions and explanatory variables in West China. These findings can help policymakers in China and other developing countries regulate the development of the financial industry, especially, regarding its agglomeration in response to the aggravating greenhouse gas effects in the globe.