Data and Code for: The Size Distribution of Firms and Industrial Water Pollution: A Quantitative Analysis of China

Principal Investigator(s): View help for Principal Investigator(s) Ji Qi, Chinese Academy for Environmental Planning; Xin Tang, Center for Economic Development and Research, Economics and Management School, Wuhan University, and International Monetary Fund; Xican Xi, China Center for Economic Studies, School of Economics, Fudan University, and Shanghai Institute of International Finance and Economics

Version: View help for Version V5

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Empirical			01/20/2020 12:32:PM
Quantitative			11/15/2019 04:13:PM
README.pdf	application/pdf	325 KB	01/20/2020 02:22:PM

Project Citation:

Qi, Ji, Tang, Xin, and Xi, Xican. Data and Code for: The Size Distribution of Firms and Industrial Water Pollution: A Quantitative Analysis of China. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-01-20. https://doi.org/10.3886/E112005V5

Project Description

Summary: We argue that misallocation across firms amplifies industrial water pollution by distorting the firm size distribution in China. Firm-level data indicate that larger firms are more likely to use clean technology but face higher distortions. In a heterogeneous firms model with an endogenous choice of pollution treatment technologies, we show that distortions that increase with firm-level TFP lower the adoption of clean technology, amplify aggregate pollution intensity, and lower aggregate output. Quantitatively, eliminating these correlated distortions would increase output by 30% and decrease pollution by 20%. Meanwhile, environmental regulations have sizable impact on pollution but limited effects on aggregate output.

Funding Sources: National Key R&D Program of China (2016YFC0207604); Key Grant of Ministry of Education of China (16JJD790045)

Scope of Project

Subject Terms: Firm Size Distribution; Correlated Distortions; Industrial Water Pollution

JEL Classification:
      E23 Production
      L11 Production, Pricing, and Market Structure • Size Distribution of Firms
      O44 Environment and Growth
      Q52 Pollution Control Adoption and Costs • Distributional Effects • Employment Effects
      Q53 Air Pollution • Water Pollution • Noise • Hazardous Waste • Solid Waste • Recycling
      Q56 Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth

Geographic Coverage: China

Time Period(s): 1/1/2007 – 12/31/2007 (National General Survey of Pollution Sources); 1/1/2004 – 12/31/2004 (China National Economic Census and Statistics of U.S. Businesses)

Collection Date(s): 1/1/2007 – 12/31/2007 (National General Survey of Pollution Sources); 1/1/2004 – 12/31/2004 (China National Economic Census)

Universe: The National General Survey of Pollution Sources consists all of the pollution units from the agricultural, industrial, and domestic sources, as well as facilities for centralized treatment of pollution. In this study, we focus on the industrial pollution sources, which consist of businesses generating pollutants from the 39 manufacturing industries.

The China National Economic Census was designed to cover all businesses that undertake economic activities in the secondary and tertiary industries in China. We use observations that belong to the manufacturing sector.

The Statistics of U.S. Businesses from the U.S. Census Bureau, is an annual series that provides national and subnational data on the distribution of economic activities by firm size and industry. We use the data on total employment by firm size and industry from 2004.

Main text Section I.A and Appendix A.1 provide further details.

Data Type(s): aggregate data; census/enumeration data; program source code

Methodology

Response Rate: Both data are national census. All firms belonging to the census scope are required to respond by law.

Sampling: The two census are designed to contain all the relevant firms.

Data Source: NGSPS: Ministry of Ecology and Environment of China
CNEC: Fudan University
SUSB: Census Bureau

Collection Mode(s): coded on-site observation

Scales: Number of employees is counted by integer. All economic variables are measured in 2004 CNY (CNEC) and 2007 CNY (NGSPS). The emissions data are measured in metric ton.

Weights: No weighting is involved.

Unit(s) of Observation: Firm

Geographic Unit: Mainland China

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V5 [2020-01-20]

V4 [2019-11-20]

V3 [2019-11-19]

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