After the Deluge: Economic and Environmental Consequences of Floods in China

Speaker:  Zhiren Hu, IvyPlus Graduate Student, Economics for Sustainability and Energy Transition Research Program, Stanford University

Natural disasters can intensify the tension between economic growth and environmental protection by changing how governments enforce regulations. Using satellite-based measures of flooding and air pollution in China, we find that floods increase annual PM2.5 concentrations by approximately 0.35% on average. Pollution rises following both minor and severe floods, although only severe floods cause substantial economic losses. The effect is stronger in manufacturing-intensive areas and localities with more ambitious growth targets, but weakens after environmental accountability is strengthened. Firm-level evidence shows that the increase is concentrated among large firms and driven by higher emission intensity. We also find suggestive evidence that flood-exposed firms face weaker environmental enforcement.

About the Student Seminar Series

Our Student Seminar Series offers emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each seminar features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Student Seminars are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Student Seminar Series webpage for more information on the content and format of the series and to learn how to sign up to present.