Abstract: We study a massive urban afforestation policy in Beijing that planted 1/3 of a million acres of greenery in less than a decade. The policy reduces PM₂.₅ concentration at population hubs by 4.2 percent, the health value of which amounts to 1.5% of the city’s annual GDP. Rapid vegetation growth unexpectedly led to a 7.4 percent increase in pollen exposure, triggering respiratory emergency room visits, although the medical costs are outweighed by the pollution benefits. Urban forests are only partially capitalized in housing values, with buyers mainly appreciating proximity to green spaces but not the air quality improvements they bring.

Abstract: This paper estimates the effect of the closure and relocation of chemical enterprises along the Yangtze River on housing prices in China. With a difference-in-differences (DiD) model and detailed data on polluting enterprises, house transactions, and environmental complaints, we find that environmental regulation led to a 1.7% increase in housing prices and a 43.3% reduction in perceived environmental risks, as measured by environmental complaints from surrounding residents. In addition, we observe a greater change in property values among taller buildings than among shorter buildings. This paper elucidates how developing countries can benefit from environmental regulation by influencing residents’ risk perceptions.

Abstract: We identify and quantify the effect of the access to Fintech consumer credit service on consumption following a shock. Using data from the leading digital payment platform in China, we find that accessing Fintech credit services resulted in a 21.99% higher monthly consumption in the two-year period after the COVID-19 shock. The effect is stronger in a shorter period, with 28.71% in a half-year period. Variations in the durations of lockdowns show a stronger effect in the regions that experienced more severe shocks. We then provide two channels to explain the effect. One is the income channel; consumers with lower income or from less developed areas benefit more from Fintech access. The other channel is financial literacy. Using proxies including education level and the financial sophistication index we construct, we find that the value of fintech credit access is higher for those lacking financial literacy.