This study exploits the correlation between Yellow River flooding and human capital accumulation using county-level data from Anhui, Hebei, Henan, Jiangsu, and Shandong provinces in China. Employing a spatial regression discontinuity approach, we compare the differences in human capital accumulation within and beyond the Yellow River floodplain areas (YRFA). Empirical results show human capital accumulation in the YRFA is at least 12.1 percent lower than outside the YRFA. Furthermore, our results demonstrate intergenerational transmission and gender differences in the negative impact of the Yellow River flooding on human capital accumulation. The baseline specifications of this study are not affected by drought and overall natural disasters. This paper documents historical human capital accumulation, clan power, and social trust, through which Yellow River flooding has a long-term impact.

The Black Sea is an enclosed sea surrounded by six coastal countries, of which Bulgaria and Romania are EU Member States. The Convention for the Protection of the Black Sea Against Pollution was ratified in 1994 by all coastal countries. This Convention is the only European regional sea convention to which the EU is not a Party. While Romania and Bulgaria are in favor of EU accession to the Convention, Turkey, Russia and Ukraine thus far have blocked accession. In this paper, we develop a negotiation model with endogenous enforcement and exogenous fraud to analyze the different positions of groups of coastal countries relative to EU accession to the Convention. Our model contributes to defining a proposal that the EU could make to the opposing states such that they accept the EU as a Party to the Convention. In that context we investigate also whether Romania and Bulgaria might be better off delegating their decision power to the EU, rather than retaining their individual voting rights.

This study analyzed the impact of environmental regulation, specifically the “2+26” regional strategy for air quality improvement, on corporate research and development (R&D) investment in China. We developed a theoretical model based on the argument that R&D investment rises with regulation intensity. Using 2010–2019 data from China's listed companies located in the Beijing-Tianjin-Hebei region and its surrounding areas, we treated the $2+26$ policy as a quasi-natural experiment and adopted a difference-in-differences approach to explore its effect on firm R&D input. A positive association was observed between firm R&D intensity and the $2+26$ strategy's implementation in major polluting industries. Our results provide in-depth insights into the $2+26$ strategy's economic consequences, which are potentially of interest to both scholars and policymakers.

This paper examines a causal relationship between foreign direct investment (FDI) and firms' pollution intensity by exploiting the policy of China's FDI access relaxation in 2002. The result shows that FDI leads to a significant reduction in firms' pollution intensity. The mechanism tests find that FDI reduces pollution intensity by increasing firms' productivity, pollution management abilities, and the output of lightly polluting firms. The effect primarily acts on firms in lightly polluting industries and firms in the eastern region. The findings support the pollution halo hypothesis and provide implications for developing countries like China by evaluating the effectiveness of policies to attract FDI.