IDEAS home Printed from https://ideas.repec.org/a/bla/jecsur/v38y2024i5p1846-1872.html
   My bibliography  Save this article

Water rights trading and corporate productivity: Evidence from a quasi‐natural experiment of China's pilot policy

Author

Listed:
  • Duan Liu
  • Nizhou Yu
  • Hong Wan
  • Jinghua Ou
  • Shujie Yao
  • Qiuhong Wang

Abstract

The economic consequences of water efficiency that results from water policies remains controversial. Studies on how water rights trading (WRT), which allocates water resources in and across industries, influences corporate efficiency can reveal the behavioral response of market participants to increase water efficiency. Considering the WRT pilot implemented in 2014 as a quasi‐natural experiment, we adopt the difference‐in‐difference‐in‐differences method to evaluate its impact on corporate total factor productivity (TFP). Our findings show that WRT significantly stimulates the TFP of firms with high water costs. This effect is achieved by promoting water‐related green innovation and optimizing resource allocation instead of alleviating corporate risks. Furthermore, the impact of WRT is more pronounced in areas with lower levels of water endowment and market development. The research findings have strikingly important policy implications regarding water management in China through WRT.

Suggested Citation

  • Duan Liu & Nizhou Yu & Hong Wan & Jinghua Ou & Shujie Yao & Qiuhong Wang, 2024. "Water rights trading and corporate productivity: Evidence from a quasi‐natural experiment of China's pilot policy," Journal of Economic Surveys, Wiley Blackwell, vol. 38(5), pages 1846-1872, December.
    • Handle: RePEc:bla:jecsur:v:38:y:2024:i:5:p:1846-1872
    DOI: 10.1111/joes.12646
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joes.12646
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joes.12646?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecsur:v:38:y:2024:i:5:p:1846-1872. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.