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Towards a system of open cities in China: Home prices, FDI flows and air quality in 35 major cities

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  • Zheng, Siqi
  • Kahn, Matthew E.
  • Liu, Hongyu

Abstract

Over the last 30Â years, China's major cities have experienced significant income and population growth. Much of this growth has been fueled by urban production spurred by world demand. Using a unique cross-city panel data set, we test several hypotheses concerning the relationship between home prices, wages, foreign direct investment and ambient air pollution across major Chinese cities. Home prices are lower in cities with higher ambient pollution levels, and the marginal valuation for green amenities is rising over time. Cities featuring higher per-capita FDI flows have lower pollution levels. These findings may indicate that major Chinese cities are making the transition from "producer cities" to "consumer cities", which raises the prospects of sustainable economic development in China.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 40 (2010)
Issue (Month): 1 (January)
Pages: 1-10

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Handle: RePEc:eee:regeco:v:40:y:2010:i:1:p:1-10

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Keywords: China Urban growth FDI Air pollution Quality of life;

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. China's Future Green Cities
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-12-02 16:10:00
  2. China Goes Green?
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-04-02 02:20:00
  3. The Income Elasticity of Demand for a High Quality Toliet
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-10-02 16:21:00
  4. Is Urban Air Pollution in China Rising?
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-07-29 15:18:00
  5. If Beijing and Shanghai Are Too Expensive for Young Men to Buy Homes then New Cities will Thrive --- Phoenix Revisited
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-06-22 03:45:00
  6. The Overeducated Chinese Young Person?
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-03-08 21:29:00
  7. Urbanization and Economic Development
    by Matthew E. Kahn in Environmental and Urban Economics on 2012-06-10 22:13:00
  8. “Green People Power” in China
    by Matthew E. Kahn in The Reality-Based Community on 2012-10-28 22:09:57
  9. My Harvard Business Review Blog Piece on China's Bullet Trains and a History of My Economic Thought About China
    by Matthew Kahn in Environmental and Urban Economics on 2013-04-08 15:50:00
  10. Exploring Green Cities in China
    by Matthew Kahn in Urbanization Project on 2013-04-09 23:17:09
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Siqi Zheng & Jing Cao & Matthew E. Kahn, 2011. "China's Rising Demand for "Green Cities": Evidence from Cross-City Real Estate Price Hedonics," NBER Working Papers 16992, National Bureau of Economic Research, Inc.

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