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A Legacy Through Millennia: Do Informal Institutions Matter for Climate Change?

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  • Jianxian Wu

Abstract

Societal functioning needs both formal and informal institutions. However, the existing body of literature predominantly emphasizes the influence of formal institutions on climate change, often neglecting the role of informal mechanisms. This article draws on clan networks in China to investigate the influence of informal institutions on county-level carbon emissions. Using the historical number of Confucian temples as an instrumental variable, the findings suggest that informal institutions contribute to an unexpected increase in carbon emissions. This effect is attributed to corruption and deficiencies in environmental enforcement. Gender diversity among local leadership mitigates the adverse effects associated with informal institutions.

Suggested Citation

  • Jianxian Wu, 2026. "A Legacy Through Millennia: Do Informal Institutions Matter for Climate Change?," Land Economics, University of Wisconsin Press, vol. 102(2), pages 236-254.
    • Handle: RePEc:uwp:landec:v:102:y:2026:i:2:p:236-254
    Note: DOI: https://doi.org/10.3368/le.102.2.110824-0106R
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    More about this item

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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