This paper seeks to better understand the persistent environmental problems in urbanizing economies. We examine the effectiveness of environmental policy in an economy with agglomeration economies and endogenous firm relocation and entry/exit. We show that, although environmental regulation is...

Severe air quality hurts human capital, posing threats to innovative outcomes. Using unique data containing 12.8 million patent applications and associated citations in China, this paper examines the causal impact of the concentrations of particulate matter with a diameter of 2.5 μm or less...