Abstract
Societal functioning necessitates 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 study, drawing on clan networks within China, investigates the influence of informal institutions on county-level carbon emissions. Utilizing the historical number of Confucian temples as an instrument, 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.
- institutional economics
- environmental governance
- female politician
- social cost of carbon
- elite capture
- regulatory capture
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