The Fallacy of Sustainability: Evidence From Yangtze River Fishing Ban

Abstract

This study examines the impact of a sustainability policy, the 2015 Chinese ban on fishing in the Yangtze River, on economic outcomes. Utilizing Chinese county-level data and the DID approach, results reveal that the policy has a negative consequence, reducing growth in the agricultural sector by 3% in counties located within prefecture-level cities adjacent to the Yangtze River. Notably, the largest adverse effects is found in the central Yangtze River Basin, compared to the western and eastern regions. The findings remain robust across a variety of econometric specifications. However, results show that the extended fishing ban does not induce significant job losses or income reductions, suggesting that the policy facilitated a shift from traditional fishing to other sectors, thereby reducing income volatility for workers within the agricultural industry.