The dilemma of public information disclosures

Xiangyu Shi, Jiaowei Gong, Xin Zhang and Chang Wang

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we document a novel fact that disclosures of public information reshape social dynamics in China. Using the staggered roll-out of a quasi-natural experiment of air pollution information disclosure and a novel high-frequency data set of social and public events, we find socioeconomic cooperation and protests both significantly decrease after disclosure. The negative effects are larger when the disclosed pollution level is higher and when residents have higher environmental awareness and lower trust in local governments. Our results are rationalized in a theoretical model and suggest that information disclosure involves a tradeoff between economic efficiency and political stability and leads to a dilemma for policymakers.

Keywords: Air pollution; Information; Social dynamics; Public events; Socioeconomic cooperation; Protests; China (search for similar items in EconPapers)
JEL-codes: D7 D9 O1 Q5 (search for similar items in EconPapers)
Date: 2024-06
New Economics Papers: this item is included in nep-cna, nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121357

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