Wednesday, May 28, 2025

NOT SO GREEN MINERALS

Nickel rush for stainless steel, EVs guts Indonesia tribe’s forest home

By AFP
May 27, 2025


The lush jungle of Halmahera Island in Indonesia has been eaten away by the world's largest nickel mine - Copyright AFP STR


LONG READ

Jack Moore and Bagus Saragih

Sitting deep in east Indonesia’s lush jungle, Bokum, one of the country’s last isolated hunter-gatherers, has a simple message for the nickel miners threatening his home: “This is our land.”

He belongs to the Hongana Manyawa Indigenous tribe, which includes around 3,000 “contacted” members like him, and another 500 who reject contact with the modern world.

Their home on Halmahera Island was once a breathtaking kaleidoscope of nature that provided sanctuary and sustenance.

But it is being eaten away by the world’s largest nickel mine, as Indonesia exploits vast reserves of the metal used in everything from electric vehicles to stainless steel.

“I’m worried if they keep destroying the forest,” Bokum told AFP in a clearing in central Halmahera.

“We have no idea how to survive without our home and food.”

The plight of the Hongana Manyawa, or “People of the Forest”, started gaining attention in Indonesia last year after a video widely shared on Facebook showed emaciated, uncontacted members emerging from their rapidly changing forest home to beg for food.

But the remote region — about 1,500 miles (2,414 kilometres) from capital Jakarta — mostly remains far from the public consciousness.

AFP travelled into the Halmahera jungle to see how the sprawling Weda Bay Nickel concession has affected the once-pristine tribal lands that the Hongana Manyawa call home.

During a three-day, 36-kilometre (22-mile) trek across parts of the 45,000-hectare concession, the mining operation’s impacts were starkly clear.

Booms from controlled explosions to expose nickel shook birds from trees, while helicopters buzzing overhead shared the skies with green parrots, Moluccan owls, hornbills and giant bees.

Tree stumps provided evidence of logging, and off-duty mine guards were seen hunting tropical birds with air guns.

Throughout the night, the sound of excavators scratching the topsoil penetrated the thick vegetation, competing with frog calls and the drone of insects.

Mud that locals say is stirred up by mining has stained rivers copper, and the water leaves skin irritated.

In 22 river crossings, only a few fish were visible. Tribe members say they have mostly disappeared.

AFP did not seek to meet uncontacted Hongana Manyawa.

Bokum emerged from isolation earlier in his life, but still has very limited contact with the outside world.

He and his wife Nawate agreed to meet AFP around 45 minutes from his home deeper in the jungle.

But he could not stay long: en route, he spotted miners and wanted to return to ward them off.

“The company workers have been trying to map our territory,” he told AFP, wearing a black cowboy hat, shirt and rolled-up jeans.

“It’s our home and we will not give it to them.”



– ‘Prevent their annihilation’ –



Indonesia’s constitution enshrines Indigenous land rights, and a 2013 Constitutional Court ruling promised to give local communities greater control of their customary forests.

But environmental groups say the law is not well enforced.

With no land titles, the Hongana Manyawa have little chance of asserting their claims to stewardship of forest that overlaps with Weda Bay’s concession.

According to Weda Bay Nickel (WBN), its mine on Indonesia’s Maluku islands accounted for 17 percent of global nickel production in 2023, making it the largest in the world.

WBN is a joint venture of Indonesia’s Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.

WBN told AFP it is “committed to responsible mining and protecting the environment”, and trains employees to “respect local customs and traditions”.

It said there is “no evidence that uncontacted or isolated groups are being impacted by WBN’s operations”.

Eramet told AFP it has requested permission from WBN’s majority shareholders for an independent review of “engagement protocols” with Hongana Manyawa, expected this year.

Further review of how the tribe uses the area’s forests and rivers is also underway, it added, though it said there was currently “no evidence” of members living in isolation in its concession.

The Indonesian government, which acknowledges most of the concession was previously protected forest, told AFP otherwise.

There is “recognition of evidence of the existence of isolated tribes around Weda Bay”, said the directorate general of coal and minerals at Indonesia’s energy ministry.

It said it was committed to “protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment”.

Indigenous rights NGO Survival International said that was Jakarta’s first acknowledgement of uncontacted, or “isolated”, Hongana Manyawa in the area.

It called the admission a “hammer blow” to Eramet’s claims and said a no-go area to protect the tribe was “the only way to prevent their annihilation”.

Both WBN and Eramet said they work to minimise impact on the environment. Eramet’s new CEO will be in Indonesia this week, seeking permission to expand the mine’s capacity.

Tsingshan and Antam did not respond to AFP requests for comment.

Bokum said mining has driven away the wild pigs, deer and fish he once caught for food. Now, he looks for shrimp and frogs in less-affected smaller streams.

“Since the company destroyed our home, our forest, we’ve been struggling to hunt, to find clean water,” he said in the Indigenous Tobelo language.

“If they keep destroying our forest we cannot drink clean water again.”



– ‘Go away’ –



Nickel is central to Indonesia’s growth strategy. It banned ore exports in 2020 to capture more of the value chain.

The country is both the world’s largest producer, and home to the biggest-known reserves.

Mining — dominated by coal and nickel — represented nearly nine percent of its GDP in the first quarter of 2025, government data shows.

Nickel mined in the Halmahera concession is processed at the Weda Bay Industrial Park.

Since operations began in 2019, the area has transformed rapidly, into what some call a “Wild West”.

At a checkpoint near the industrial park, men stopped AFP to demand cash and forced their vehicle to move elsewhere, before a local government official intervened.

The towns on the mine edge — Lelilef Sawai, Gemaf and Sagea — form a chaotic frontier.

Employees in hard hats crisscross muddy roads that back up with rush-hour traffic.

Shops catering to labourers line the roadside, along with prostitutes looking for business in front of bed bug-infested hostels.

The mining workforce has more than doubled since 2020 to nearly 30,000 people.

Locals say these are mostly outsiders whose arrival has sparked tensions and coincided with rising cases of respiratory illness and HIV/AIDS.

Smelter towers belch a manmade cloud visible from kilometres away.

“Mining companies have not implemented good practices, have violated human rights and there is rarely any evaluation,” said Adlun Fiqri, spokesman for the Save Sagea campaign group.

Inside the jungle, a similar story is playing out, said Hongana Manyawa member Ngigoro, who emerged from the uncontacted as a child.

“Long before the mining, it was really quiet and good to live in the forest,” said the 62-year-old, as he marked his route by slicing pock-marks into trees with his machete.

He remains at ease in the forest, using reeds for shade and bamboo shoots to boil water.

“There was no destruction. They were not afraid of anything,” he said.

He climbed nimbly down a steep slope by clinging to tree roots before crossing a riverbed peppered with garnierite — green nickel ore.

“This land belongs to the Hongana Manyawa,” he said.

“They existed living in the rainforest before even the state existed. So go away.”

That sentiment echoes elsewhere on Halmahera.

At least 11 Indigenous people were recently arrested for protesting mining activity in the island’s east, Amnesty International said Monday.



– ‘We will not give our consent’ –



Despite their “contacted” status, Bokum and Nawate have rarely met outsiders.

They approached haltingly, with Nawate refusing to speak at all, instead surveying her visitors with a cautious smile.

Bokum described moving at least six times to outrun encroaching miners.

NGOs fear the mine operation risks wiping out the tribe.

“They rely entirely on what nature provides for them to survive and as their rainforest is being devastated so too are they,” said Callum Russell, Asia research and advocacy officer at Survival International.

“Any contact with workers in the forest runs the risk of exposing them to deadly diseases to which they have little to no immunity.”

The government told AFP it has “conducted documentation” to understand isolated tribes near Weda Bay, and involved them “in the decision-making process”.

Activists say this is impossible given most of the group do not use modern technology and limit contact with outsiders.

Amid growing scrutiny, there have been rumblings of support for the tribe, including from some senior politicians.

Tesla, which has signed deals to invest in Indonesian nickel, has mooted no-go zones to protect Indigenous peoples.

And Swedish EV company Polestar last year said it would seek to avoid compromising “uncontacted tribes” in its supply chain.

For Bokum however, the problem is already on his doorstep.

A 2.5-kilometre-long (1.5 miles) open pit lies just over the hill from a plot where he grows pineapple and cassava.

Bokum and Nawate received mobile phones from mine workers — in an unsuccessful attempt to convince them to approve mining operations.

They and other tribe members use numerical codes to identify contacts and make calls.

They must approach the concession to pick up signal, but when mine workers near his home, Bokum wields his machete to scare them off.

“This is our land. Our home,” he said.

“We will not give our consent to destroy it.”

Australia approves 40-year extension for contentious gas plant


By  AFP
May 28, 2025


Australian energy company Woodside Woodside is one of the world's largest producers of liquified natural gas - Copyright AFP SAEED KHAN

Australia on Wednesday approved a 40-year extension to a major liquified gas plant, brushing off protests from Pacific island neighbours fearful it will inflame climate damage.

The North West Shelf is a sprawling industrial complex of offshore rigs and processing factories pumping out more than 10 million tonnes of liquified gas and petroleum each year.

Run by resources giant Woodside, it is one of the world’s largest producers of liquified natural gas — and one of Australia’s biggest polluters.

Originally slated to close in five years’ time, Environment Minister Murray Watt on Wednesday approved an extension to keep it running until 2070.

In a statement, Watt said he approved the extension “subject to strict conditions” designed to limit the impact of emissions.

Neighbouring Pacific islands, already seeing their coastlines eaten away by rising seas, had urged Australia to shut down the plant.

“Pacific leaders have made it clear — there is no future for our nations if fossil fuel expansion continues,” said Tuvalu Climate Change Minister Maina Talia.

“The North West Shelf extension would lock in emissions until 2070, threatening our survival and violating the spirit of the Pacific-Australia climate partnership,” he said ahead of this week’s decision.

Australia insists that extending the plant — which each year emits millions of tonnes of greenhouse gas — does not tarnish a pledge to reach net zero by 2050.

But it poses an awkward diplomatic problem as Australia seeks to host next year’s UN climate conference alongside Pacific island nations.

Prime Minister Anthony Albanese said liquified natural gas — a fossil fuel — would bridge the gap while more renewables were plugged into Australia’s power grid.

“You can’t have renewables unless you have firming capacity. It’s as simple as that,” he said this week.

“You don’t change a transition through warm thoughts.”

The Woodside plant straddles Western Australia’s Burrup Peninsula, a region home to some of the country’s best-preserved Aboriginal rock art.



– Spewing ‘toxins’ –



A monitoring program is still trying to determine if industrial air pollution was degrading the engravings, some of which are thought to be 40,000 years old.

Watt said “adequate protection for the rock art” was central to his decision.

Aboriginal leaders have tried in vain to stop the extension.

“The toxins that spew out, we see this on a daily basis,” Raelene Cooper said ahead of the government’s decision.

“No one had a say when all this happened. Government never come to us. Woodside never come to us.”

The project consistently ranks among Australia’s five largest emitters of greenhouse gas, according to figures from the country’s Clean Energy Regulator.

Greenhouse gases such as carbon dioxide and methane trap heat as they collect in the atmosphere, fuelling climate change.
OUTLAW DEEP SEAN MINING

Trump’s drive for ocean bed mining threatens law of the sea


By AFP
May 28, 2025


Scientists have warned that rising ocean temperatures are impacting whales' body clock and migration cycles, as well as killing off krill, the tiny crustacians they need to fatten up for a journey of thousands of kilometers - Copyright AFP

 Yasuyoshi CHIBA

Amélie BOTTOLLIER-DEPOIS

US President Donald Trump’s move to sidestep global regulations and begin pushing for seabed mining in international waters could pose a wider threat of competing countries claiming sovereignty over the ocean, experts say.

Trump last month signed an executive order to accelerate the permit-granting process for deep-sea mining in domestic and international waters, citing an obscure 1980 US law.

And the Canadian deep-sea mining frontrunner The Metals Company has already filed an application in the United States to conduct commercial mining on the high seas — bypassing the International Seabed Authority (ISA). This is the body entrusted by a United Nations convention with managing the ocean floor outside of national jurisdictions.

Ocean law is largely guided by that accord — the United Nations Convention on the Law of the Sea (UNCLOS), first signed in 1982 to prevent “a competitive scramble for sovereign rights over the land underlying the world’s seas and oceans,” according to Maltese diplomat Arvid Pardo, the convention’s forebearer.

The United States never ratified the convention, which took effect in 1994, though it has applied many of its clauses.

Coalter Lathrop, an attorney at the US law firm Sovereign Geographic, told AFP that the United States is “a huge beneficiary of the parallel set of customary international law rules” despite not being a party to UNCLOS.

For instance, the United States has one of the largest Exclusive Economic Zones (EEZ) which gives states sovereignty over maritime areas up to 200 nautical miles (370 kilometers) from their coastline — protecting them from foreign fishing boats, among other extractive industries.



US President Donald Trump signed an executive order in April to expand permitting for deep-sea mining in both domestic and international waters using an obscure 1980 US law – Copyright AFP TOMAS CUESTA

If the US enjoys the benefits of ocean law, Lathrop argues, “but then you disregard the other part of the package deal — that the seabed and its minerals in areas beyond national jurisdiction are the common heritage of humankind — that is going to be destabilizing, to say the least, for the general legal order of the oceans.”

“US unilateral permitting could lead to the disintegration of a system that has been carefully curated and created by the United States, largely for its own benefit,” he added.

– ‘Unraveled’ –

The US and Canadian moves sparked an international outcry from ISA member states, including China, whose foreign ministry spokesman warned it violates international law.

ISA secretary general Leticia Carvalho expressed similar concern, saying that “any unilateral action… sets a dangerous precedent that could destabilize the entire system of global ocean governance.”

The Metals Company does maintain contracts with ISA members like Japan — where it has a partnership with smelting company Pamco. And experts note such ISA member states could invoke their obligation to UNCLOS to enforce maritime law on The Metals Company via these proxies, even if it ultimately receives a permit from the Trump administration.

Guy Standing, an economist at the University of London, told AFP: “It’s the most dangerous thing he’s done so far,” referring to Trump.

If marine laws “were to come sort of unraveled,” Standing said, “you could have a carve up in different parts of the world, with Russia, China and America carving up the Arctic.”

However, not all scholars in the field are in agreement.

James Kraska, a professor of international maritime law at US Naval War College, said “it’s naive to think the United States has that kind of influence.”

“I just disagree with the people that are saying that it’s somehow a legal obligation to comply with a treaty that you never joined,” he told AFP.

“I just can’t see any way that it’s unlawful. I understand that there’s sort of political opposition to it, but I would just distinguish between politics and the law.”
Medical crisis: How US states differ in how well their local health sector functions


By Dr. Tim Sandle
DIGITAL JOURNAL
May 27, 2025


A nurse prepares the Pfizer Covid-19 vaccine at a public housing project pop-up site targeting vulnerable communities in Los Angeles. — Photo: © AFP

A recent study by a firm called Masumi analysed all U.S. states across key healthcare metrics to identify the states that are most prepared for medical emergencies. In order to evaluate healthcare systems, the research compared states by hospital availability, medical workforce, and emergency response efficiency. The data from the American Hospital Directory KFF was used to calculate a final preparedness score, ranking states for emergency readiness.

This established that South Dakota leads the list of the U.S. states most prepared for medical emergencies, with the shortest ER waiting time and most hospitals for the state’s population.

The findings showed:

StateHospitals Per 100KHospital Beds Per 100KDoctors Per 100KNurses Per 100KComposite Score
Idaho0.9131.7186.3817.9100.0
Washington0.7131.4301.3812.097.9
Utah1.0135.4241.6794.695.4
Arizona1.1180.0259.5859.289.5
Nevada1.0183.5200.8831.887.5
Maryland0.8162.4435.51,014.083.5
Colorado1.0144.9282.9827.578.6
California0.8187.5310.0838.477.0
Oregon0.8149.1313.91,036.376.4
Texas1.2190.0232.8790.675.6
The U.S. state most prepared for medical emergencies is South Dakota, with a preparedness score of 100, reflecting a sufficient number of hospitals and available medical workforce. The state has the most nurses and most hospitals per 100K residents, with 2.5 hospitals available. South Dakota also has the shortest ER waiting time at 113 minutes on average.

Louisiana ranks second on the list of the states most prepared for medical emergencies, scoring 97.9. There are 299.4 available hospital beds per 100K residents in the state, more than in South Dakota, and the state leads in available doctors, with 302.5 specialists per 100K.

Mississippi holds third place, getting a preparedness score of 95.4. The state leads in available space for new patients, with 304.7 hospital beds per 100K people, the highest number in the ranking. The rate of available doctors and nurses is a little lower than in South Dakota and Louisiana.

West Virginia takes fourth place with a score of 89.5. There are 2 hospitals per 100K residents in the state and 328.6 doctors for the same population. West Virginia follows Mississippi closely when it comes to available hospital space, at 303.2 beds per 100K.

Ohio is fifth in the ranking of the U.S. states most prepared for medical emergencies, with a preparedness score of 87.5. The state has more available doctors than West Virginia or Mississippi, but overall, there are fewer hospitals for patients at 1.2 per 100K.

Massachusetts ranks sixth, scoring 83.5. There is 1 hospital per 100K residents in the state but Massachusetts has the most doctors for its population, amounting to 511.3 per 100K, over 200 more than in South Dakota or Louisiana.

Missouri holds the seventh position, getting a preparedness score of 78.6. There is an extensive medical workforce in the state, with 356.6 doctors and 1,057.5 nurses for every 100K residents. Similar to Ohio, the average ER waiting time in Missouri is 144 minutes.

Kentucky follows closely with eighth place and a score of 77. There are more available medical facilities here than in Missouri or Massachusetts, with 1.6 hospitals per 100K residents, and the state offers enough space for the patients, amounting to 272.4 hospital beds for every 100K.

Pennsylvania is ninth, earning a score of 76.4. The state has one of the biggest medical workforces in the top 10, providing 1,126 nurses and 412 doctors for every 100K residents. Pennsylvania also has the most hospitals overall in the top 10, with 178.

Kansas closes the ranking of the U.S. states most prepared for medical emergencies, getting tenth place and a score of 75.6. Compared to other states, Kansas has a short ER waiting time of 117 minutes and enough medical facilities, with 1.9 hospitals per 100K residents.

 

New study reveals: Contingent responsive parenting can shape the brains of sensitive babies and support emotional regulation




Reichman University
Dr. Tahli Frenkel, 

image: 

Dr. Tahli Frenkel, Baruch Ivcher School of Psychology, Reichman University

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Credit: Gilad Kavalerchik





Sensitive parental interactions during the first year of life may directly affect the structure of babies' brains and prevent future emotional difficulties, according to a new study conducted by Dr. Tahli Frenkel of the Baruch Ivcher School of Psychology at Reichman University, in collaboration with the University of California, Davis.

 

 

Approximately 20% of babies are born with a turbulent and unregulated temperament, characterized by high sensitivity to new stimuli, a tendency to cry excessively, and difficulty calming down once emotionally aroused. Previous studies have identified this temperament as a potential risk factor for challenges in social-emotional development, particularly for the emergence of anxiety disorders. The current study found that contingent responsive parenting — that is, consistently and accurately responding to the baby’s cues and rhythms — can shape patterns of brain activity in ways that strengthen the child’s capacity for emotional regulation and reduce the likelihood of developing emotional difficulties later in life.

 

In the study, the researchers followed 51 mother-infant pairs over the course of the babies’ first year. At four months of age, observations were conducted to assess the infants’ temperament and to evaluate the degree of contingent responsiveness in the mothers’ interactions —how accurately and sensitively they responded to their babies' cues. At one year of age, the researchers measured the infants’ brain activity using EEG and examined their reactions to fear and to witnessing others in pain.

 

The findings show that early parenting influences the baby’s brain activity, which in turn supports their emotional and social behavior. Infants with turbulent temperaments who did not experience parental contingent responsiveness developed a pattern of brain activity associated with emotional regulation difficulties, and showed heightened fear in unfamiliar situations and less prosocial behavior. In contrast, babies with similar temperaments who received contingent responsive parenting did not develop the brain activity associated with emotional difficulties. Instead, their brain activity supported more adaptive behavior: they responded more calmly to fearful situations and even demonstrated the beginnings of empathy and prosocial behavior in response to the pain of others.

Dr. Tahli Frenkel, Baruch Ivcher School of Psychology, Reichman University: “These findings highlight the critical role of early parenting as a protective factor, especially for infants with more reactive or sensitive temperaments. Such temperaments can be very difficult for both the baby and the parents. The study’s findings are encouraging, as they indicate that challenging temperaments can be shaped with the help of an responsive caregiving environment. Babies with more intense temperaments need an environment that helps them regulate their emotions. When parents are attuned to the baby’s rhythm, and especially to signals indicating whether the baby is ready to tolerate new stimuli from the environment, they support the development of emotional regulation and build resilience that will help the child cope with the challenges posed by his or her innate temperament. Raising awareness among parents, offering them emotional support, and providing them with the knowledge and tools to deal with the natural challenges involved in parenting a baby with a turbulent temperament can have significant and long-term effects on the parenting experience, on the child, and on the parent-child relationship.”

 

The study, published in the prestigious journal Developmental Psychology as part of a special issue in memory of Jerome Kagan, a pioneer in the study of infant temperament, reinforces the importance of early emotional connections in shaping a healthy developmental trajectory. Greater awareness, early detection, and tailored interventions have the potential to make a significant and lasting impact on children’s lives.

 

Bed bugs are most likely the first human pest, new research shows




Virginia Tech

Warren Booth (at left) and Lindsay Miles at one of several refrigerators filled with samples of bed bugs collected from all over the world. 

image: 

Warren Booth (at left) and Lindsay Miles at one of several refrigerators filled with samples of bed bugs collected from all over the world.

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Credit: Photo by Felicia Spencer for Virginia Tech.





Ever since a few enterprising bed bugs hopped off a bat and attached themselves to a Neanderthal walking out of a cave 60,000 years ago, bed bugs have enjoyed a thriving relationship with their human hosts. 

Not so for the unadventurous bed bugs that stayed with the bats — their populations have continued to decline since the Last Glacial Maximum, also known as the ice age, which was about 20,000 years ago.

A team led by two Virginia Tech researchers recently compared the whole genome sequence of these two genetically distinct lineages of bed bugs. Published in Biology Letters on Tuesday, May 28, their findings indicate the human-associated lineage followed a similar demographic pattern as humans and may well be the first true urban pest. 

“We wanted to look at changes in effective population size, which is the number of breeding individuals that are contributing to the next generation, because that can tell you what’s been happening in their past,” said Lindsay Miles, lead author and postdoctoral fellow in the Department of Entomology

According to the researchers, the historical and evolutionary symbiotic relationship between humans and bed bugs will inform models that predict the spread of pests and diseases under urban population expansion.

By directly tying human global expansion to the emergence and evolution of urban pests like bed bugs, researchers may identify the traits that co-evolved in both humans and pests during urban expansion.

A stairway graph (at left) shows that the genome-wide patterns of bed bug demography mirrors global human expansion, courtesy of Biology Letters 21: 20250061. The image of bed bugs is courtesy of Warren Booth.

“Initially with both populations, we saw a general decline that is consistent with the Last Glacial Maximum; the bat-associated lineage never bounced back, and it is still decreasing in size,” said Miles, an affiliate with the Fralin Life Sciences Institute. “The really exciting part is that the human-associated lineage did recover and their effective population increased.”

Miles points to the early establishment of large human settlements that expanded into cities such as Mesopotamia about 12,000 years ago. 

“That makes sense because modern humans moved out of caves about 60,000 years ago,” said Warren Booth, the Joseph R. and Mary W. Wilson Urban Entomology Associate Professor. “There were bed bugs living in the caves with these humans, and when they moved out they took a subset of the population with them so there’s less genetic diversity in that human-associated lineage.”

As humans increased their population size and continued living in communities and cities expanded, the human-associated lineage of the bed bugs saw an exponential growth in their effective population size.

By using the whole genome data, the researchers now have a foundation for further study of this 245,000 year old lineage split. Since the two lineages have genetic differences yet not enough to have evolved into two distinct species, the researchers are interested in focusing on the evolutionary alterations of the human-associated lineage compared with the bat-associated lineage that have taken place more recently. 

“What will be interesting is to look at what’s happening in the last 100 to 120 years,” said Booth. “Bed bugs were pretty common in the old world, but once DDT [dichloro-diphenyl-trichloroethane] was introduced for pest control, populations crashed. They were thought to have been essentially eradicated, but within five years they started reappearing and were resisting the pesticide.”

Booth, Miles, and graduate student Camille Block have already discovered a gene mutation that could contribute to that insecticide resistance in a previous study, and they are looking further into the genomic evolution of the bed bugs and relevance to the pest’s insecticide resistance. 

Booth said the project is a good example of what happens when researchers “follow the science,” which he is afforded the space to do thanks in part to the Joseph R. and Mary W. Wilson endowment that supports his faculty position.

“It’s a great resource to have,” said Booth. “We are using it for work investigating the evolution of insecticide resistance and species spread using museum specimens collected from 120 years ago to our present-day samples. “I’m very lucky to have that freedom to explore.”

Tuesday, May 27, 2025

 

“BroadBand China” policy raises corporate borrowing costs




Shanghai Jiao Tong University Journal Center

Baseline results 

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Columns 1 and 2 present the results using COD1 to measure firms’ borrowing costs, whereas Columns 3 and 4 show estimated results using COD2 to gauge the cost of debt. As reported, the estimators of Broadband are significantly positive in Columns 1 and 2, with significance at 1% levels, denoting that digital infrastructure leads to increased corporate borrowing costs. In addition, the estimators of Broadband are still significant and positive when we exploit COD2 to measure firms’ borrowing costs. Moreover, the magnitudes of the estimators on Broadband are also economically sizable. To be specific, digital infrastructure results in a 7.8% (9.17%) increase in firms’ borrowing costs measured by COD1 (COD2). Accordingly, our baseline result implies that digital infrastructure is statistically and economically significant and is positively related to firms’ borrowing costs, which supports that digital infrastructure is positively related to firms’ borrowing costs.

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Credit: Yan Jiang (Shanghai University of Finance and Economics, China) Dayong Lv (Shanghai Lixin University of Accounting and Finance, China) Suyu Hao (Tongji University, China) Xiaokun Wei (Tongji University, China) Youyi Wu (The University of Chicago, Chicago, USA)





Background and Motivation

As broadband internet becomes essential to socioeconomic development, digital technology alters how companies operate and manage their financing. However, existing research mainly focuses on the impact of digital infrastructure on macroeconomic performance or corporate innovation, with limited attention paid to its direct effect on debt financing costs. The nature of China’s financial market—where firms rely heavily on bank loans—makes this issue especially relevant. Drawing on China’s 'Broadband China' policy, this study provides the first systematic analysis of how digital infrastructure affects corporate debt costs, filling key theoretical and empirical gaps.

 

Methodology and Scope​​

The study adopts a Difference-in-Differences (DID) approach, leveraging the quasi-natural experiment created by the phased implementation of the “Broadband China” policy from 2014 to 2016 across 120 pilot cities. This exogenous policy shock allows the identification of the causal impact of digital infrastructure on debt costs.

 

​​Key Findings and Contributions

  • Theoretical Advancement: This study is the first to reveal that digital infrastructure can increase corporate debt costs by intensifying market competition, challenging the traditional view that enhanced information transparency reduces financing costs.
  • Policy Insights: It finds that non-state-owned and smaller enterprises are more significantly affected by the competitive pressures, offering a basis for differentiated regulatory responses.
  • Methodological Innovation: This study integrates macro-level policy shocks with micro-level corporate data to demonstrate the impact of digital infrastructure on financing costs via intensified market competition.

 

​​Why It Matters​​

​​The findings hold dual significance for businesses and policymakers:

  • For Firms: Firms need to be aware of the potential hidden financing risks associated with digital infrastructure and adapt by streamlining their debt structures and strengthening their competitive edge.
  • For Policymakers: The rollout of digital infrastructure should be coordinated with anti-monopoly measures to prevent excessive competition from threatening the survival of SMEs.

 

The full text is available for download as a PDF and is intended to inform and inspire a wide range of readers.