Does the central environmental inspection effectively improve air pollution?-An empirical study of 290 prefecture-level cities in China

The role of Chinese-style fiscal decentralization in promoting synergistic carbon and haze governance: insights from technological innovation

The reduction of haze and carbon emissions is extremely important for promoting sustainable development, improving air quality, enhancing health, and mitigating climate change. However, there is not enough research available on the impact of fiscal decentralization in China on the management of carbon and haze reduction. In order to thoroughly examine the effects of Chinese-style fiscal decentralization on the synergy between haze reduction and carbon reduction in different provinces, this study utilizes a dynamic spatial panel Durbin model using Han-Phillips Generalized Method of Moments (GMM) estimation and a multi-scale geographically and temporally weighted regression model. Our findings indicate that the eastern region consistently takes the lead in reducing haze and achieving carbon synergy. Fiscal technology decentralization has a direct positive impact and spatial spillover effect on carbon haze synergy with significant inverted U-shaped characteristics. These effects primarily arise from the promotion of technological innovation through fiscal technology decentralization. Furthermore, the influence of decentralizing fiscal technology expenditures on the degree of synergy between haze mitigation and carbon reduction varies significantly across China's provinces, both spatially and temporally. This entails promoting coordination between fiscal decentralization and policies related to haze and carbon emission reduction and encouraging information sharing, technology exchange, and collaborative projects between different regions to create a synergistic linkage effect. This will help achieve joint development and environmental protection goals in all regions. The discoveries carry significant consequences for directing the synchronized administration of haze and carbon and can serve as a solid basis for governmental decision-making aimed at enhancing air quality and attaining carbon neutrality through collaborative actions and policies.

Advancing nuanced pollution control: Local improvements and spatial spillovers of policies on key enterprises

This paper examines the impact of air pollution control policies targeting key polluting enterprises, highlighting a strategic shift towards precision pollution control that concentrates on high-emission, high-risk businesses. The paper explores the efficacy of these policies and their potential spatial spillover effects, utilizing panel data from 259 Chinese cities from 2013 to 2021. Employing the difference-in-differences (DID) model and spatial Durbin model, the study analyzes both the direct local effects and the broader spatial consequences of these regulatory measures on air quality. The findings indicate a significant reduction in air pollutant concentrations in urban areas, attributing this improvement to factors such as industrial restructuring, increased investment in science and technology, and economic growth. Spatial econometric analysis further reveals a substantial positive correlation in air quality among Chinese cities. However, estimates of the spillover effect indicate that while such policies successfully reduce pollution locally, they could unintentionally degrade air quality in adjacent areas. The study highlights the need for nuanced policy strategies to mitigate unintended spatial spillovers and enhance overall effectiveness. It recommends tailored policies that integrate environmental and socioeconomic objectives, national and regional coordination for consistent enforcement, technology-driven compliance strategies, and incentives for sustainable enterprise practices.

Central policy attitudes and innovation diffusion of local government: the case of China's river chief system

The central government's policy attitude will affect local governments' innovation adoption behavior, but the diffusion process is not static, which shows dynamic changes. This essay illustrates the spreading process of the Chinese River Chief System (RCS). It discusses how the factors influencing the diffusion of the RCS alter dynamically under various policy attitudes of the central government by using the segmented Event History Analysis (EHA) and Piecewise Constant Exponential (PCE) models. The results found that, under the central government's implicit policy attitude, peer city pressure and official promotion increase the probability of adoption of the RCS. When the central government's policy encourages the attitude, intra-city factors and peer city pressure affect the diffusion of the RCS. Still, official promotion is no longer an influential influencing factor. All three factors are no longer practical when the central government introduces mandatory regulations. In addition, vertical higher-level pressure and horizontal peer city pressure on adopting the RCS are competitive rather than complementary relationships. Local governments' attitudes regarding the RCS went through a path of "good governance signal-governance tool-authority obedience" under the varied policy philosophies of the central government. Local governments pay more attention to the actual circumstances in the region due to the non-mandatory central government direction, which advances the art of adopting policies. Contrarily, the central government's stipulations render the other factors' policies obsolete.

Role of short-term campaigns and long-term mechanisms for air pollution control: lessons learned from the "2 + 26" city cluster in China

Protecting people from air pollution is an important task for developing countries. Over the past several decades, different types of policies have been enacted in developing countries to improve air quality, with policy impact analysis being conducted as well. As for China, while there is some existing literature on the impact of short-term action on air quality, there is much less research to investigate the roles of long-term air quality control mechanism on air quality change. This paper uses the "2 + 26" city cluster in China as a case study area to particularly analyze the roles played by short-term campaigns that compose the Winter Action Plan and a long-term mechanism referred to as the environmental accountability system in pollution control. Based on econometric and descriptive statistical analyses, it is found that the implementation of the Winter Action Plan has significantly improved the air quality, and the environmental accountability system seems to have exerted an impact, as cities with better air quality appear to establish a more stringent environmental accountability system. The paper provides the following insights for other developing countries: short-term campaigns can quickly reduce pollution and protect human health, while long-term mechanisms are needed to ensure sustainable environmental protection.

Study on the impact of central environmental protection inspection on the health of the older adult population-A quasi-natural experiment in China

In 2015, the central government of China established the Central Environmental Protection Inspection (CEPI) system for oversight of local governments. It enhanced local government enforcement of environmental regulations, which had a considerable influence on the health of the local older adult population. This study quantifies the effects of local government regulation brought about by CEPI on the health of the older adult. It examines the impact mechanism using the DID model and panel data from the China Health and Retirement Longitudinal Study (CHARLS). The results show that (1) local governments' environmental protection regulations implemented by CEPI have a positive impact on the general health of the older adult. The results of the study passed the parallel trend test, PSM test, replacement variable test, and placebo test and remained significant; (2) in terms of the impact mechanism, CEPI has promoted local governments' environmental governance initiatives, which has reduced industrial wastewater emissions, industrial sulfur dioxide emissions, and industrial fumes emissions. This has improved air quality, thereby creating a good living environment for the older adult and improving their overall health; (3) according to heterogeneity research, the health of older adult living in the Yangtze River Basin, urban older adult, and older adult without chronic diseases is more significantly affected by the environmental protection regulations of the local governments brought about by CEPI.

The pollution control effect of the atmospheric environmental policy in autumn and winter: Evidence from the daily data of Chinese cities

The pollution control effect of seasonal environmental regulation policies in developing countries still lacks empirical evidence. In 2017, China implemented its first Atmospheric Environmental Policy in Autumn and Winter (AEPAW) to coordinate efforts among cities in reducing air pollutant emissions. Taking the daily panel data of 174 cities in northern China from July 2017 to July 2020 as samples, this paper empirically examines the pollution control effect of the AEPAW using a difference-in-differences model, a difference-in-difference-in-differences model, and a regression discontinuity design. The results show that the AEPAW significantly improves air quality in autumn and winter, with the air quality index decreasing by 5.6% on average by reducing PM_2.5, PM₁₀, SO₂, and O₃ emissions. However, the AEPAW only creates a short-term "policy-induced blue sky", and there exists a phenomenon of "retaliatory pollution" after the AEPAW ends. Besides, the pollution control effect of the AEPAW is moderated by the heterogeneity of the national "Two Sessions" and the Central Environmental Protection Inspection. The implementation of the AEPAW also has a significant spillover effect on air pollution control in surrounding areas. The net benefit from the AEPAW is estimated to be approximately US$ 670 million per year. These findings not only have practical significance for strengthening the comprehensive control of air pollution in China, but also give some important references for other developing countries.

The local-neighborhood effects of low-carbon city pilots program on PM2.5 in China: A spatial difference-in-differences analysis

Using the balanced panel of 260 cities in China from 2005 to 2018, this study explores the local-neighborhood effects of the low-carbon city pilots (LCCPs) program on PM_2.5 concentration by utilizing the spatial difference-in-differences (SDID) method. The results show that the LCCPs program can not only reduce the local PM_2.5 concentration but also effectively alleviate the smog pollution in neighboring cities. The reduction effect of LCCPs on PM_2.5 in local cities is more significant in central and western areas, second-tier and above cities and resource-based cities. Nevertheless, the spillover effect on neighboring cities is more significant in central and western areas, third-tier and below and non-resource-based cities. In addition, the impact of policy is mainly through green innovation, while the intermediary role of industrial structure upgrading is not significant. These findings can provide useful policy inspiration for scientifically implementing air pollution prevention and control actions and winning the battle to defend the blue sky.

Campaign-style governance of air pollution in China? A comprehensive analysis of the central environmental protection inspection

Central environmental protection inspection (CEPI) is a major institutional innovation in China's environmental governance, but its effectiveness in improving air quality is still unclear. However, the effectiveness of CEPI is of great significance and can be regarded as an important reference for deepening the reform of environmental governance system in China. This article takes the CEPI as a quasi-natural experiment and uses the regression discontinuity design (RDD) and the difference-in-differences (DID) methods to examine the effectiveness of this policy. The study found that the first round of CEPI reduced the air pollution of cities in the inspected provinces in a short time. Moreover, this positive policy effect persisted in the aftermath of the inspection, but this long-term effect is mainly reflected in PM₁₀ and SO_2. Heterogeneity analysis showed that CEPI was only effective in reducing air pollutants of industry-oriented cities, cities in Central and Eastern China, and cities with large or small population size. The moderating effect analysis indicated that a healthy relationship (close and clean) between the local governments and businesses was conducive to reducing air pollution. The research confirmed the presence of "selective" reduction of air pollutants in the long run caused by CEPI, thereby providing new inspiration for the improvement of campaign-style environmental governance and the follow-up CEPI work.

The Effect of Air Pollution Control Auditing on Reducing Carbon Emissions: Evidence from China

Analyzing the carbon-emission-reduction mechanism from the perspective of air pollution control auditing is of great practical significance for China to implement the dual-carbon strategy. Based on the panel data of 30 Chinese provinces from 2004 to 2018, we examine whether and how the auditing of air pollution control has an impact on carbon emission reduction by using multiple regression method and the mediating analysis. Our analyses show that air pollution control auditing can significantly restrain carbon emissions but has no impact on carbon emission intensity. Further research suggests that (1) the bottom-up audit represented by local audit institutions is more effective than the top-down audit represented by the National Audit Office; (2) air pollution control auditing follows a simple and direct method to curb carbon emissions by output reduction, regulation, and shutdown, rather than promoting technological progress and green transformation of enterprises in a high-quality development mode. Those findings provide an improvement direction for air pollution control auditing to contribute to carbon emission reduction and supply relevant policy references for implementing the dual carbon strategy.

Could environmental regulations improve the quality of export products? Evidence from China's implementation of pollutant discharge fee

This study investigates the effect of Chinese environmental regulations on the quality of export products. As the main way for the government to protect the environment, environmental regulations have greatly influenced the production behavior of enterprises. Based on the data of China's pollutant discharge fee implementation and industrial enterprise-pollution panel data, we find that the government's environmental regulations have significantly improved the quality of export products, and this conclusion is still valid after a series of robustness tests. Further analysis shows that the increase in the quality of export products originating from the regulated areas could be attributed to promoting enterprise innovation and reducing resource misallocation. The results in this study provide evidence that the Chinese government could coordinate economic and environmental protection in the new era.

How does biased technological progress affect haze pollution? Evidence from APEC economies

Biased technological progress is the act of energy conservation and emission reduction by changing the marginal rate of substitution. In this study, we introduced renewable energy into a production function, and proposed a method of identifying biased characteristics of technological progress, based on marginal productivity theory. A panel dataset for the Asia-Pacific Economic Cooperation (APEC) economies from 2000 to 2017 was analyzed to explore the effect of biased technological progress in reducing particulate matter (PM_2.5). We found that input biased technological progress tended to use more non-renewable energy. Input biased technological progress aggravated haze pollution; however, this effect decreased as the PM_2.5 concentration increased. Output biased technological progress significantly reduced haze pollution in high-income economies, but increased it in low-income economies. The effect of neutral technological progress on haze pollution was the opposite of the effect from output biased technological progress. We also found that increasing renewable energy consumption and reducing energy intensity were separate effective paths for input and output biased technological progress, respectively, to mitigate haze pollution. For neutral technological progress, improving total factor productivity was an important way to mitigate haze pollution. Finally, several policy recommendations are proposed to mitigate haze pollution in APEC economies.

Central environmental inspection and corporate environmental investment: evidence from Chinese listed companies

As a new type of environmental policy, the central environmental inspection (CEI) policy is an important innovative strategy in economic transition. Using the panel data of Chinese listed companies from 2011 to 2018, we apply the extended STIRPAT model to examine the direct impact of CEI policy on corporate environmental investment and its heterogeneity effects. The main findings are as follows: (1) The CEI policy has a positive influence on the environmental investment of all listed companies. (2) The promotion effect of CEI policy is quite different among five-round campaigns; while companies in later rounds fails to learn some experiences and lessons from the earlier rounds. (3) Due to the differences in property rights, industries, and environmental situations, the positive effect of CEI policy will be more significant in non-SOEs, companies in non-heavy-pollution industries, and companies in provinces with poor environment performance. This study supplements the research of environmental regulations, potentially contributing to the next stage of green and sustainable development in China.

Can national environmental protection supervision and control have a lasting impact on corporate production efficiency? - an empirical study based on the multi-phase difference-in-difference model

National environmental protection supervision and control has become essential means to regulate the environmental behavior of enterprises. Furthermore, the optimization, promotion, and sustainability of relevant policies are key topics of inquiry. Taking the implementation of national environmental protection supervision policies as the time series, this paper studies the impact of national environmental protection supervision and control on corporate production efficiency. It uses the multi-phase difference-in-difference (DID) method and explores the sustainability of said policies. Results indicate that, first, national environmental protection supervision and control can considerably enhance corporate production efficiency, and green technology innovation plays a vital role as an intervening variable. Second, national environmental protection supervision and control can only boost the increase in corporate production efficiency in the short term, and the impact will no longer be noticeable in the third year. This paper provides a decision-making basis for constantly boosting and revising national environmental protection supervision and control policies and stimulating green technology innovation.

Benefits and costs of campaign-style environmental implementation: evidence from China's central environmental protection inspection system

Campaign-style environmental implementation (CEI) is widely exerted in environmental protection, while its benefits and costs are controversial. We take advantage of the Central Environmental Protection Inspection (CEPI) System-a latest and distinguished form of CEI launched by China in 2016, as a quasi-natural experiment, to compare the benefits and costs of CEI based on water pollution effect estimates. Our results based on the annual panel data from 500 cities during 2009-2018 show that CEPI significantly reduced water pollution by an average of 20.7%. Further cost-benefit analysis based on the estimates of water pollution reduction shows that the potential health benefits of mortality and morbidity reduction resulting from CEPI are at least $12.26 billion, without bearing additional economic costs. We also explore why CEPI is cost-effective and find that CEPI reduces water pollution and becomes cost-effective mainly through deterring local officials, punishing polluting enterprises, and increasing public participation in environmental governance.

How does Chinese central environmental inspection affect corporate green innovation? The moderating effect of bargaining intentions

Central environmental inspection (CEI) is an environmental governance tool launched by the Chinese central government in recent years. The aim of CEI is to enhance the implementation of environmental regulations by going beyond supervising enterprises to supervise local governments. Previous studies have shown that CEI is beneficial for improving corporate environmental performance, but the relationship between CEI and the environmental behavior of companies achieving a high level of environmental performance is not clear. Drawing on principal-agent theory, this study explains how CEI influences corporate green innovation by changing the incentive structures of local governments and firms for adopting different environmental strategies. Moreover, two boundary conditions between CEI and corporate green innovation are identified: political connections and industry competition. The boundary conditions affect the individual and collective bargaining intentions of companies to comply with environmental regulations. We test our hypotheses by using a sample of 1152 publicly traded industrial firms in China from 2014 to 2018. Our findings show that CEI is conducive to corporate green innovation. This positive effect is strengthened in politically connected firms or firms in highly monopolized industries with lower bargaining intentions. Our study contributes to a better understanding of the effect of CEI on micro (firm-level) environmental behaviors and the antecedents of corporate green innovation.

Does the Central Environmental Protection Inspectorate Accountability System Improve Environmental Quality?

China is dedicated to enhancing the quality of its ecological environment, and the Central Environmental Protection Inspectorate (CEPI) system, which is an essential program for ecological civilization, has earned widespread acknowledgement for its efficacy in environmental improvement. This study investigated whether the CEPI accountability system contributed to enhancing the environmental quality by focusing on the CEPI accountability system. This study collected, explicitly, the number of people held accountable, the number of people being handed over for accountability, and the regions that the people held accountable were from; analyzed the current state of the CEPI accountability system in terms of the regional and batch differences in the accountability degree; and investigated whether the CEPI accountability system promoted environmental quality by using SPSS 10.00. The study discovered that, first and foremost, the CEPI system’s scientific level has gradually improved, and the CEPI has been more precise in its accountability targets. Second, the CEPI enhances environmental quality, and significantly impacts wastewater-discharge reduction. Third, the CEPI system lacks sustainability. Finally, the paper presents several recommendations for enhancing the CEPI accountability system, with a particular focus on how to make the CEPI system more sustainable.

Partitioning for “Common but Differentiated” Precise Air Pollution Governance: A Combined Machine Learning and Spatial Econometric Approach

Effective governance of air pollution requires precise identification of its influencing factors. Most existing studies attempt to identify the socioeconomic factors but lack consideration of multidimensional heterogeneous characteristics. This paper fills this long-ignored research gap by differentiating governance regions with regard to multidimensional heterogeneity characteristics. Decision tree recursive analysis combined with a spatial autoregressive model is used to identify governance factors in China. Empirical results show several interesting findings. First, geographic location, administrative level, economic zones and regional planning are the main heterogeneous features of accurate air pollution governance in Chinese cities. Second, significant influencing factors of air pollution in different delineated regions are identified, especially significant differences between coastal and non-coastal cities. Third, the trends of heterogeneity in urban air governance in China are to some extent consistent with national policies. The approach identifies factors influencing air pollution, thus providing a basis for accurate air pollution governance that has wider applicability.

Does air pollution inhibit manufacturing productivity in Yangtze River Delta, China? Moderating effects of temperature

China has been experiencing serious and recurrent incidences of air pollution in recent years. The frequency and timespans of such incidences are uncertain because of variable urban weather conditions, especially temperature, that inhibit the productivity of manufacturing companies. Matching data about listed manufacturing companies in China's Yangtze River Delta urban cluster from 2003 to 2018 with data on urban air pollution and weather, we explored the effects of air pollution on corporate productivity and the moderating role of temperature. We found that air pollution significantly inhibited the productivity of these companies, which decreased by about 0.1% for 1% increase in the concentration of PM2.5. Regarding industry heterogeneity, high-energy-consumption and low-technology manufacturing industries were more sensitive to the negative effects of air pollution. Furthermore, we concluded that low temperatures played an important role in causing significant increases in the negative effects of air pollution. In the fall and winter (October to January), the lower the temperatures resulted in stronger inhibitory effects of air pollution on corporate productivity. When the average daily temperature is 0°C-3°C, the moderating effects of temperature are even more obvious. To minimize the inhibitory effects of air pollution on productivity, governments and companies should implement positive adaptions to simultaneously confront air pollution and temperature change.

Is collaborative governance effective for air pollution prevention? A case study on the Yangtze river delta region of China

Collaborative governance plays an important role in air pollution prevention (APP). This paper aims to evaluate the policy effects of collaborative governance for APP in the Yangtze River Delta (YRD) region, analyze the collaborative mechanism from the perspective of institutional collective action (ICA) theory, and discuss its implications for improving the policy effects and regional collaboration. First, the causal relationship between collaborative environmental governance and air pollutant reduction is confirmed using the regression discontinuity design (RDD). However, it is also established that regional APP policies initiated by the Regional Cooperation Office of Yangtze River Delta (RCOYRD) did not have a long-term effect on reducing air pollutants. Second, initiative heterogeneity and administrative hierarchy heterogeneity of policy effects between cities are analyzed. It demonstrates that the mechanism formulated by RCOYRD has very limited impact on the reduction of transaction costs and collaborative risks of collaborative environmental governance. Third, clear division of responsibilities, balanced cost-benefit sharing, and coordinated enforcement between local governments are needed to improve the policy effects of collaborative governance for APP.

Air Pollution Control: An Analysis of China’s Industrial Off-Peak Production Policy through the Quasi-Natural Experiment Method

To reduce frequent heavy air pollution, the Chinese government suspends clinker production during the heating season in most areas of the North, which is known as the Clinker Off-peak Production Policy. The questions regarding such a repressive production policy for environmental purposes are whether this policy is effective in reducing pollutants and whether the marginal cost is high. To explore these policy effects, a quasi-experiment is designed, taking advantage of spatial-temporal variations in policy implementation. With the triple-difference method and environmental satellite data, the effect on air pollution is estimated to be −1900 μg/m2 (~2%) of SO2 and −3200 μg/m2 (~10%) of NO2. With daily price information and the difference-in-differences method, the market effect is estimated to be an approximately 10% increase in annual sale prices. The marginal cost estimated through a back-of-the-envelope analysis is 32 k RMB yuan/ton SO2 or NO2, which is 24.88 times the pollutant discharge fee but which better reflects the pollutant shadow price.