Environmental Target and Government Performance in China

Abstract

When do environmental targets improve the environmental performance of local governments? Previous studies have reached inconsistent conclusions on the effectiveness of environmental targets. Drawing on the principal-agent theory, this article identifies goal divergence and information asymmetry as challenges that impede the achievement of environmental targets. We analyze two policy instruments put in place to steer implementation, namely the mandatory target system and key cities for emission reduction, as components of the national 11th Five-Year Plan. We apply the difference-in-differences (DID) method to a longitudinal dataset of Chinese cities from 2001 to 2010 to investigate the impact of the two policy instruments on air and water pollution. Combining time variations, inter-provincial differences, and inter-prefectural differences in policy intensity, we find that mandatory pollution reduction targets have a pollution-reducing impact on two targeted pollutants, and key environmental protection cities reduce emissions only for air pollutants. However, we find no evidence of a synergy between the two types of policies. Our findings contribute to the understanding of implementation problems for government agents.

Keywords:

• China
• environmental performance
• environmental target
• policy instrument

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Acknowledgments

We would like to thank three anonymous reviewers for all the constructive and insightful comments. We thank scholars who offered feedback at the 2022 Annual Meeting of Global Public Policy and Governance, Fudan University.

Notes

1 See document at the following government website: http://www.gov.cn/jrzg/2007-06/03/content_634545.htm.

2 Key cities are subject to double supervision and assessment by both China’s State Environmental Protection Administration and Provincial State Environmental Protection Department. See government report at the following government website: https://www.mee.gov.cn/gkml/zj/bgt/200910/t20091022_173950.htm?keywords=.

3 See media report: https://sthjt.nmg.gov.cn/wrfz2021/shjgl/202108/t20210829_1849935.html.

Additional information

Funding

This work was supported by the Key Project of the National Natural Science Foundation of China: “Research on the reformation and innovation of national climate governance system towards carbon neutrality” (Grant Number: 72140007), Yangfan Project of Shanghai Science and Technology Commission (Grant Number: 23YF1410100), and Fundamental Research Funds for the Central Universities (Grant Numbers: 2022ECNUYYJ019 and 2022QKT005), Chunhui Plan Cooperation and Research Project, Ministry of Education of China (Grant number: HZKY20220070).

Notes on contributors

Juan Du

Juan Du is an associate professor at the School of Public Administration, East China Normal University. Her research focuses on policy process and policy analysis. Her research has been published in Public Administration, The China Quarterly, and International Public Management Journal, among others.

Hongtao Yi

Hongtao Yi is an associate professor at the John Glenn College of Public Affairs at The Ohio State University. He is also an affiliated professor in the School of Public Administration and Policy at Renmin University of China. His research interests focus on network governance, collaborative governance, policy process, and policy analysis in the context of energy and environment.