Environmental Governance In China Research Articles

How Does Environmental Regulation Affect Corporate Green Innovation: A Comparative Study between Voluntary and Mandatory Environmental Regulations

Environmental governance in China is a hybrid of mandatory and voluntary regulations in both implementation and enforcement. This paper aims to explore how voluntary environmental regulations (VERs) affect corporate green innovation (CGI) and the role of mandatory environmental regulations (MERs). The study uses panel data of 1,232 Chinese-listed manufacturing firms from 2004 to 2016 and the main findings are: first, VERs have a significant positive effect on CGI. Second, no significant effect has been found of MERs on firms’ CGI. Third, in areas where mandatory environmental regulations are weak, voluntary environmental regulation can better serve as a supplement to promote firms’ green innovation. The results are robust to a series of sensitivity checks. This study provides evidence that voluntary environmental regulation is more effective in encouraging enterprises to engage in green innovation activities, and it is an important supplement to mandatory environmental regulation.

The Performative State: Public Scrutiny and Environmental Governance in China

The Performative State: Public Scrutiny and Environmental Governance in China

Navigating Environmental Governance in China’s Hog Sector: Unraveling the “Race to the Bottom” Phenomenon and Spatial Dynamics

Navigating Environmental Governance in China’s Hog Sector: Unraveling the “Race to the Bottom” Phenomenon and Spatial Dynamics

Does the Squeaky Wheel Get More Grease? The Direct and Indirect Effects of Citizen Participation on Environmental Governance in China

We conducted a nationwide field experiment in China to evaluate the direct and indirect impacts of assigning firms to public or private citizen appeals when they violate pollution standards. There are three main findings. First, public appeals to the regulator through social media substantially reduce violations and pollution emissions, while private appeals cause more modest environmental improvements. Second, public appeals appear to tilt regulators’ focus away from facilitating economic growth and toward avoiding pollution-induced public unrest. Third, pollution reductions by treated firms are not offset by control firms, based on randomly varying the proportion of treated firms at the prefecture level. (JEL D22, L82, P28, P31, Q52, Q53, Q58)

Spatiotemporal Evolution, Spatial Agglomeration and Convergence of Environmental Governance in China—A Comparative Analysis Based on a Basin Perspective

Scientifically measuring the level of environmental governance (EGL) and understanding its spatial convergence has important reference value for ecological governance. In this paper, the global entropy method is applied to measure the EGL of 284 prefecture-level cities in China from 2007 to 2019, which are divided into three major river basins, including the Yellow River, Yangtze River, and Pearl River, to observe the spatial–temporal evolutionary characterization through a standard deviation ellipse model. The coefficient of variation and the spatial econometric model are the tools used to conduct the spatial convergence test. The results are as follows: (1) China’s EGL is low overall, though it is fluctuating upward at low magnitude, and the three major river basins follow the ranking: The Pearl River Basin > The Yangtze River Basin > The Yellow River Basin. (2) Spatially, the distribution pattern of China’s EGL changes from “scattered and sporadic” to “multipolar core”. (3) The center of China’s environmental governance was concentrated in the east from 2007 to 2019, and the EGL in the midstream and downstream regions of the three major river basins increased rapidly. (4) Environmental governance in China has significant absolute and conditional β-convergence characteristics, as do the three major basins, while the ranking of convergence speed remains “Yangtze River Basin > Yellow River Basin > Pearl River Basin”. Of these, economic development accelerated the convergence rate of environmental governance in China and its three major river basins; financial pressure significantly inhibited the convergence of the EGL of the Yellow River Basin. The improvement of the EGL in the Pearl River Basin was also negatively influenced by the industrial structure.

Trading our way to a greener future: how environmental rights trading reduces urban carbon emissions in China-empirical analysis based on China's emission rights trading.

Environmental rights trading (ERT) is considered one of the crucial instruments for environmental governance in China, accelerating urban low-carbon sustainable development. This study utilized the Chinese Emissions Trading System (ETS), which has been implemented most widely, longest, and most typical, to represent ERT and examine its contribution to urban carbon emission reduction. Through a quasi-natural experiment perspective, urban panel data were collected from 2003 to 2019, and a time-varying difference-in-differences model and moderating models were developed. The study indicates that ERT can significantly reduce carbon emissions in cities, with robust results. In addition, the carbon reduction effect of ERT varies by city region, type, and size. This phenomenon is more obvious in central and western cities and resource-based cities. Finally, a framework to strengthen the carbon reduction effect of ERT was creatively constructed. The strengthening effects of green innovation, industrial structure, and clean energy are evident. This helps provide evidence for ERT layout and extension, especially in countries with high carbon reduction needs such as China. ERT affects not only policymakers but also a greener future for every organization and individual in the city.

How does the opening of high-speed rail drive energy restructuring? New micro evidence from China

Against the dual backdrop of China vigorously promoting high-speed railways (HSR) construction and establishing an ecological civilization system, HSR as urban transportation infrastructure, is currently gaining growing attention from the academic community due to its environmental benefits as well as its effects in energy conservation and emission reduction. In this context, this research treats the initiation of HSR as a quasi-natural experiment, meanwhile empirically examining the effect of HSR on energy structure restructuring and exploring the micro-level channels through which it operates. The empirical results validate the reduction effect of HSR opening on fuel energy consumption of industrial enterprises, especially the usage of fuel coal. This highlight remains valid across a series of robustness tests. Moreover, it is evident that the “driving effect” of enterprise technological innovation capability and the “industrial upgrading effect” of enterprise relocation are effective transmission pathways in the process of HSR opening influencing the adjustment of energy consumption structure. Moreover, the unique characteristics of enterprise, industry, and region introduce a certain degree of heterogeneity. The low-energy-consumption effect of HSR is more pronounced in high-carbon industry enterprises, technology-intensive enterprises, firms engaged in innovation pilot cities, small to the medium-sized city and resource-based city. This paper provides a new perspective on energy structure adjustment, contributing to offering solid experiences and references for environmental governance in China and other emerging economies.

Environmental governance-public supervision and participation nexus under state supervision system and carbon neutrality targets in China.

China is now experiencing severe environmental issues due to its rapid socio-economic advancement. Environmental governance is crucial to preserving China's rapidly degrading natural ecology. Public supervision and participation are important factors that effectively promote environmental quality. Therefore, this analysis primarily examines the relationship between China's public participation and environmental governance. Hence, the primary focus of the analysis is to investigate the asymmetric impact of public participation on environmental governance from 1996 to 2020. We have employed the nonlinear QARDL model that estimates the short- and long-run impact across different quantiles. The study's results support that long-run estimates for positive change in environmental NGOs (ENGOs) are significantly positive for almost all quantiles, while those for negative change in ENGOs are negative and have a significant impact at higher quantiles. In the short run, the estimates of positive change in ENGOs are positive and significant; however, the negative change in ENGOs does not significantly impact environmental governance at lower quantiles. The Wald test also confirms the asymmetric impact of ENGOs on environmental governance across various quantiles in short and long run. The findings of this analysis underscore the critical role of public supervision and participation in influencing environmental governance in China.

Power transitions and pollution reduction: Decoding the impact of municipal leadership changes on firm-level pollution in China

This research examines the influence of political system changes, particularly official turnover, on pollution reduction in Chinese industrial firms—a response to the environmental challenges posed by China's economic growth. Utilizing micro-panel data from 2000 to 2014 and an official turnover database, this study assesses how these turnovers affect firm-level pollution. The analysis confirms that official turnovers significantly reduce emissions, with the effect more pronounced in non-state-owned enterprises, under officials who are male, hold PhDs, and are older. This impact is also stronger in areas with a larger tertiary sectors and higher economic growth. A detailed comparison reveals that mayoral turnovers have a greater abatement effect than those of municipal secretaries, especially in cases of abnormal turnovers. Crucially, this study demonstrates that mayoral turnovers lead to pollution reduction by promoting corporate exports and innovation. The baseline regression results, confirmed as robust after extensive robustness checks, underscore the significance of these findings. This paper sheds light on the political dynamics of environmental governance in China, advocating bureaucratic reforms to reduce emissions and providing strategic recommendations to improve national environmental sustainability.

Dynamic evolution of China's government environmental regulation capability and its impact on the coupling coordinated development of the economy-environment

Effective environmental governance in China is crucial for promoting global environmental governance initiatives. The government's environmental regulatory capacity (GERC) is a core metric reflecting the effectiveness of China's environmental governance. This paper aims to investigate the strength of China's GERC and empirically verify its impact on the coupling coordinated development of the economy-environment (CEE). We use a multiple indicators and multiple causes model (MIMIC) to measure the governmental environmental regulation capabilities of 30 provinces in China, from 2007 to 2018. Then, the econometric model is used to test the impact of the GERC on CEE. The results show that, although the GERC exhibits an overall upward trend, it is still at a low level for most regions. The GERC in different regions of China exhibits a certain gradient effect, with a weak polarization trend. The increase in the GERC of regions with high levels of economic development is significantly faster than that in regions with low levels of economic development. Moreover, the improvement in the GERC has not promoted coordinated development between the economy and the environment, which means that there is still a mutual “crowding out effect” between economic development and environmental protection in China.

Challenging the nexus of power: The gaming dilemma of collaboration between government and enterprises in environmental management

This study presents a novel approach to analysing environmental governance by Chinese governments through the lens of a tripartite evolutionary game model. The key novelty of our research lies in the explicit incorporation of a reputation mechanism into the evolutionary game analysis, which significantly influences government decision-making, environmental governance strategies, and the dynamics of the relationship between government and polluting enterprises. By assessing the marginal effects of conventional governance and mobilization-based governance on the environmental mechanism, as well as the collusion behaviours between government and polluting enterprises, our study sheds light on previously unexplored aspects of environmental governance. Our findings indicate that the reputation mechanism plays a crucial role within the evolutionary game system of environmental governance, exerting a substantial impact on government decision-making. Furthermore, we demonstrate that policy interventions, such as increasing the cost of penalties under regulatory policies, can encourage compliance strategies among enterprises. Additionally, our research highlights the high sensitivity of reputation signals towards local government's environmental governance strategies, directly impacting their credibility and influencing the adoption of proactive environmental governance strategies. Moreover, we emphasize the role of the central environmental inspection system as a means to facilitate the transmission of environmental governance pressures between central and local governments, ultimately fostering a green development concept and promoting coordinated development between the economy and ecological civilization. Overall, this study provides valuable insights into the intricacies of environmental governance in China and underscores the importance of reputation mechanisms and policy interventions in promoting sustainable development.

The bilateral effects of digital economy on regional carbon emissions in China

The impacts of the digital economy on regional carbon emissions have attracted much concerns from all regions of China. Using panel data for 30 Chinese provinces and cities from 2011 to 2020, the study empirically examined the bilateral effects of the digital economy on regional carbon emissions (RCBs) and the heterogeneous characteristics under different conditions by various econometric models. The results indicate that, the inhibition effect of digital economy development on regional carbon emissions is stronger than the promotion effect, which is 13.38% lower and 12.11% higher than the frontier level respectively. When both effects are combined, it makes regional carbon emissions 1.27% below the frontier boundary. In addition, the inhibition effect of the digital economy on carbon emissions (DECEs) predominant and presents a declining trend during the study period. And the inhibition effect of the digital economy on carbon emissions in the eastern region is highest among all the regions. Moreover, the level of different factors such as digital economy, human capital and economic development, can effectively strengthen the inhibition effect of digital economy on regional carbon emissions. This work will be conducive to fully leveraging the important role of the digital economy in regional environmental governance in China, and promote the achievement of China’s carbon peaking and carbon neutrality goals.

Energy governance in China: A mixture of democratic environmentalism and authoritarian environmentalism

AbstractThis paper challenges the conventional wisdom that environmental governance in China is a typical example of authoritarian environmentalism. By analyzing the case of energy governance, it indicates that China has become aware that energy and environmental issues are inter‐related and complicated and that more diverse and multi‐level solutions are required to reach increasingly ambitious national goals. In the context of ongoing state reform, local governments, enterprises, and civil society have played more active roles during the process of policy formulation and implementation. But meanwhile, the central government is tightening regulation and supervision to reduce non‐compliance with its energy initiatives and to safeguard national security and social stability. Therefore, energy governance in China has displayed a mixture of democratic and authoritarian elements. The state can adopt different measures based on the specific situation it faces and the final outcome it wants to reach. More broadly, this case reveals that there is no simple relationship between the regime type and its corresponding energy governance model. The study of environmental politics should not be confined to the examination of formal institutional features but also needs to take concrete practices in every country into account.

Peer effects of environmental regulation on sulfur dioxide emission intensity: Empirical evidence from China

Under the peer effect theory, this study examines the impact of environmental regulation on sulfur dioxide emissions and investigates the existence of peer effects in environmental governance mechanisms. Using panel data from 285 prefecture-level cities in China from 2008 to 2019, a spatial econometric model reveals that environmental regulation significantly reduces local sulfur dioxide discharge while exhibiting positive spatial spillover effects in surrounding regions, reflecting the “beggar-thy-neighbor” dilemma of environmental governance in China. The study confirms the presence of a positive peer effect of environmental regulation, supporting the combination of ‘top-down’ and ‘bottom-up’ ecological governance approaches. The impact of environmental regulation on sulfur dioxide emissions varies based on regulation intensities and urban characteristics such as geographical position, marketization degree, and official governor's tenure. Learning mechanisms and competition mechanisms partially establish the peer effect of environmental regulation in most Chinese cities. Additionally, exogenous shocks from macro events and strategic policies exert differential influences on the peer effect of environmental regulation, particularly in cities with low regulation intensity. This study provides valuable guidance for balancing environmental protection and sustainable economic growth, fostering intercity collaboration in environmental regulation, and formulating site-specific sustainable development strategies for China and other emerging economies.

Influence of Media Attention on the Quality of Environmental, Social, and Governance Information Disclosure in Enterprises: An Adjustment Effect Based on the Shareholder Relationship Network

As an intermediary in information dissemination and a guide of public opinion, the media represent an important external supervision force in corporate governance. It is very important to fully understand the supporting role of public media in the modernization of environmental governance in China to improve the quality of ESG information disclosure. Based on the data of companies listed on the Shanghai and Shenzhen 300 Index from 2015 to 2020, this paper finds that media attention has a significant positive impact on ESG information disclosure, that is, high-frequency media attention can promote the quality of ESG information disclosure, while different types of media reports can promote the quality of ESG information disclosure. Considering the characteristics of media emotions, it is found that negative media reports can promote the quality of ESG information disclosure. The shareholder relationship network strengthens the positive influence of media attention on the ESG information disclosure of enterprises through the information advantage of a “weak relationship”. These research conclusions reveal the internal influence of media attention on the quality of the ESG information disclosure of enterprises and the regulatory role of the shareholder relationship network to some extent, which provides the governance perspective on and empirical basis for ESG information disclosure research, and it also provides a decision-making reference for promoting the quality of the ESG information disclosure of listed enterprises in China, enriching the theoretical research and practical exploration of ESG information disclosure.

Linking Theory with Practice? Cadre Training and Environmental Governance in China

Linking Theory with Practice? Cadre Training and Environmental Governance in China

Understanding Environmental Governance in China Through the Green Shield Action Campaign

ABSTRACT China’s Green Shield Action (GSA) campaign provides critical insights into the nature of environmental politics during a campaign-style inspection under an authoritarian regime. Based on fieldwork in Fujian from 2019 to 2022, the dynamic interactions among stakeholders, the role of campaigns in environmental governance, and the logic behind policy formulation, implementation, and revision were explored. This study finds that in the campaign-style inspection, by applying new technology and improved management, less room was left for local governments to make trade-offs and dilemmas, which further caused high political pressure and conflicts. These outcomes were used as a reference for the central government to adjust its policies and implement regular enforcement with an improved environmental governance system. The campaign-style enforcement is not the opposite of regular enforcement, but these two are closely connected in the case of the GSA.

The strategy to achieve zero‑carbon in agricultural sector: Does digitalization matter under the background of COP26 targets?

Under the background of Conference of the Parties (COP26) targets, how to propose sustainable development policies to achieve net zero emissions is very urgent. Internet development has promoted the intellectualization of agricultural environmental governance in China. This paper adopts DEA method and Tobit model to computes the agricultural energy conservation and emission reduction efficiency, and threshold regression model to study the connection between internet advancement and the China's agricultural energy conservation and emission reduction efficiency. The emergence of the internet has a substantial beneficial influence on agricultural energy conservation and emission reduction efficiency, as demonstrated by empirical findings, and this conclusion holds true even after considering potential endogeneity. Moreover, the estimates of the threshold regression model demonstrate the rise of the internet has a double-threshold effect on China's agricultural green total factor energy efficiency (ATFEE). Specifically, the impact of internet advancement on agricultural energy conservation and emission reduction efficiency exhibits a trend of initially increasing and then declining with the regional industrial structure optimization, development of education, and technology enhancement. Therefore, digitalization takes an important part in achieving zero emissions in the agricultural sector.

Chinese cities as digital environmental governance innovators: Evidence from subnational low-Carbon plans

Research examining the rise of digital environmental governance, particularly at the subnational scale in China, is fairly limited. Critical questions regarding how digital technologies applied at the subnational level may shape or transform environmental governance are only beginning to be explored, given cities’ increasing role as sustainability experimenters and innovators. In this study, we investigate how smart city initiatives that incorporate big data, artificial intelligence, 5G, Internet of Things, and information communication technologies, may play a role in the transformation towards a “digital China.” We conceptualize three major pathways by which digital technology could transform environmental governance in China: through the generation of new data to address existing environmental data gaps; by enhancing the policy analytical capacity of environmental actors through the use of automation, digitalization, and machine learning/artificial intelligence; and last, through reshaping subnational-national, and state-society interactions that may shift balances of power. With its dual prioritization of digital technologies and climate change, China presents an opportunity for examining digitalization trends and to identify gaps in governance and implementation challenges that could present obstacles to realizing the transformative potential of digital environmental management approaches.

Can China achieve ecological sustainability? An LMDI analysis of ecological footprint and economic development decoupling

Nowadays, economic development and ecological environment protection are difficult to synergize, which poses a challenge to global sustainable development. This paper uses the Tapio decoupling model to evaluate the decoupling between ecological footprint and economic growth, and uses the Logarithmic Mean Divisia Index (LMDI) decomposition methods to identify the driving factors of decoupling at national and provincial levels. There are four driving factors: industrial structural, technological innovation, economic development, and population size. It is found that: (1) The ecological footprint of 28 provinces show an upward trend, with an average increase of 40.26%. Among them, the ecological footprint of three provinces in the northwest region increased by more than 100%, and there is an urgent need to reduce natural resource consumption and ensure resource sustainability; (2) The number of provinces with good decoupling show a change of first declining and then rising. Moreover, the spatial distribution characteristics of the decoupling state are obvious, with the northeastern region in negative decoupling; and (3) Technological innovation plays a positive and leading role in decoupling, with a contribution rate of 0.5402. However, economic development inhibits decoupling, with a contribution rate of 0.3829. According to the results, this paper suggests countermeasures and approaches to promote the decoupling of ecological footprint and economic growth, and establishes three key regional concerns. It provides a basis for further analysis of environmental governance in China. Not only that, the regulatory measures and methods proposed in this study will also help promote the decoupling process of other developing countries in the world.