Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-27T08:00:54.414Z Has data issue: false hasContentIssue false

Political incentives, Party Congress, and pollution cycle: empirical evidence from China

Published online by Cambridge University Press:  02 July 2020

Zhihua Tian
Affiliation:
School of Economics, Zhejiang University of Technology, Hangzhou, China
Yanfang Tian*
Affiliation:
School of Political Science and Public Administration, East China University of Political Science and Law, Shanghai, China
*
*Corresponding author. E-mail: [email protected]

Abstract

The political incentives of local officials affect their preferences for policy options. This study examines the impact of the convening cycle of Provincial Communist Party Congresses (PCPCs) in China on pollution emission intensity. Based on the data of 281 cities and city officials from 2003 to 2014, the present study finds strong evidence of a political pollution cycle manifesting as significant increases in pollution emission intensity before PCPCs followed by visible decreases after PCPCs. PCPCs provide city officials with strong political incentives to pursue short-term economic performance before congresses, which leads to a surge in pollution emission intensity. The difference in pollution emission intensity before and after the PCPCs reveals the existence of such political incentives. The findings suggest that a significant relationship exists between the political incentives of city officials and environmental pollution. Therefore, the effective governance of environmental pollution must involve changing the incentive structure of city officials.

Type
Research Article
Copyright
Copyright © The Author(s) 2020. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bao, Q, Chen, Y and Song, L (2011) Foreign direct investment and environmental pollution in China: a simultaneous equations estimation. Environment and Development Economics 16, 7192.CrossRefGoogle Scholar
Cai, H and Treisman, D (2006) Did government decentralization cause China's economic miracle. World Politics 58, 505535.CrossRefGoogle Scholar
Cai, X, Lu, Y, Wu, M and Yu, L (2016) Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China. Journal of Development Economics 123, 7385.CrossRefGoogle Scholar
Cameron, AC, Gelbach, JB and Miller, DL (2011) Robust inference with multiway clustering. Journal of Business and Economic Statistics 29, 238249.CrossRefGoogle Scholar
Chen, T and Kung, JK (2016) Do land revenue windfalls create a political resource curse? Evidence from China. Journal of Development Economics 123, 86106.CrossRefGoogle Scholar
Chen, Z, Tang, J, Wan, J and Chen, Y (2017) Promotion incentives for local officials and the expansion of urban construction land in China: using the Yangtze River Delta as a case study. Land Use Policy 63, 214225.CrossRefGoogle Scholar
Chen, YJ, Li, P and Lu, Y (2018) Career concerns and multitasking local bureaucrats: evidence of a target-based performance evaluation system in China. Journal of Development Economics 133, 84101.CrossRefGoogle Scholar
Cole, MA, Elliott, RJ and Zhang, J (2011) Growth, foreign direct investment, and the environment: evidence from Chinese cities. Journal of Regional Science 51, 121138.CrossRefGoogle Scholar
Di, W (2007) Pollution abatement cost savings and FDI inflows to polluting sectors in China. Environment and Development Economics 12, 775798.CrossRefGoogle Scholar
Eaton, S and Kostka, G (2014) Authoritarian environmentalism undermined? Local leaders’ time horizons and environmental policy implementation in China. China Quarterly 218, 359380.CrossRefGoogle Scholar
Ebenstein, A (2012) The consequences of industrialization: evidence from water pollution and digestive cancers in China. Review of Economics and Statistics 94, 186201.CrossRefGoogle Scholar
Guo, G (2009) China's local political budget cycles. American Journal of Political Science 53, 621632.CrossRefGoogle Scholar
Han, L and Kung, JK (2015) Fiscal incentives and policy choices of local governments: evidence from China. Journal of Development Economics 116, 89104.CrossRefGoogle Scholar
He, G, Fan, M and Zhou, M (2016) The effect of air pollution on mortality in China: evidence from the 2008 Beijing Olympic Games. Journal of Environmental Economics and Management 79, 1839.CrossRefGoogle Scholar
Huang, Y (2002) Managing Chinese bureaucrats: an institutional economics perspective. Political Studies 50, 6179.CrossRefGoogle Scholar
Huang, Z and Du, X (2017) Government intervention and land misallocation: evidence from China. Cities (London, England) 60, 323332.Google Scholar
Jia, R, Kudamatsu, M and Seim, D (2015) Political selection in China: the complementary roles of connections and performance. Journal of the European Economic Association 13, 631668.CrossRefGoogle Scholar
Jin, H, Qian, Y and Weingast, BR (2005) Regional decentralization and fiscal incentives: federalism, Chinese style. Journal of Public Economics 89, 17191742.CrossRefGoogle Scholar
Kahn, ME, Li, P and Zhao, D (2015) Water pollution progress at borders: the role of changes in China's political promotion incentives. American Economic Journal: Economic Policy 7, 223242.Google Scholar
Kostka, G and Mol, AP (2013) Implementation and participation in China's local environmental politics: challenges and innovations. Journal of Environmental Policy and Planning 15, 316.CrossRefGoogle Scholar
Lan, J, Kakinaka, M and Huang, X (2012) Foreign direct investment, human capital and environmental pollution in China. Environmental and Resource Economics 51, 255275.CrossRefGoogle Scholar
Li, H and Zhou, L (2005) Political turnover and economic performance: the incentive role of personnel control in China. Journal of Public Economics 89, 17431762.CrossRefGoogle Scholar
Li, H, Wei, Y, Liao, F and Huang, Z (2015) Administrative hierarchy and urban land expansion in transitional China. Applied Geography 56, 177186.CrossRefGoogle Scholar
Liang, J and Langbein, L (2015) Performance management, high-powered incentives, and environmental policies in China. International Public Management Journal 18, 346385.CrossRefGoogle Scholar
Mol, AP and Carter, N (2006) China's environmental governance in transition. Environmental Politics 15, 149170.CrossRefGoogle Scholar
Nie, H, Jiang, M and Wang, X (2013) The impact of political cycle: evidence from coalmine accidents in China. Journal of Comparative Economics 41, 9951011.CrossRefGoogle Scholar
Persson, P and Zhuravskaya, E (2016) The limits of career concerns in federalism: evidence from China. Journal of the European Economic Association 14, 338374.CrossRefGoogle Scholar
Schreifels, J, Fu, Y and Wilson, EJ (2012) Sulfur dioxide control in China: policy evolution during the 10th and 11th five-year plans and lessons for the future. Energy Policy 48, 779789.CrossRefGoogle Scholar
Shi, X and Xi, T (2018) Race to safety: political competition, neighborhood effects, and coal mine deaths in China. Journal of Development Economics 131, 7995.CrossRefGoogle Scholar
Shih, V, Adolph, C and Liu, M (2012) Getting ahead in the communist party: explaining the advancement of central committee members in China. American Political Science Review 106, 166187.CrossRefGoogle Scholar
Su, F and Tao, R (2017) The China model withering? Institutional roots of China's local developmentalism. Urban Studies 54, 230250.CrossRefGoogle Scholar
Tian, Z, Tian, Y, Chen, Y and Shao, S (2020) The economic consequences of environmental regulation in China: from a perspective of the environmental protection admonishing talk policy. Business Strategy and the Environment 29, 17231733.CrossRefGoogle Scholar
Tsai, PH (2016) Fiscal incentives and political budget cycles in China. International Tax and Public Finance 23, 10301073.CrossRefGoogle Scholar
Wang, Y (2010) The analysis of the impacts of energy consumption on environment and public health in China. Energy 35, 44734479.CrossRefGoogle Scholar
Weingast, BR (2009) Second generation fiscal federalism: the implications of fiscal incentives. Journal of Urban Economics 65, 279293.CrossRefGoogle Scholar
Wu, J, Deng, Y, Huang, J, Morck, R and Yeung, B (2014) Incentives and outcomes: China's environmental policy. Capitalism and Society 9, Article 2.Google Scholar
Xi, T, Yao, Y and Zhang, M (2018) Capability and opportunism: evidence from city officials in China. Journal of Comparative Economics 46, 10461061.CrossRefGoogle Scholar
Xie, L, Huang, Y and Qin, P (2018) Spatial distribution of coal-fired power plants in China. Environment and Development Economics 23, 495515.CrossRefGoogle Scholar
Xu, C (2011) The fundamental institutions of China's reforms and development. Journal of Economic Literature 49, 10761151.CrossRefGoogle Scholar
Yao, Y and Zhang, M (2015) Subnational leaders and economic growth: evidence from Chinese cities. Journal of Economic Growth 20, 405436.CrossRefGoogle Scholar
Yu, J, Xiao, J and Gong, L (2015) Political cycle and land leasing: evidence from Chinese cities. Economic Research Journal 2, 88102.Google Scholar
Yu, J, Zhou, L and Zhu, G (2016) Strategic interaction in political competition: evidence from spatial effects across Chinese cities. Regional Science and Urban Economics 57, 2337.CrossRefGoogle Scholar
Zheng, S, Kahn, ME, Sun, W and Luo, D (2014) Incentives for China's urban mayors to mitigate pollution externalities: the role of the central government and public environmentalism. Regional Science and Urban Economics 47, 6171.CrossRefGoogle Scholar