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Environmental regulation and the industrial sector in China: the role of informal relationships in policy implementation

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  • Peter Hills
  • C. S. Man

Abstract

This paper focuses on the relationship between environmental regulators and industrial enterprises in China. There are widely recognized ‘implementation gaps’ in the Chinese environmental protection system. Previous studies have attributed such gaps to a combination of factors including legislative shortcomings, poorly designed policy instruments, an unsupportive work environment for environmental regulators, and a pro‐growth political and social environment. The present paper seeks to extend the analysis by examining the role of informal relationships between individuals and organizations, and their mediating influence on the implementation of environmental policy measures. We argue that such relationships, which reflect a cultural predisposition to harmony and consensus‐building among key actors, play an important role in determining how environmental policies are implemented, and how stringently regulations are enforced at the local level. Given the importance of decentralized implementation responsibilities in China, weaknesses in the system at the local level can constrain the achievement of national environmental policy objectives. A model of the implementation process is presented, and case studies from the industrial city of Foshan in Guangdong Province are used to illustrate the role played by personal and organizational relationships (guanxi) among environmental regulators and industrial polluters. © 1998 John Wiley & Sons, Ltd and ERP Environment.

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  • Peter Hills & C. S. Man, 1998. "Environmental regulation and the industrial sector in China: the role of informal relationships in policy implementation," Business Strategy and the Environment, Wiley Blackwell, vol. 7(2), pages 53-70, May.
    • Handle: RePEc:bla:bstrat:v:7:y:1998:i:2:p:53-70
    DOI: 10.1002/(SICI)1099-0836(199805)7:23.0.CO;2-D
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    References listed on IDEAS

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    1. S. G. Breslin, 1996. "Sustainable Development In China," Sustainable Development, John Wiley & Sons, Ltd., vol. 4(2), pages 103-108.
    2. Bin Wu & Andrew Flynn, 1995. "Sustainable development in China: Seeking a balance between economic growth and environmental protection," Sustainable Development, John Wiley & Sons, Ltd., vol. 3(1), pages 1-8.
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    Cited by:

    1. Wei Shen, 2015. "Chinese business at the dawn of its domestic emissions trading scheme: incentives and barriers to participation in carbon trading," Climate Policy, Taylor & Francis Journals, vol. 15(3), pages 339-354, May.
    2. Rui Mu & Wouter Spekkink, 2018. "A Running Start or a Clean Slate? How a History of Cooperation Affects the Ability of Cities to Cooperate on Environmental Governance," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    3. Zhu, Qinghua & Cordeiro, James & Sarkis, Joseph, 2012. "International and domestic pressures and responses of Chinese firms to greening," Ecological Economics, Elsevier, vol. 83(C), pages 144-153.
    4. Henk J. Steinz & Frank J. Van Rijnsoever & Frans Nauta, 2016. "How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 593-608, December.
    5. Xiaowei Chen & Tianyu Zhang & Fu Jia, 2020. "Industry convergence as a strategy for achieving sustainable development of agricultural complex: The case of Sandun‐Lanli in China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2679-2694, September.
    6. Turlough F. Guerin, 2009. "An assessment and ranking of barriers to doing environmental business with China," Business Strategy and the Environment, Wiley Blackwell, vol. 18(6), pages 380-396, September.
    7. Vikash Ramiah & Jacopo Pichelli & Imad Moosa, 2015. "The Effects of Environmental Regulation on Corporate Performance: A Chinese Perspective," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-31, December.

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