IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v87y2024ics1043951x24001329.html
   My bibliography  Save this article

The effect of government-firm relationship on pollution reduction: The role of official performance appraisal

Author

Listed:
  • Lin, Gaoyi
  • Xu, Changtuo
  • Chen, Hailin
  • Tang, Kai

Abstract

This paper investigates the unexpected positive effect of the government-firm relationship on environmental governance in the context of the reform of official performance appraisal (OPA) in China. In 2013, the central government launched an OPA reform that aimed to reduce the dependence on GDP growth and increase the focus on environmental protection in the appraisal process. According to the empirical results, in cities with mayors who have promotion incentives, firms that received favor from local governments can significantly reduce air pollutant emissions after the OPA reform. These findings remain robust even after conducting various tests, such as parallel trend test, omitted variables, and alternative explanations. This paper demonstrates that a reciprocal relationship between governments and firms can benefit society with the appropriate incentives.

Suggested Citation

  • Lin, Gaoyi & Xu, Changtuo & Chen, Hailin & Tang, Kai, 2024. "The effect of government-firm relationship on pollution reduction: The role of official performance appraisal," China Economic Review, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:chieco:v:87:y:2024:i:c:s1043951x24001329
    DOI: 10.1016/j.chieco.2024.102243
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X24001329
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2024.102243?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:87:y:2024:i:c:s1043951x24001329. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.