IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v81y2024ics0176268024000065.html
   My bibliography  Save this article

Gloomy future, gloomy sky: Promotion incentives and pollution in China

Author

Listed:
  • Xue, Chang
  • Zhang, Xiaoyu

Abstract

The career prospects of politicians can significantly influence their policy decisions, including those related to environmental protection. This study examines how promotion incentives affect environmental outcomes by analyzing prefectural pollution and personnel data in China from 2003 to 2017. The research indicates that the promotion prospects of prefecture party secretaries were negatively affected by changes in their social networks with the transition of power. The difference-in-differences analyses, using the power transition as a shock, reveal that sulfur dioxide emissions significantly increased in prefectures governed by secretaries who had lost their connections. This was due to a decrease in officials' motivation to prioritize environmental protection, owing to their slim chances of promotion. The possibility of an increase in pollution as a result of growth competition is ruled out. The mechanism is demonstrated through text analysis of local governments' annual work reports.

Suggested Citation

  • Xue, Chang & Zhang, Xiaoyu, 2024. "Gloomy future, gloomy sky: Promotion incentives and pollution in China," European Journal of Political Economy, Elsevier, vol. 81(C).
  • Handle: RePEc:eee:poleco:v:81:y:2024:i:c:s0176268024000065
    DOI: 10.1016/j.ejpoleco.2024.102504
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268024000065
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejpoleco.2024.102504?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.

    References listed on IDEAS

    as
    1. Timothy Besley & Anne Case, 2003. "Political Institutions and Policy Choices: Evidence from the United States," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
    2. Petra Persson & Ekaterina Zhuravskaya, 2016. "The Limits Of Career Concerns In Federalism: Evidence From China," Journal of the European Economic Association, European Economic Association, vol. 14(2), pages 338-374, April.
    3. Timothy Besley & Robin Burgess, 2002. "The Political Economy of Government Responsiveness: Theory and Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1415-1451.
    4. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    5. Robin Burgess & Matthew Hansen & Benjamin A. Olken & Peter Potapov & Stefanie Sieber, 2012. "The Political Economy of Deforestation in the Tropics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(4), pages 1707-1754.
    6. Timothy Besley & Anne Case, 1995. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 769-798.
    7. Zhi Wang & Qinghua Zhang & Li-An Zhou, 2020. "Career Incentives of City Leaders and Urban Spatial Expansion in China," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 897-911, December.
    8. John A. List & Daniel M. Sturm, 2006. "How Elections Matter: Theory and Evidence from Environmental Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1249-1281.
    9. Xing Li & Chong Liu & Xi Weng & Li-An Zhou, 2019. "Target Setting in Tournaments: Theory and Evidence from China," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2888-2915.
    10. Wu, Mingqin & Cao, Xun, 2021. "Greening the career incentive structure for local officials in China: Does less pollution increase the chances of promotion for Chinese local leaders?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    11. Huang, Zhangkai & Li, Lixing & Ma, Guangrong & Qian, Jun, 2021. "The reversal of privatization in China: A political economy perspective," Journal of Corporate Finance, Elsevier, vol. 71(C).
    12. Chenggang Xu, 2011. "The Fundamental Institutions of China's Reforms and Development," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1076-1151, December.
    13. Jin, Hehui & Qian, Yingyi & Weingast, Barry R., 2005. "Regional decentralization and fiscal incentives: Federalism, Chinese style," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1719-1742, September.
    14. Michael Greenstone & Guojun He & Shanjun Li & Eric Yongchen Zou, 2021. "China’s War on Pollution: Evidence from the First 5 Years," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(2), pages 281-299.
    15. Eric Maskin & Yingyi Qian & Chenggang Xu, 2000. "Incentives, Information, and Organizational Form," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(2), pages 359-378.
    16. Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 867-893, March.
    17. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    18. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
    19. Guojun He & Shaoda Wang & Bing Zhang, 2020. "Watering Down Environmental Regulation in China," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2135-2185.
    20. Ruixue Jia & Masayuki Kudamatsu & David Seim, 2015. "Political Selection In China: The Complementary Roles Of Connections And Performance," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 631-668, August.
    21. Liu, Yongzheng & Zhang, Xiaoge, 2023. "Environmental regulation, political incentives, and mortality in China," European Journal of Political Economy, Elsevier, vol. 78(C).
    22. Patrick Francois & Francesco Trebbi & Kairong Xiao, 2023. "Factions in Nondemocracies: Theory and Evidence From the Chinese Communist Party," Econometrica, Econometric Society, vol. 91(2), pages 565-603, March.
    23. Chen, Yvonne Jie & Li, Pei & Lu, Yi, 2018. "Career concerns and multitasking local bureaucrats: Evidence of a target-based performance evaluation system in China," Journal of Development Economics, Elsevier, vol. 133(C), pages 84-101.
    24. Junyan Jiang, 2018. "Making Bureaucracy Work: Patronage Networks, Performance Incentives, and Economic Development in China," American Journal of Political Science, John Wiley & Sons, vol. 62(4), pages 982-999, October.
    25. Zheng, Siqi & Kahn, Matthew E. & Sun, Weizeng & Luo, Danglun, 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, Elsevier, vol. 47(C), pages 61-71.
    26. Matthew E. Kahn & Pei Li & Daxuan Zhao, 2015. "Water Pollution Progress at Borders: The Role of Changes in China's Political Promotion Incentives," American Economic Journal: Economic Policy, American Economic Association, vol. 7(4), pages 223-242, November.
    27. Raymond Fisman & Jing Shi & Yongxiang Wang & Weixing Wu, 2020. "Social Ties and the Selection of China's Political Elite," American Economic Review, American Economic Association, vol. 110(6), pages 1752-1781, June.
    28. Shih, Victor & Adolph, Christopher & Liu, Mingxing, 2012. "Getting Ahead in the Communist Party: Explaining the Advancement of Central Committee Members in China," American Political Science Review, Cambridge University Press, vol. 106(1), pages 166-187, February.
    29. repec:oup:econjl:v:129:y:2019:i:10:p:2888-2915. is not listed on IDEAS
    30. Yang Yao & Muyang Zhang, 2015. "Subnational leaders and economic growth: evidence from Chinese cities," Journal of Economic Growth, Springer, vol. 20(4), pages 405-436, December.
    31. Tu, Meng & Zhang, Bing & Xu, Jianhua & Lu, Fangwen, 2020. "Mass media, information and demand for environmental quality: Evidence from the “Under the Dome”," Journal of Development Economics, Elsevier, vol. 143(C).
    32. Jiang, Junyan & Zhang, Muyang, 2020. "Friends with benefits: Patronage networks and distributive politics in China," Journal of Public Economics, Elsevier, vol. 184(C).
    33. J. Lelieveld & J. S. Evans & M. Fnais & D. Giannadaki & A. Pozzer, 2015. "The contribution of outdoor air pollution sources to premature mortality on a global scale," Nature, Nature, vol. 525(7569), pages 367-371, September.
    34. Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Bochao & Wang, Hang & Wang, Xianbin, 2024. "Innovation Like China: Evidence from Chinese Local Officials' Promotions," China Economic Review, Elsevier, vol. 86(C).
    2. Chen, Shuo & Qiao, Xue & Zhu, Zhitao, 2021. "Chasing or cheating? Theory and evidence on China's GDP manipulation," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 657-671.
    3. Liu, Yongzheng & Zhang, Xiaoge, 2023. "Environmental regulation, political incentives, and mortality in China," European Journal of Political Economy, Elsevier, vol. 78(C).
    4. Shiyu Bo, 2021. "Environmental Regulations, Political Incentives and Local Economic Activities: Evidence from China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(3), pages 812-835, June.
    5. Chen, Jidong & Shi, Xinzheng & Zhang, Ming-ang & Zhang, Sihan, 2024. "Centralization of environmental administration and air pollution: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    6. Taipeng LI & Lorenzo Trimarchi & Rui XIE & Guohao YANG, 2023. "The Unintended Consequences of Trade Protection on the Environment," Working Papers ECARES 2023-16, ULB -- Universite Libre de Bruxelles.
    7. Hanming Fang & Ming Li & Zenan Wu, 2022. "Tournament-Style Political Competition and Local Protectionism: Theory and Evidence from China," NBER Working Papers 30780, National Bureau of Economic Research, Inc.
    8. Wu, Mingqin & Cao, Xun, 2021. "Greening the career incentive structure for local officials in China: Does less pollution increase the chances of promotion for Chinese local leaders?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    9. Fugang Gao & Huub Ploegmakers & Erwin van der Krabben & Xiaoping Shi, 2022. "Impacts of the political incentive for environmental protection on industrial land supply: Evidence from the cadre evaluation system reform in China," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 1001-1025, August.
    10. Chang Xue & Xiaoyu Zhang, 2024. "Promotion prospects and policy choice: evidence from the land market in China," Public Choice, Springer, vol. 200(1), pages 119-147, July.
    11. Yu Bai & Yanjun Li, 2022. "Political tournaments and regional growth‐enhancing policies: Evidence from Chinese prefectures," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1358-1385, November.
    12. Chen, Qianmiao & Huang, Qingyang & Liu, Chang & Wang, Peng, 2022. "Career incentives of local leaders and crisis response: A case study of COVID-19 lockdowns in China," European Journal of Political Economy, Elsevier, vol. 75(C).
    13. Yang Shen & Jing Wu & Shuping Wu, 2022. "City‐chief turnover and place‐based policy change: Evidence from China," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1296-1328, November.
    14. Zhang, Muyang & Zhou, Guangsu & Fan, Gang, 2020. "Political Control and Economic Inequality: Evidence from Chinese Cities," China Economic Review, Elsevier, vol. 61(C).
    15. Suárez Serrato, Juan Carlos & Wang, Xiao Yu & Zhang, Shuang, 2019. "The limits of meritocracy: Screening bureaucrats under imperfect verifiability," Journal of Development Economics, Elsevier, vol. 140(C), pages 223-241.
    16. Pi‐han Tsai & Jianliang Ye, 2018. "The Lame‐Duck Effect and Fiscal Policy in China," The Developing Economies, Institute of Developing Economies, vol. 56(3), pages 197-220, September.
    17. Yao, Yao & Li, Xue & Smyth, Russell & Zhang, Lin, 2022. "Air pollution and political trust in local government: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    18. You, Chen & Cifuentes-Faura, Javier & Liu, Xiaoqian & Wu, Jinqun, 2024. "Can the government environmental vertical reform reduce air pollution? A quasi-natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 947-963.
    19. Jianxin Wu & Ziwei Feng & Chunbo Ma, 2024. "Promotion Incentives and Environmental Regulation: Evidence from China’s Environmental One-Vote Veto Evaluation Regime," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 257-286, January.
    20. Shi, Daqian & Yang, Zhijiu & Ji, Hongkun, 2022. "Energy target-based responsibility system and corporate energy efficiency: Evidence from the eleventh Five Year Plan in China," Energy Policy, Elsevier, vol. 169(C).

    More about this item

    Keywords

    Promotion incentive; Air pollution; Local government policy;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    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:poleco:v:81:y:2024:i:c:s0176268024000065. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/inca/505544 .

    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.