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Informed Enforcement: Lessons from Pollution Monitoring in China

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  • Axbard, Sebastian
  • Deng, Zichen

Abstract

Government regulations are often imperfectly enforced by public officials. In this study, we exploit the introduction of air pollution monitors in China to investigate if real-time monitoring of policy outcomes affects the enforcement of existing regulations. Using assignment criteria established by the central government and new geo-referenced data on local enforcement activities, we show that monitoring: 1) increases enforcement against local firms, 2) improves the targeting of enforcement, and 3) reduces aggregate pollution. These effects are driven by officials facing performance incentives and are stronger when there is limited scope for data manipulation, suggesting that real-time monitoring improves top-down accountability.

Suggested Citation

  • Axbard, Sebastian & Deng, Zichen, 2020. "Informed Enforcement: Lessons from Pollution Monitoring in China," CEPR Discussion Papers 15622, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15622
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    More about this item

    Keywords

    Accountability; Regulatory enforcement; Pollution; China;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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