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Incentivizing China’s Urban Mayors to Mitigate Pollution Externalities: The Role of the Central Government and Public Environmentalism

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  • Siqi Zheng
  • Matthew E. Kahn
  • Weizeng Sun
  • Danglun Luo

Abstract

China’s extremely high levels of urban air, water and greenhouse gas emissions levels pose local and global environmental challenges. China’s urban leaders have substantial influence and discretion over the evolution of economic activity that generates such externalities. This paper examines the political economy of urban leaders’ incentives to tackle pollution issues. Based on a principal-agent framework, we present evidence consistent with the hypothesis that both the central government and the public are placing pressure on China’s urban leaders to mitigate externalities. Such “pro-green” incentives suggest that many of China’s cities could enjoy significant environmental progress in the near future.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18872.

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Date of creation: Mar 2013
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Handle: RePEc:nbr:nberwo:18872

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. My Harvard Business Review Blog Piece on China's Bullet Trains and a History of My Economic Thought About China
    by Matthew Kahn in Environmental and Urban Economics on 2013-04-08 15:50:00
  2. Exploring Green Cities in China
    by Matthew Kahn in Urbanization Project on 2013-04-09 23:17:09
  3. My Recent Political Economy Work
    by Matthew Kahn in Environmental and Urban Economics on 2013-05-08 00:54:00
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Cited by:
  1. Matthew E. Kahn & Pei Li & Daxuan Zhao, 2013. "Pollution Control Effort at China’s River Borders: When Does Free Riding Cease?," NBER Working Papers 19620, National Bureau of Economic Research, Inc.
  2. Siqi Zheng & Cong Sun & Ye Qi & Matthew E. Kahn, 2013. "The Evolving Geography of China’s Industrial Production: Implications for Pollution Dynamics and Urban Quality of Life," NBER Working Papers 19624, National Bureau of Economic Research, Inc.

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