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Informed Enforcement: Lessons from Pollution Monitoring in China

Author

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  • Sebastian Axbard
  • Zichen Deng

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 whether real-time monitoring of policy outcomes affects the enforcement of existing regulations. Using assignment criteria established by the central government and new georeferenced data on local enforcement activities, we show that monitoring (i) increases enforcement against local firms, (ii) improves the targeting of enforcement, and (iii) 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

  • Sebastian Axbard & Zichen Deng, 2024. "Informed Enforcement: Lessons from Pollution Monitoring in China," American Economic Journal: Applied Economics, American Economic Association, vol. 16(1), pages 213-252, January.
    • Handle: RePEc:aea:aejapp:v:16:y:2024:i:1:p:213-52
    DOI: 10.1257/app.20210386
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    More about this item

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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