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Order! the border: Multitasking, air pollution regulation and local government responses

Author

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  • Hong, Hai
  • Huang, Yongbin

Abstract

This paper presents new evidence on how multitasking local governments' strategic responses to top-down environmental regulations can induce pollution in border areas. Using the implementation of the Air Pollution Prevention and Control Action Plan in China as a quasi-experiment, we exploit a difference-in-differences model and find that this policy induces the border effect of air pollution. We further reveal a salient window dressing behavior of local governments, which air pollution in border counties reduces significantly as the high-stakes inspection time neared, followed by a dramatic increase soon after the inspection. These results are driven by local government responses to incomprehensive air quality monitor stations installed in non-border counties, and local officials with strong promotion incentives, who exert strict regulations in non-border counties while varied regulations in border counties over time to cater for the multitasking of economic growth and air quality targets.

Suggested Citation

  • Hong, Hai & Huang, Yongbin, 2025. "Order! the border: Multitasking, air pollution regulation and local government responses," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:jeeman:v:131:y:2025:i:c:s0095069625000191
    DOI: 10.1016/j.jeem.2025.103135
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