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Technology, enforcement resources allocation, and environmental performance

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  • Mi, Shuying
  • Zhang, Bing
  • Liu, Mengdi

Abstract

The increasing use of monitoring technologies raises important questions about their impact on regulatory strategies and enforcement outcomes. This paper studies the adoption of the Continuous Emission Monitoring System (CEMS), a real-time pollution tracking technology in China. Using firm-level data, we find that CEMS adoption reduces corporate sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions by 16.8% and 15.8%, respectively. Mechanism analyses indicate that CEMS-generated exceedance signals increase the observability of violations and success rate of inspections. We find no evidence that CEMS adoption crowds out enforcement or increases emissions among nearby non-CEMS firms. These findings suggest that monitoring technologies can enhance regulatory precision, which is important for the extension of new monitoring technologies.

Suggested Citation

  • Mi, Shuying & Zhang, Bing & Liu, Mengdi, 2026. "Technology, enforcement resources allocation, and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:jeeman:v:139:y:2026:i:c:s0095069626001087
    DOI: 10.1016/j.jeem.2026.103388
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