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Does interagency power consolidation lead to better governance?

Author

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  • Long, Xianling
  • Ji, Xi
  • Wu, Guowei
  • Zong, Xiaoxue
  • Su, Pinyi
  • Luo, Xuanyuan

Abstract

The fragmentation of authority plagues the effectiveness of governance in many fields such as education, health care services, and environmental governance all around the world. It is disputed whether consolidating governance powers into one dedicated agency can improve governance by eliminating coordination challenges. Excluding potential negative confounding effects induced by agency size, we find that the impacts of interagency power consolidation on environmental governance are complex and differ by pollutants and region in China. Consolidating power in environmental governance leads to a reduction in local air pollution (PM2.5) and modest mitigation of greenhouse gas emissions (CO2). However, water pollution does not exhibit the same effect due to cross-jurisdictional externality. Furthermore, we discover that power consolidation has a more pronounced effect on highly developed or highly polluted cities. Power consolidation of environmental governance in China is estimated to save $6.23 billion dollars annually through the prevention of deaths and $1.36 billion annually through reduced healthcare costs.

Suggested Citation

  • Long, Xianling & Ji, Xi & Wu, Guowei & Zong, Xiaoxue & Su, Pinyi & Luo, Xuanyuan, 2026. "Does interagency power consolidation lead to better governance?," Structural Change and Economic Dynamics, Elsevier, vol. 78(C), pages 314-325.
  • Handle: RePEc:eee:streco:v:78:y:2026:i:c:p:314-325
    DOI: 10.1016/j.strueco.2026.03.005
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