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Performance measurability, local government’s incentives, and regional air pollution reduction

Author

Listed:
  • Shen, Jianfu
  • Peng, Daoju
  • Hui, Eddie C.M.
  • Fan, Kwok Yuen

Abstract

This study examines the impact of performance measurability on the effectiveness of local governments in mitigating air pollution. Utilizing a difference-in-differences (DiD) approach, which leverages the 2013 Air Pollution Prevention and Control Action Plan in China, this study finds a substantial and negative correlation between performance measurability on PM2.5 concentration. Mechanism analysis finds that the reduction in PM2.5 concentration is more pronounced in cities managed by leaders with stronger political promotion incentives (career concern incentive), and in those that are more reliant on financial transfers from the central government (financial incentive). Further analysis highlights the role of performance measurability in prompting genuine governmental efforts in environmental conservation. Our study emphasizes the importance of transparent reporting of environmental data in advancing sustainable development in developing countries.

Suggested Citation

  • Shen, Jianfu & Peng, Daoju & Hui, Eddie C.M. & Fan, Kwok Yuen, 2025. "Performance measurability, local government’s incentives, and regional air pollution reduction," World Development, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:wdevel:v:193:y:2025:i:c:s0305750x2500141x
    DOI: 10.1016/j.worlddev.2025.107056
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    More about this item

    Keywords

    Environmental policy; Performance measurability; Air pollution; Local governance; Incentive schemes;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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