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Land use supervision and environmental pollution: multitasking bureaucrats and spillovers across regulations

Author

Listed:
  • Haichao Fan
  • Guanchun Liu
  • Huanhuan Wang
  • Xiaoxue Zhao

Abstract

This article provides evidence on the strong spillover effects of land use regulations on environmental regulation enforcement in China. We find that the establishment of China’s Land Supervision Bureaus, which effectively reduced land use violations, led to a significant relaxation of environmental regulations by local officials and an increase in cities’ pollution intensity and overall pollution. In addition, the detrimental environmental effects of land use supervision are particularly strong among cities governed by officials with stronger promotion incentives. The results are consistent with a model in which multitasking local officials loosen environmental regulations to meet GDP growth targets in response to reduced industrial land supply. We further support the model by documenting land use supervision’s negative effect on new firm entries but significantly positive effect on incumbent firms’ outputs. (JEL D73, H77, P26, Q53, R52)

Suggested Citation

  • Haichao Fan & Guanchun Liu & Huanhuan Wang & Xiaoxue Zhao, 2025. "Land use supervision and environmental pollution: multitasking bureaucrats and spillovers across regulations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 41(2), pages 402-454.
    • Handle: RePEc:oup:jleorg:v:41:y:2025:i:2:p:402-454.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewad028
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    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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