IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v69y2025i2d10.1007_s00181-025-02745-w.html
   My bibliography  Save this article

Dynamic responses of carbon emissions to central environmental protection inspection in China

Author

Listed:
  • Sitong Pan

    (Shanghai Jiao Tong University)

Abstract

Top-down environmental protection inspections have been conducted to promote sustainable development in many developing countries over the past decade. However, the magnitude and pattern of their impacts on carbon dioxide (CO2) emission intensity have not been precisely investigated. By exploiting daily variations in CO2 emissions with a generalized difference-in-differences strategy across 31 provinces and 1461 days, this study discerns a clear temporal pattern for the CEPI effect on CO2 emissions. In the two months before the onsite inspection, CO2 emissions decreased by approximately 2.5%. During the one-month onsite inspection period, CO2 emissions decreased by approximately 2.9%. This impact persists to a slight degree in the targeted area after the onsite inspection. The reduction effect is primarily attributed to the power and industry sectors, with an earlier manifestation in the northern area. The channels underlying this association are political-incentive-driven energy adjustment. Furthermore, this study identifies a similar impact pattern on the nighttime light levels, the effectiveness of certain enforcement measures associated with the CEPI, the slight response of CO2 emissions in neighboring provinces during the CEPI, and strengthened positive spillover effects of CO2 emissions across provinces after the CEPI. These findings shed light on the role of top-down environmental inspection in sustainable development and its potential limitations.

Suggested Citation

  • Sitong Pan, 2025. "Dynamic responses of carbon emissions to central environmental protection inspection in China," Empirical Economics, Springer, vol. 69(2), pages 661-713, August.
  • Handle: RePEc:spr:empeco:v:69:y:2025:i:2:d:10.1007_s00181-025-02745-w
    DOI: 10.1007/s00181-025-02745-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00181-025-02745-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s00181-025-02745-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Mengdi & Tan, Ruipeng & Zhang, Bing, 2021. "The costs of “blue sky”: Environmental regulation, technology upgrading, and labor demand in China," Journal of Development Economics, Elsevier, vol. 150(C).
    2. Isis Durrmeyer, 2022. "Winners and Losers: the Distributional Effects of the French Feebate on the Automobile Market," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1414-1448.
    3. Zifang Ding & Xiang Gao & Xuesong Qian & Huanhuan Wang, 2022. "Governmental inspection and local legislation on environmental protection: Evidence from China," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 728-763, July.
    4. Zhang, Bing & Chen, Xiaolan & Guo, Huanxiu, 2018. "Does central supervision enhance local environmental enforcement? Quasi-experimental evidence from China," Journal of Public Economics, Elsevier, vol. 164(C), pages 70-90.
    5. Wang, Kunlun & Zheng, Leven J. & Zhang, Justin Zuopeng & Yao, Hongjiang, 2022. "The impact of promoting new energy vehicles on carbon intensity: Causal evidence from China," Energy Economics, Elsevier, vol. 114(C).
    6. Joseph S. Shapiro & Reed Walker, 2018. "Why Is Pollution from US Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade," American Economic Review, American Economic Association, vol. 108(12), pages 3814-3854, December.
    7. Chen, Yvonne Jie & Li, Pei & Lu, Yi, 2018. "Career concerns and multitasking local bureaucrats: Evidence of a target-based performance evaluation system in China," Journal of Development Economics, Elsevier, vol. 133(C), pages 84-101.
    8. Esther Duflo & Michael Greenstone & Rohini Pande & Nicholas Ryan, 2018. "The Value of Regulatory Discretion: Estimates From Environmental Inspections in India," Econometrica, Econometric Society, vol. 86(6), pages 2123-2160, November.
    9. Wu, JunJie & Segerson, Kathleen & Wang, Chunhua, 2023. "Is environmental regulation the answer to pollution problems in urbanizing economies?," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    10. Xu, Aiting & Song, Miaoyuan & Wu, Yunguang & Luo, Yifan & Zhu, Yuhan & Qiu, Keyang, 2024. "Effects of new urbanization on China's carbon emissions: A quasi-natural experiment based on the improved PSM-DID model," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    11. Gilbert E. Metcalf & James H. Stock, 2023. "The Macroeconomic Impact of Europe's Carbon Taxes," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(3), pages 265-286, July.
    12. Genia Kostka, 2016. "Command without control: The case of China's environmental target system," Regulation & Governance, John Wiley & Sons, vol. 10(1), pages 58-74, March.
    13. Ellen Greaves & Iftikhar Hussain & Birgitta Rabe & Imran Rasul, 2023. "Parental Responses to Information about School Quality: Evidence from Linked Survey and Administrative Data," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2334-2402.
    14. Joseph S. Shapiro, 2016. "Trade Costs, CO2, and the Environment," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 220-254, November.
    15. Olivier Deschênes & Michael Greenstone & Joseph S. Shapiro, 2017. "Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program," American Economic Review, American Economic Association, vol. 107(10), pages 2958-2989, October.
    16. Zhang, Pengfeng & Gu, Haiying, 2023. "Potential policy coordination: Can energy intensity targets affect energy poverty?," Energy Economics, Elsevier, vol. 126(C).
    17. Wang, Shanyong & Zhang, Rongwei & Wan, Liang & Chen, Jiusong, 2023. "Has Central Government Environmental Protection Interview Improved Air Quality in China?," Ecological Economics, Elsevier, vol. 206(C).
    18. Wayne B. Gray & Jay P. Shimshack, 2011. "The Effectiveness of Environmental Monitoring and Enforcement: A Review of the Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 3-24, Winter.
    19. Qinren Shi & Bo Zheng & Yixuan Zheng & Dan Tong & Yang Liu & Hanchen Ma & Chaopeng Hong & Guannan Geng & Dabo Guan & Kebin He & Qiang Zhang, 2022. "Co-benefits of CO2 emission reduction from China’s clean air actions between 2013-2020," Nature Communications, Nature, vol. 13(1), pages 1-8, December.
    20. Shangrong Jiang & Yuze Li & Quanying Lu & Yongmiao Hong & Dabo Guan & Yu Xiong & Shouyang Wang, 2021. "Policy assessments for the carbon emission flows and sustainability of Bitcoin blockchain operation in China," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    21. Aksoy, Cevat Giray & Tumen, Semih, 2021. "Local Governance Quality and the Environmental Cost of Forced Migration," Journal of Development Economics, Elsevier, vol. 149(C).
    22. Joshua Linn & Kristen McCormack, 2019. "The roles of energy markets and environmental regulation in reducing coal‐fired plant profits and electricity sector emissions," RAND Journal of Economics, RAND Corporation, vol. 50(4), pages 733-767, December.
    23. Zhu Liu & Philippe Ciais & Zhu Deng & Ruixue Lei & Steven J. Davis & Sha Feng & Bo Zheng & Duo Cui & Xinyu Dou & Biqing Zhu & Rui Guo & Piyu Ke & Taochun Sun & Chenxi Lu & Pan He & Yuan Wang & Xu Yue , 2020. "Author Correction: Near-real-time monitoring of global CO2 emissions reveals the effects of the COVID-19 pandemic," Nature Communications, Nature, vol. 11(1), pages 1-1, December.
    24. Shiqi Guo, 2021. "How Does Straw Burning Affect Urban Air Quality in China?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 1122-1140, May.
    25. Anna Papp & Douglas Almond & Shuang Zhang, 2023. "Bitcoin and Carbon Dioxide Emissions: Evidence from Daily Production Decisions," NBER Working Papers 31745, National Bureau of Economic Research, Inc.
    26. Panle Jia Barwick & Shanjun Li & Liguo Lin & Eric Yongchen Zou, 2024. "From Fog to Smog: The Value of Pollution Information," American Economic Review, American Economic Association, vol. 114(5), pages 1338-1381, May.
    27. Heran Zheng & Yin Long & Richard Wood & Daniel Moran & Zengkai Zhang & Jing Meng & Kuishuang Feng & Edgar Hertwich & Dabo Guan, 2022. "Author Correction: Ageing society in developed countries challenges carbon mitigation," Nature Climate Change, Nature, vol. 12(6), pages 593-593, June.
    28. Michael Greenstone & Guojun He & Shanjun Li & Eric Yongchen Zou, 2021. "China’s War on Pollution: Evidence from the First 5 Years," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(2), pages 281-299.
    29. Jan Petzold & Tom Hawxwell & Kerstin Jantke & Eduardo Gonçalves Gresse & Charlotta Mirbach & Idowu Ajibade & Suruchi Bhadwal & Kathryn Bowen & Alexandra Paige Fischer & Elphin Tom Joe & Christine J. K, 2023. "A global assessment of actors and their roles in climate change adaptation," Nature Climate Change, Nature, vol. 13(11), pages 1250-1257, November.
    30. Zhenhua Zhang & Guoxing Zhang & Yi Hu & Yating Jiang & Cheng Zhou & Jiahui Ma, 2023. "The evolutionary mechanism of haze collaborative governance: novel evidence from a tripartite evolutionary game model and a case study in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    31. Federico Belotti & Gordon Hughes & Andrea Piano Mortari, 2017. "Spatial panel-data models using Stata," Stata Journal, StataCorp LLC, vol. 17(1), pages 139-180, March.
    32. Tianyang Lei & Daoping Wang & Xiang Yu & Shijun Ma & Weichen Zhao & Can Cui & Jing Meng & Shu Tao & Dabo Guan, 2023. "Global iron and steel plant CO2 emissions and carbon-neutrality pathways," Nature, Nature, vol. 622(7983), pages 514-520, October.
    33. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Yang, Xiaodong, 2023. "Central inspections of environmental protection and transition for low-carbon Chinese cities: Policy intervention and mechanism analysis," Energy Economics, Elsevier, vol. 124(C).
    34. Michael Greenstone & Guojun He & Shanjun Li & Eric Zou, 2021. "China’s War on Pollution: Evidence from the First Five Years," NBER Working Papers 28467, National Bureau of Economic Research, Inc.
    35. Agarwal, Sumit & Han, Yajie & Qin, Yu & Zhu, Hongjia, 2023. "Disguised pollution: Industrial activities in the dark," Journal of Public Economics, Elsevier, vol. 223(C).
    36. Papp, Anna & Almond, Douglas & Zhang, Shuang, 2023. "Bitcoin and carbon dioxide emissions: Evidence from daily production decisions," Journal of Public Economics, Elsevier, vol. 227(C).
    37. Baghdadi, Leila & Martinez-Zarzoso, Inmaculada & Zitouna, Habib, 2013. "Are RTA agreements with environmental provisions reducing emissions?," Journal of International Economics, Elsevier, vol. 90(2), pages 378-390.
    38. Mark T. Buntaine & Michael Greenstone & Guojun He & Mengdi Liu & Shaoda Wang & Bing Zhang, 2024. "Does the Squeaky Wheel Get More Grease? The Direct and Indirect Effects of Citizen Participation on Environmental Governance in China," American Economic Review, American Economic Association, vol. 114(3), pages 815-850, March.
    39. Juliano Assunção & Robert McMillan & Joshua Murphy & Eduardo Souza-Rodrigues, 2023. "Optimal Environmental Targeting in the Amazon Rainforest," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(4), pages 1608-1641.
    40. Lint Barrage, 2020. "Optimal Dynamic Carbon Taxes in a Climate–Economy Model with Distortionary Fiscal Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 1-39.
    41. Xie, Tingting & Yuan, Ye, 2023. "Go with the wind: Spatial impacts of environmental regulations on economic activities in China," Journal of Development Economics, Elsevier, vol. 164(C).
    42. Qian, Xuesong & Ding, Hai & Ding, Zifang, 2023. "Governmental inspection and firm environmental protection expenditure: Evidence from China," Economic Modelling, Elsevier, vol. 123(C).
    43. Guojun He & Shaoda Wang & Bing Zhang, 2020. "Watering Down Environmental Regulation in China," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2135-2185.
    44. Julius J. Andersson, 2019. "Carbon Taxes and CO2 Emissions: Sweden as a Case Study," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 1-30, November.
    45. Cao, Jing & Ho, Mun S. & Ma, Rong & Teng, Fei, 2021. "When carbon emission trading meets a regulated industry: Evidence from the electricity sector of China," Journal of Public Economics, Elsevier, vol. 200(C).
    46. Xie, Tingting & Yuan, Ye & Zhang, Hui, 2023. "Information, awareness, and mental health: Evidence from air pollution disclosure in China," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Zheng, 2025. "Polluting my downwind neighbor: Evidence of interjurisdictional free riding from air polluter locations in China," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    2. Li, Pei & Wu, JunJie & Xu, Wenchao, 2024. "The impact of industrial sulfur dioxide emissions regulation on agricultural production in China †," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    3. Chen, Jidong & Shi, Xinzheng & Zhang, Ming-ang & Zhang, Sihan, 2024. "Centralization of environmental administration and air pollution: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    4. Wang, Ruqi & Xu, Pei & Gao, Honggui, 2024. "Rectifying local governments’ strategic environmental enforcement: Can refined air pollution monitoring enhance local air quality in China?," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 978-995.
    5. You, Chen & Cifuentes-Faura, Javier & Liu, Xiaoqian & Wu, Jinqun, 2024. "Can the government environmental vertical reform reduce air pollution? A quasi-natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 947-963.
    6. Liu, Yazhou & Cheng, Yunqian & Li, Tianshu & Ni, Jinlan & Norman, Stephen, 2024. "Information disclosure and public participation in environmental management: Evidence from the river chief system in China," China Economic Review, Elsevier, vol. 85(C).
    7. Qi, Yu & Yin, Aoxue & Chen, Jianwei & Yang, Chunfei & Zhan, Pengyu, 2024. "Motivating for environmental protection: Evidence from county officials in China," World Development, Elsevier, vol. 184(C).
    8. Tang, Lianzhou & Xu, Wenli, 2025. "Patronage and pollution," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    9. Pan, Junyu & Du, Lizhao & Wu, Haitao & Liu, Xiaoqian, 2024. "Does environmental law enforcement supervision improve corporate carbon reduction performance? Evidence from environmental protection interview," Energy Economics, Elsevier, vol. 132(C).
    10. Jin, Xin, 2025. "Regulation automation and green innovation: Evidence from China's industrial firms," International Review of Economics & Finance, Elsevier, vol. 99(C).
    11. Salvo, Alberto & Tang, Qu & Yang, Jing & Yin, Peng & Zhou, Maigeng, 2024. "Fine-particulate air pollution and behaviorally inclusive mortality impacts of China’s winter heating policy, 2013–2018," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    12. Agarwal, Sumit & Han, Yajie & Qin, Yu & Zhu, Hongjia, 2023. "Disguised pollution: Industrial activities in the dark," Journal of Public Economics, Elsevier, vol. 223(C).
    13. Wang, Huanhuan & Zhang, Zhiqiang & Zhao, Xiaoxue, 2025. "Trade-linked pandemic, enforcement gap, and pollution," China Economic Review, Elsevier, vol. 91(C).
    14. Shi, Xinzheng & Zhang, Ming-ang, 2023. "Waste import and air pollution: Evidence from China's waste import ban," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    15. Shen, Yanyan & Guo, Feng & Li, Zhen, 2024. "Unintended effects of tax-sharing adjustments on firms' pollution emissions: Evidence from China," Energy Economics, Elsevier, vol. 139(C).
    16. Tingting Xie & Yong Wang & Ye Yuan, 2024. "Health Benefits from Improved Air Quality: Evidence from Pollution Regulations in China’s “ $$2{+}26$$ 2 + 26 ” Cities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(5), pages 1175-1221, May.
    17. Zhang, Ming-ang & Lu, Shuling & Zhang, Sihan & Bai, Yanfeng, 2023. "The unintended consequence of minimum wage hikes: Evidence based on firms' pollution emission," Energy Economics, Elsevier, vol. 125(C).
    18. Li, Yue & Yu, Haowei & Zhang, Peng, 2025. "Get the real boss in position: Examining the environmental effect of ‘shared environmental accountability’ in China," Energy Economics, Elsevier, vol. 141(C).
    19. Martinsson, Gustav & Sajtos, László & Strömberg, Per & Thomann, Christian, 2022. "Carbon Pricing and Firm-Level CO2 Abatement: Evidence from a Quarter of a Century-Long Panel," Misum Working Paper Series 2022-10, Stockholm School of Economics, Mistra Center for Sustainable Markets (Misum).
    20. Du, Kerui & Liu, Xueyue & Zhao, Cheng, 2023. "Environmental regulation mitigates energy rebound effect," Energy Economics, Elsevier, vol. 125(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:69:y:2025:i:2:d:10.1007_s00181-025-02745-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.