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Informed Enforcement: Lessons from Pollution Monitoring in China

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  • Axbard, Sebastian
  • Deng, Zichen

Abstract

Government regulations are often imperfectly enforced by public officials. In this study, we exploit the introduction of air pollution monitors in China to investigate if real-time monitoring of policy outcomes affects the enforcement of existing regulations. Using assignment criteria established by the central government and new geo-referenced data on local enforcement activities, we show that monitoring: 1) increases enforcement against local firms, 2) improves the targeting of enforcement, and 3) reduces aggregate pollution. These effects are driven by officials facing performance incentives and are stronger when there is limited scope for data manipulation, suggesting that real-time monitoring improves top-down accountability.

Suggested Citation

  • Axbard, Sebastian & Deng, Zichen, 2020. "Informed Enforcement: Lessons from Pollution Monitoring in China," CEPR Discussion Papers 15622, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:15622
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    2. Robert Metcalfe & Sefi Roth, 2025. "Making the Invisible Visible: The Impact of Revealing Indoor Air Pollution on Behavior and Welfare," Framed Field Experiments 00819, The Field Experiments Website.
    3. Coury, Michael & Falconer, Liam & La Nauze, Andrea, 2024. "Wildfire smoke and private provision of public air-quality monitoring," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    4. Wang, Huanhuan & Zhang, Zhiqiang & Zhao, Xiaoxue, 2025. "Trade-linked pandemic, enforcement gap, and pollution," China Economic Review, Elsevier, vol. 91(C).
    5. Jin, Xin, 2025. "Regulation automation and green innovation: Evidence from China's industrial firms," International Review of Economics & Finance, Elsevier, vol. 99(C).
    6. 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.
    7. Li, Pei & Lu, Yi & Peng, Lu & Wang, Jin, 2024. "Information, incentives, and environmental governance: Evidence from China’s ambient air quality standards," Journal of Environmental Economics and Management, Elsevier, vol. 128(C).
    8. Hong, Hai & Huang, Yongbin, 2025. "Order! the border: Multitasking, air pollution regulation and local government responses," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    9. La Nauze, Andrea & Tan, Tze Yong, 2024. "A Comment on "Informed Enforcement: Lessons from Pollution Monitoring in China" by Sebastian Axbard and Zichen Deng," I4R Discussion Paper Series 144, The Institute for Replication (I4R).
    10. Bi, Ruigang & Kou, Zonglai & Zhao, Cheng & Zhong, Yiwen & Zhou, Min, 2024. "Information disclosure and pollution reduction: evidence from environmental NGO monitoring in China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1459-1473.
    11. Zhiwei Yu & Jinghui Hao & Wei Si, 2025. "Enhancing the Local Enforcement of Straw‐Burning Regulation by Digital Technology: evidence From China," Agricultural Economics, International Association of Agricultural Economists, vol. 56(4), pages 604-621, July.
    12. Xi Liu & Yinhe Liang, 2026. "Information, Distance and Firms’ Responses: Evidence from Polluting Monitoring in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 89(2), pages 1-44, February.
    13. 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).
    14. Jinli Wang & Qiyong Xiao & Xin Han, 2026. "Curbing Corporate Environmental, Social and Governance Greenwashing Through Centralisation of Environmental Monitoring: Evidence From China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(1), pages 657-694, March.
    15. Liu, Xi & Liang, Yinhe, 2025. "Pollution information and intercity investment flows: Evidence from China's air quality monitoring program," Energy Economics, Elsevier, vol. 149(C).
    16. Metcalfe, Robert & Roth, Sefi, 2025. "Making the invisible visible: the impact of revealing indoor air pollution on behavior and welfare," LSE Research Online Documents on Economics 128514, London School of Economics and Political Science, LSE Library.
    17. Christofzik, Désirée I. & Märtz, Oliver, 2026. "Distance matters: Geographical proximity and fiscal rules enforcement," ZEW Discussion Papers 26-008, ZEW - Leibniz Centre for European Economic Research.
    18. Shu, Li & Wang, Chunhua & Wang, Wei, 2025. "Vehicle exhaust standards and urban air quality in China," Journal of Development Economics, Elsevier, vol. 172(C).
    19. Wang, Jinli, 2024. "Does environmental decentralization promote corporate ESG performance? Evidence from China," Innovation and Green Development, Elsevier, vol. 3(4).
    20. Wang, Zhiwei & Zhang, Xianfeng & Ding, Chenxin & Sun, Hui, 2025. "Can digital environmental monitoring alleviate environmental inequality? Evidence from ambient air quality standards in China," Energy Policy, Elsevier, vol. 207(C).
    21. Chen, Ying & Wu, Wenjie & Yun, Yanwen, 2025. "The geography of pollution regulation and productivity," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    22. 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).

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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

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