How Political Turbulence Changes Disincentives of Environmental Protection: Evidence from the Crime Crackdown in Chongqing

Juncheng Feng (), Kezhong Zhang () and Jiangnan Zhu ()
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Juncheng Feng: Xiamen University
Kezhong Zhang: Huazhong University of Science and Technology
Jiangnan Zhu: The University of Hong Kong

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2016, vol. 129, issue 3, No 12, 1191 pages

Abstract: Abstract Institutional disincentives often discourage major actors, such as politicians, corporate leaders, and the public, from taking practical steps to protect the environment in China. By using the crackdown on crime in the Chinese megacity of Chongqing as a case study, we argue that despite the strength of these disincentives, they are nevertheless highly susceptible to changes in the macro political environment, which can temporarily alter the regular preference order of these major political-economic actors and reduce industrial pollution. We employed the difference-in-differences approach and observed that the quality of surface water in Chongqing improved during the anticrime campaign because of reduced industrial wastewater discharge. However, after the campaign, the political atmosphere relaxed and the surface water quality declined. These findings suggest that reforming the institutions that shape the incentives of the major actors in environmental protection is critical to improving environmental protection in the long term.

Keywords: Institutional disincentive; Crime crackdown; Difference in differences; Surface water quality; Business-government connections (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/s11205-015-1155-7

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