From boardroom to policy: the role of provincial leaders' corporate experience in regional green development

Wenjie Hao, Lulin Li, Qiwen Dai and Yanqiao Zheng

Economic Analysis and Policy, 2025, vol. 87, issue C, 1379-1394

Abstract: Local officials with corporate experience are often seen as more economically effective; does this background place undue emphasis on economic expansion at the expense of green development? Using data from 30 provinces in China from 1998 to 2019, this study examines the impacts and mechanisms of corporate experience among provincial leaders on carbon emission intensity. The findings are as follows: (1) Provincial leaders with corporate experience significantly increase carbon emission intensity in their regions, a result that remains robust to various tests and controls for endogeneity. Party secretaries exhibit a stronger sensitivity to this effect than governors. (2) Mechanism tests reveal that provincial leaders with corporate experience contribute to higher carbon emission intensity through two main channels: prioritizing short-term GDP growth over green development and exacerbating resource distortion. (3) Further analysis indicates that when performance evaluations shift to prioritize green development, the negative effect of corporate experience on carbon emission intensity is mitigated. Instead, corporate experience is linked to a reduction in regional carbon emissions when evaluation criteria focus on environmental objectives. Additionally, this effect is more pronounced for leaders with higher promotion expectations, shorter tenures, or those promoted from energy sectors or central state-owned enterprises. (4) Heterogeneity analysis shows that the impact of corporate experience on carbon emissions intensity is more pronounced in regions with abundant energy resources, in central and western China, and in areas facing significant economic pressure from local governments. Our study enriches research on the relationship between provincial leaders' work experiences and regional green development, offering theoretical insights into governance structures and official selection systems that are essential for achieving carbon peak and neutrality targets.

Keywords: Provincial leaders; Corporate experience; Carbon emission intensity; Performance evaluation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:1379-1394

DOI: 10.1016/j.eap.2025.07.006

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