Incentives and Outcomes: China's Environmetal Policy
Published By: Institute of Real Estates Studies | Published Date: February , 2013Using 2000-2009 data, the report finds that, while spending on environmental infrastructure has visible positive environmental impact, city spending is strongly tilted towards transportation infrastructure. Investment in transportation infrastructure correlates strongly with both real GDP growth, a measure of tangible economic growth relevant to city-level Party and government cadres’ promotion odds, and with land prices, which affect city governments’ revenues from land lease sales. In contrast, city governments’ spending on environmental improvements is at best uncorrelated with cadres’ promotion odds, and is uncorrelated with local GDP growth and land prices. These findings suggest that, were environmental quality explicitly linked to a cadre’s chance of promotion, or were environmental quality to affect land prices substantially, city-level public investment in environmental improvement would
rise.
Author(s): Bernard Yeung, Randall Morck, Jun Huang, Jing Wu, Yongheng Deng | Posted on: May 04, 2016 | Views()