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Decentralization and Pollution: Evidence from the Town Power Expansion Reform in China

Fei Peng et al.

China and World Economy2026https://doi.org/10.1111/cwe.70007article
AJG 1ABDC B
Weight
0.37

Abstract

This study examined the environmental consequences of administrative decentralization by focusing on China's town power expansion reform as a quasi‐natural experiment. Using firm‐level panel data for Zhejiang province from 2001 to 2013, it employed a difference‐in‐differences approach to assess the causal impact of decentralization at the town level on firm pollution emissions. The results indicated that this form of decentralization led to a significant 19.1 percent increase in firm‐level pollution, primarily driven by intensified economic competition and tax competition, expanded firms' output, and declined energy efficiency. These findings highlight the complex relationship between administrative decentralization and environmental governance, underscoring the potential unintended consequences of granting more autonomy to lower‐level governments. This study thereby contributes to the debate on the relationship between decentralization and pollution.

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https://doi.org/https://doi.org/10.1111/cwe.70007

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@article{fei2026,
  title        = {{Decentralization and Pollution: Evidence from the Town Power Expansion Reform in China}},
  author       = {Fei Peng et al.},
  journal      = {China and World Economy},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/cwe.70007},
}

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Decentralization and Pollution: Evidence from the Town Power Expansion Reform in China

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.