Investigating Mayors for Corruption Reduces SO2 Pollution from Coal Power Plants in China
Speaker: Shuang Zhang (University of Colorado Boulder)
Date: Dec. 16, Monday, 2019
Time: 12 - 1 pm
Venue: Room 1050, Pudong Campus
Abstract:
We examine whether targeting city mayors during a nationwide anti-corruption campaign in China affected the concentration of sulfur dioxide (SO2), a major air pollutant, emitted from local coal power plants. Using an event study design, we show that investigating a mayor led to substantial reductions in SO2 concentrations, increased regulatory compliance, and reduced operating hours at private coal power plants, but not at state-controlled coal power plants. Private plants are less connected politically and receive less state support; for them, forming relationships with local officials may be a low-cost alternative to environmental compliance. Our results show empirically that efforts to limit corruption can yield sustained reductions in pollution.
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