The sword of damocles: Understanding the carbon abatement effects of top-down environmental management practices -- insights from China's campaign-style governance

Abstract

Inspection, standing for top-down environmental management practices, also known as campaign-style governance, is used by central governments to lessen local environmental pollution. However, there is no causal evidence for carbon abatement. Employing staggered difference-in-differences (DiD), I find that inspected cities mitigate carbon intensity and carbon emissions by 3.72% and 2.34%, respectively, with economic significance. Conducting a triple difference strategy, I suggest the channels are the local people's congresses and political consultative conferences' proposals, government attention, environmental regulation, industrial structure, and green innovation. Also, the heterogeneous effects suggest that municipal party secretaries assigned to their birthplace, the older the party standing and age, and those with natural sciences majors, are more conducive to the inspection achieving carbon mitigation. An alternative DiD specification shows that the "look-back" inspection achieves sustained carbon reduction. I support the argument that top-down inspection helps achieve resilience to climate change and reduce greenhouse gas emissions.

Keywords: Carbon mitigation; Central environmental protection inspection; Counterfactual analysis; Regression discontinuity design; Urban climate adaptation.