Swings and Roundabouts: How Multitasking Local Officials Respond to Environmental Regulation

Abstract

We exploit how local officials respond to environmental regulation as economic growth remains the top priority in China. Chinese central government implemented a strict environmental regulation on both air and water pollution since 2006. However, water pollution control is only valid for some riverside cities, not like the commonly applied air pollution control. We find that the additional water pollution control crowds out the effort of local officials on air pollution control and damages the health of residents in riverside cities.