Moving beyond gross domestic product: The impacts of gross domestic product‐centric cadre performance targets shift on environmental protection

Abstract

The impacts of the economic matrix, particularly the Gross Domestic Product (GDP), within the cadre performance target system (CPTS) on the trade‐offs between local environment and economy have been extensively researched. However, few studies have adequately considered the transition from a single‐target to a multi‐target system and the effects of dynamic changes in this system. This study addresses this gap by assessing the causal effects of China's historic adjustment of GDP‐centric CPTS on local environmental quality. By introducing a dynamic analytical framework of CPTS and employing a time‐varying Difference‐in‐Differences (DiD) design with county‐level data from 2009 to 2018, this study reveals two key findings: (1) Counties that shifted away from a GDP‐centric performance target system experienced a significant average reduction in PM2.5 pollution levels by 6.6%, highlighting the environmental benefits of moving beyond GDP‐focused CPTS; (2) The observed environmental improvements are driven by two mechanisms—correcting land misallocation and optimizing industrial structure. This study advances previous static and single‐goal analyses by introducing a dynamic, multi‐target perspective to cadre performance target‐setting.