{"title":"Criminal enforcement and environmental performance: Evidence from China","authors":"Xian Liu , Wen Wang , Shoujun Huang","doi":"10.1016/j.ecolecon.2024.108267","DOIUrl":null,"url":null,"abstract":"<div><p>The past decade has witnessed an escalation of using criminal enforcement to enhance environmental compliance in China. The purpose of this study is to examine the deterrent effects of criminal enforcement on environmental crimes. To this end, we explore a unique environmental supervision and compliance dataset of Chinese facilities. Our empirical analysis shows that criminal enforcement significantly enhances firms' environmental performance. The preferred specifications suggest that presence of criminal charges in a city is associated with a 12% reduction in the number of environmental violations. This result is robust to different specifications and alternative measures. Our findings further show that the deterrent effect is more pronounced in inland cities and those “non-key” environmental protection cities. It suggests that criminal enforcement has significant complementary effects in enhancing compliance in areas where administrative enforcement is insufficient.</p></div>","PeriodicalId":51021,"journal":{"name":"Ecological Economics","volume":null,"pages":null},"PeriodicalIF":6.6000,"publicationDate":"2024-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Ecological Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0921800924001642","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECOLOGY","Score":null,"Total":0}
引用次数: 0
Abstract
The past decade has witnessed an escalation of using criminal enforcement to enhance environmental compliance in China. The purpose of this study is to examine the deterrent effects of criminal enforcement on environmental crimes. To this end, we explore a unique environmental supervision and compliance dataset of Chinese facilities. Our empirical analysis shows that criminal enforcement significantly enhances firms' environmental performance. The preferred specifications suggest that presence of criminal charges in a city is associated with a 12% reduction in the number of environmental violations. This result is robust to different specifications and alternative measures. Our findings further show that the deterrent effect is more pronounced in inland cities and those “non-key” environmental protection cities. It suggests that criminal enforcement has significant complementary effects in enhancing compliance in areas where administrative enforcement is insufficient.
期刊介绍:
Ecological Economics is concerned with extending and integrating the understanding of the interfaces and interplay between "nature''s household" (ecosystems) and "humanity''s household" (the economy). Ecological economics is an interdisciplinary field defined by a set of concrete problems or challenges related to governing economic activity in a way that promotes human well-being, sustainability, and justice. The journal thus emphasizes critical work that draws on and integrates elements of ecological science, economics, and the analysis of values, behaviors, cultural practices, institutional structures, and societal dynamics. The journal is transdisciplinary in spirit and methodologically open, drawing on the insights offered by a variety of intellectual traditions, and appealing to a diverse readership.
Specific research areas covered include: valuation of natural resources, sustainable agriculture and development, ecologically integrated technology, integrated ecologic-economic modelling at scales from local to regional to global, implications of thermodynamics for economics and ecology, renewable resource management and conservation, critical assessments of the basic assumptions underlying current economic and ecological paradigms and the implications of alternative assumptions, economic and ecological consequences of genetically engineered organisms, and gene pool inventory and management, alternative principles for valuing natural wealth, integrating natural resources and environmental services into national income and wealth accounts, methods of implementing efficient environmental policies, case studies of economic-ecologic conflict or harmony, etc. New issues in this area are rapidly emerging and will find a ready forum in Ecological Economics.