Command-and-control with Chinese characteristics: the role of vertical monitoring and public disclosure in reducing air pollution

Amid China’s increasing commitment to sustainable development, the Chinese government has been progressively rolling out environmental protection policies to tackle governance challenges encountered by local authorities. This study leverages the adoption of China’s New Ambient Air Quality Standards (NAAQS) as a quasi-natural experiment. Using county-level panel data from 2008 to 2022, a staggered difference-in-differences model is applied to assess how environmental policies characterized by “central leadership, local implementation, and public supervision” affect air pollution in China. The results show that: (1) The NAAQS led to a significant reduction in PM_2.5 concentrations at the county level, and this conclusion is robust. (2) Mechanism analysis reveals that the reduction in pollution was driven by the policy’s effect on prompting local governments to enhance environmental governance, pressuring firms to cut emissions, and elevating public environmental awareness. (3) Heterogeneity analysis indicates that the policy impact was stronger in economically developed counties, non-border counties, and those in closer proximity to prefecture-level cities. (4) Further analysis demonstrates that the NAAQS not only boosted the scale and dynamism of county-level economic development but also reinforced regional economic agglomeration. These findings offer valuable insights for developing countries seeking to build a diversified and coordinated environmental governance system.