Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China

Land distribution is intricately linked to economic quality and sustainable growth, influenced by administrative division adjustment (ADA), which can be categorized into various forms, with the township–town merge (TTM) reform being the most common. This study evaluates the effect of TTM on local go...

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Main Authors: Xiaodan Zheng, Shangpu Li, Junwen Li, Yihong Sun
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research Communications
Subjects:
Online Access:https://doi.org/10.1088/2515-7620/ada2e6
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author Xiaodan Zheng
Shangpu Li
Junwen Li
Yihong Sun
author_facet Xiaodan Zheng
Shangpu Li
Junwen Li
Yihong Sun
author_sort Xiaodan Zheng
collection DOAJ
description Land distribution is intricately linked to economic quality and sustainable growth, influenced by administrative division adjustment (ADA), which can be categorized into various forms, with the township–town merge (TTM) reform being the most common. This study evaluates the effect of TTM on local governments’ dependence on polluting industries from a fiscal decentralization angle, using the differences-in-differences model with transaction data from China’s land market. Findings reveal that TTM increases local governments’ dependence on polluting industries, especially in districts/counties with weaker economic conditions before the COVID-19 pandemic. Evidence also highlights a notable boundary effect of TTM, though its impact is minimal in districts/counties at provincial borders due to their potentially lower public investment inclination. TTM also increases the decentralization level of districts/counties, thus explaining the increase in local government’s dependence on polluting industries. The empirical results have confirmed such a mechanism. However, top-down supervision limits the effect of the reform to a certain extent. This conclusion offers fresh policy insights for leveraging land supply mechanisms to advance environmental governance in centralized developing nations through the lens of ADA.
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institution Kabale University
issn 2515-7620
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publishDate 2025-01-01
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series Environmental Research Communications
spelling doaj-art-3d41647da55d4b83b5ffc73d56a3e20b2025-02-07T12:18:58ZengIOP PublishingEnvironmental Research Communications2515-76202025-01-017101500110.1088/2515-7620/ada2e6Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in ChinaXiaodan Zheng0https://orcid.org/0009-0005-5158-5074Shangpu Li1https://orcid.org/0000-0003-4750-5498Junwen Li2Yihong Sun3College of Economics and Management, South China Agricultural University , Guangzhou 510642, People’s Republic of ChinaCollege of Economics and Management, South China Agricultural University , Guangzhou 510642, People’s Republic of ChinaCollege of Economics and Management, South China Agricultural University , Guangzhou 510642, People’s Republic of ChinaCollege of Economics and Management, South China Agricultural University , Guangzhou 510642, People’s Republic of ChinaLand distribution is intricately linked to economic quality and sustainable growth, influenced by administrative division adjustment (ADA), which can be categorized into various forms, with the township–town merge (TTM) reform being the most common. This study evaluates the effect of TTM on local governments’ dependence on polluting industries from a fiscal decentralization angle, using the differences-in-differences model with transaction data from China’s land market. Findings reveal that TTM increases local governments’ dependence on polluting industries, especially in districts/counties with weaker economic conditions before the COVID-19 pandemic. Evidence also highlights a notable boundary effect of TTM, though its impact is minimal in districts/counties at provincial borders due to their potentially lower public investment inclination. TTM also increases the decentralization level of districts/counties, thus explaining the increase in local government’s dependence on polluting industries. The empirical results have confirmed such a mechanism. However, top-down supervision limits the effect of the reform to a certain extent. This conclusion offers fresh policy insights for leveraging land supply mechanisms to advance environmental governance in centralized developing nations through the lens of ADA.https://doi.org/10.1088/2515-7620/ada2e6township-town mergerland supplypollution industryfiscal decentralizationtop–down supervision
spellingShingle Xiaodan Zheng
Shangpu Li
Junwen Li
Yihong Sun
Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
Environmental Research Communications
township-town merger
land supply
pollution industry
fiscal decentralization
top–down supervision
title Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
title_full Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
title_fullStr Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
title_full_unstemmed Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
title_short Does administrative divisions adjustment affect polluting industries dependence? Evidence from township-town merge in China
title_sort does administrative divisions adjustment affect polluting industries dependence evidence from township town merge in china
topic township-town merger
land supply
pollution industry
fiscal decentralization
top–down supervision
url https://doi.org/10.1088/2515-7620/ada2e6
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AT shangpuli doesadministrativedivisionsadjustmentaffectpollutingindustriesdependenceevidencefromtownshiptownmergeinchina
AT junwenli doesadministrativedivisionsadjustmentaffectpollutingindustriesdependenceevidencefromtownshiptownmergeinchina
AT yihongsun doesadministrativedivisionsadjustmentaffectpollutingindustriesdependenceevidencefromtownshiptownmergeinchina