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Wednesday, March 04, 2015

China Invests in Improving its Environmental Governance

My co-author Prof. Siqi Zheng teaches at Tsinghua University in Beijing.  Her University is one of the top schools in China and proudly calls itself the MIT of China.   Until recently, the President of her university was an energetic 51 years old named Chen Jining.    Dr. Chen's Google Scholar page is here.     President Chen has now taken a major job in the Chinese Central Government as he now is the leader of China's Ministry of Environmental Protection (MEP) (see this news story).  Siqi and I believe that this is very good news for China.   Why would such an accomplished man accept this position if the MEP has little power?  Why would the Central Government appoint him to this position if it simply wants "business as usual" policies?  Do you see the ideas of supply and demand here?

A key input in "environmental governance" is the human capital of the people working for the governmental agency.  California is a great example of this point with the strong people who work for its Air Resources Board.

Another input needed for environmental governance to improve is "new rules of the game".  Read my 2014 RSUE paper on China switch in its rules and the resulting pollution gains.