UC San Diego

Overall air quality in China has improved for six consecutive years (Krotkov et al 2015). A little-studied aspect of pollution control in China is that the source of air pollution is dominated by heavy industry and that improvements have varied by sector. In my dissertation, I assess how corporate governance and competition policy has proven to be a useful tool for improving environmental compliance. Through case studies using both large N statistical analysis and in-depth interviews, I provide an empirical story that substantiates that as energy sectors have become more competitive, the Chinese government is able to impose stricter air quality standards and to enforce them more effectively. Monopolies avoid regulation through their control of information and of market supply of an essential commodity. By contrast, if the government breaks the monopoly, suppliers compete not just to sell product but also on compliance in order to gain permits and other government-issued advantages.