In recent years, China has taken important steps to improve environmental governance. One of the most notable reforms is the nationwide rollout of corporate environmental information disclosure. Behind this shift lies a combination of policy evolution, institutional momentum, and a body of research that helped inform and support the process.
EfD Researchers Bing Zhang, Jintao Xu, and co-author Liu Mengdi have conducted research on the effects of environmental disclosure for over ten years, combined with extensive engagement with policymakers. They were recognized with the 2025 EfD Policy Impact Award. Their work has contributed valuable insights into how transparency can enhance accountability in environmental governance.
60 percent drop in violations
The research began with a practical question: Can making pollution data public improve environmental outcomes? To explore this, they conducted a series of large-scale randomized controlled trials (RCTs) and field experiments across China. These studies were designed not just to test theories, but to understand how different actors – citizens, firms, NGOs, and government agencies – respond to environmental information when it’s made accessible.
“First, we found that bottom-up accountability occurs when the public has access to environmental information,” explains Bing Zhang.
The visibility of the public’s engagement is also important: One experiment found that public complaints posted on social media led to a 60% drop in pollution violations, while private complaints through official hotlines had a limited impact. The public nature of the appeals also generated spillover effects by shifting the local officials’ priorities from favoring the growth potential of firms to addressing social pressure for environmental protection.
Pressure from NGOs plays important role
Another study examined how NGOs used disclosed data to pressure firms. When NGOs signaled their intent to publicize violations, firms improved compliance, suggesting that, in addition to regulatory pressure, reputational concerns also motivated firms to behave better. This form of horizontal accountability, where civil society complements formal regulation, proved particularly effective in regions with weaker capacity to enforce regulations.
The study also showed that firms with political connections were more concerned about the reputational damage, while those with fewer political ties were instead more sensitive to following the regulations.
“This finding suggests that pressure from NGOs can be a complement to formal regulations,” says Bing Zhang.
Streamlining central and local enforcement
A third strand of research focused on top-down accountability, that is, publicly disclosing how well local governments complied with central mandates. The researchers observed substantial improvement in transparency, suggesting that the central government can leverage NGOs’ monitoring to enhance environmental control while reducing its own monitoring costs.
Combined, all these findings show that transparency is a powerful policy instrument for enhancing environmental governance in decentralized political systems.
From findings to frameworks
While the researchers’ findings were published in top-tier journals such as American Economic Review (AER), Proceedings of the National Academy of Sciences (PNAS), Journal of Policy Analysis and Management, and the Journal of Policy Analysis and Management (JPAM), their impact extended beyond academia. Through long-term and in-depth engagement with China’s Ministry of Ecology and Environment (MEE), the team submitted influential policy recommendations, participated in high-level policy conferences, and drafted key regulatory documents.
Their report, Assessment and Institutional Research on Environmental Information Disclosure by Listed Companies, was officially recognized by the MEE and helped inform the development of several landmark policies. These included the 2021 Management Measures for the Legal Disclosure of Enterprise Environmental Information, which expanded the scope of regulated entities, standardized reporting formats, and introduced a centralized disclosure platform.
This reform was driven by some interacting factors. Institutional priorities, such as the State Council’s push for “modern environmental governance,” international ESG (Environmental, Social, and Governance) norms, and financial sector demands for transparency, all played critical roles. The researchers’ work aligned with these broader trends and provided empirical support for policy choices.
Extensive implementation
Today, over 80,000 enterprises and institutions in China are required to disclose environmental information. Each province operates its own platform for environmental information, but the systems are harmonized, allowing for cross-regional access and comparisons. Enterprises report annually, and those with real-time monitoring systems share pollution data continuously.
“The reform has improved oversight efficiency, supported green finance initiatives, and encouraged industries to self-regulate. It has also created new opportunities for data-driven governance, with environmental data now integrated into financial credit systems and supply chain evaluations,” says Bing Zhang.
The local implementation has been robust. By the end of 2023, nearly all of China’s 337 prefecture-level cities had disclosed enterprise lists for environmental reporting, with many achieving full compliance and demonstrating the reform’s broad reach and feasibility.
A successful collaboration
While the researchers did not single-handedly transform China’s environmental governance, their work exemplifies how academic research can contribute meaningfully to policy development. By combining rigorous methods with real-world engagement, they showed the mechanisms for how transparency can drive accountability.
Their journey also highlights the importance of collaboration. The reforms were shaped by input from government agencies, financial regulators, NGOs, and industry stakeholders. The researchers’ role was to provide evidence, test assumptions, and offer practical recommendations.
As environmental challenges grow more urgent, the need for informed, evidence-based policy becomes ever more critical. The story of China’s environmental disclosure reform and the researchers who helped support it offers a compelling example of how science and policy can work together to build more transparent, accountable systems.
By: Petra Hansson
References
Anderson, S. E., Buntaine, M. T., Liu, M., & Zhang, B. (2019). Non‐governmental monitoring of local governments increases compliance with central mandates: a national‐scale field experiment in China. American Journal of Political Science, 63(3), 626-643.
Buntaine, M. T., Greenstone, M., He, G., Liu, M., Wang, S., & Zhang, B. (2024). Does the squeaky wheel get more grease? The direct and indirect effects of citizen participation on environmental governance in China. American Economic Review, 114(3), 815-850.
Liu, M., Buntaine, M. T., Anderson, S. E., & Zhang, B. (2025). Transparency by Chinese cities reduces pollution violations and improves air quality. Proceedings of the National Academy of Sciences, 122(14), e2406761122.
Tang, Y., Liu, M., Xia, F., & Zhang, B. (2024). Informal regulation by nongovernmental organizations enhances corporate compliance: Evidence from a nationwide randomized controlled trial in China. Journal of Policy Analysis and Management, 43(1), 234-257.
The reform has also received widespread attention and coverage from both Chinese and international media. Some examples:
Green Compliance in China – How to Prepare for Environmental Regulations
China embarks on a journey of ESG disclosure: 2024 progress and focus for 2025