Political Selection Tournament and Environmental Policy in China

Author: Eiji SAWADA
Xu Yirui
Date: 2014/2
No: DP2014-001
JEL Classification codes: H7,H11,Q50
Language: Japanese
[ Abstract ]

As a means to give local governments a strong incentive for economic development, Chinese government has been used "political selection tournament." This control resulted in encouraging economic growth on one hand; it still remains some arguments about converting to green growth in China. We therefore examined that point by analytical approach using the framework of "elimination tournament model" proposed by Rosen (1986). We found that putting much weight on environmental improving as a promotion criterion does not always make local governments eager to address the improvement of natural environment. We also found that such a situation can be avoided by combining budget control with personnel control.