Do environmental target constraints of local government affect high-quality economic development? Evidence from China

The purpose of this paper seeks to investigate the impact that environmental target constraints imposed by local governments have on the quality of economic development. In this paper, the city-level economic high-quality development index was measured, and data on environmental target constraints were compiled from the governmental work reports submitted by 230 cities between the years 2004 and 2013. Using the DID model and the instrumental variable method, it is found that (1) when environmental performance is factored into the performance evaluation of governmental officials, environmental target constraints contribute significantly to the high-quality growth of the local economy and (2) environmental target constraints are heterogeneous across regions and have a greater promoting effect on cities in eastern China than in central and western China. These conclusions are supported by a number of robustness tests. Resultantly, this paper provides a novel perspective for understanding the relationship between environmental protection and the quality of economic development. In addition, it offers the government theoretical and empirical support to strengthen the development of an environmental protection system and promote high-quality economic development. Moreover, this study delivers crucial empirical evidence for developing countries to simultaneously achieve environmental pollution control and economic growth.