Does Flattening Environmental Protection Agencies Help Reduce Border Pollution?

Existing research on organizational structures of government has generally overlooked its impact on environmental protection regimes. Using a flat hierarchy reform in China, we investigate the causal relationship between the flattening of environmental protection agencies and border water pollution. Our findings indicate that the flattening of environmental agencies significantly reduced water pollution at the border. Additionally, we examine three potential channels. The results reveal that the flattening reform affected border pollution by stimulating the awareness of local governments1 to protect again pollution, reducing collusion between government officials, and alleviating financial pressure on environmental monitoring budgets. These findings suggest that flattening environmental protection agencies in developing countries like China may be an effective approach to address border pollution caused by free-riding and official corruption