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<p>Government procurement of environmental governance services, which aims to advance sustainable development, is affected by local protectionism. Existing studies have not considered co-location in the context of grassroots governance. This study focuses on local protectionism in the framework of promotion tournament theory. Using Chinese county-level panel data from 2016 to 2023 and models such as staggered difference-in-differences and regression discontinuity design, we empirically examine the impact of co-located procurement on air pollution. The findings indicate that county-level centralized procurement significantly increases air pollution. Specifically, centralized procurement involving state-owned enterprises, small-scale investments, and engineering projects has considerably increased air pollution. In addition, this study reveals that green performance assessment, digital governance, and cross-regional governance are feasible measures for mitigating the polluting effect of co-located procurement, thereby providing new insights for advancing the green development of global government procurement and addressing the dilemmas in grassroots environmental governance.</p>

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Does co-located government procurement increase air pollution? Evidence from Chinese counties

  • 期刊论文

  • 发表日期：

    2026年2月25日

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  • Xiaogang Wu,
  • Kegao Yan,
  • Yahui Song,
  • Wenjie Chen

摘要

Government procurement of environmental governance services, which aims to advance sustainable development, is affected by local protectionism. Existing studies have not considered co-location in the context of grassroots governance. This study focuses on local protectionism in the framework of promotion tournament theory. Using Chinese county-level panel data from 2016 to 2023 and models such as staggered difference-in-differences and regression discontinuity design, we empirically examine the impact of co-located procurement on air pollution. The findings indicate that county-level centralized procurement significantly increases air pollution. Specifically, centralized procurement involving state-owned enterprises, small-scale investments, and engineering projects has considerably increased air pollution. In addition, this study reveals that green performance assessment, digital governance, and cross-regional governance are feasible measures for mitigating the polluting effect of co-located procurement, thereby providing new insights for advancing the green development of global government procurement and addressing the dilemmas in grassroots environmental governance.