Environmental governance-public supervision and participation nexus under state supervision system and carbon neutrality targets in China.

ABSTRACT

China is now experiencing severe environmental issues due to its rapid socio-economic advancement. Environmental governance is crucial to preserving China's rapidly degrading natural ecology. Public supervision and participation are important factors that effectively promote environmental quality. Therefore, this analysis primarily examines the relationship between China's public participation and environmental governance. Hence, the primary focus of the analysis is to investigate the asymmetric impact of public participation on environmental governance from 1996 to 2020. We have employed the nonlinear QARDL model that estimates the short- and long-run impact across different quantiles. The study's results support that long-run estimates for positive change in environmental NGOs (ENGOs) are significantly positive for almost all quantiles, while those for negative change in ENGOs are negative and have a significant impact at higher quantiles. In the short run, the estimates of positive change in ENGOs are positive and significant; however, the negative change in ENGOs does not significantly impact environmental governance at lower quantiles. The Wald test also confirms the asymmetric impact of ENGOs on environmental governance across various quantiles in short and long run. The findings of this analysis underscore the critical role of public supervision and participation in influencing environmental governance in China.