Traditional clans and environmental governance: Evidence from China

Abstract

This study combines genealogical data before 1990 and corporate pollution data in 2007 to empirically examine the impact of clan density on environmental governance. Our findings suggest that regions with strong clan power tend to suppress companies’ pollution. The use of historical wars as an instrumental variable strengthens our results. Preliminary analyses suggest that clans engage in environmental governance through organizational coordination and cultural education. Moreover, our study indicates that clans’ environmental governance effect can complement formal power in regions where it is lacking. Overall, as an informal organization, clans have a profound and important impact on environmental governance.