In recent years, the emergence of state-led megaregions in China has introduced a transformative dynamic in local environmental governance, setting the stage for a novel approach to tackling pollution and ecological imbalances across vast urban clusters. These megaregions, notably exemplified by the Yangtze River Delta, have become epicenters where economic growth and environmental stewardship intersect under carefully orchestrated state intervention. This evolution offers compelling evidence that large-scale urban integration can fundamentally reshape local governments’ responses to environmental challenges, leveraging mechanisms that reduce information asymmetry and enhance intergovernmental cooperation.
A core hurdle in environmental collaboration has long been the costly and complex issue of information asymmetry among local governments. Traditional fragmented governance structures suffer from a lack of transparency and insufficient data sharing, which often stall collective action against pollution that transcends administrative boundaries. State-led megaregions confront this challenge head-on by institutionalizing regional mechanisms for comprehensive data collection and sharing. The Yangtze River Delta’s establishment of a joint ecological and environmental protection platform is emblematic of this effort. Here, multiple cities synchronize pollution source data, meteorological metrics, and enforcement records, creating a finely interwoven information network that sharpens governmental oversight while simultaneously building mutual trust.
These integrated platforms serve a dual purpose. They not only provide a centralized repository for environmental data but also enable coordinated law enforcement units to conduct cross-provincial inspections. By focusing efforts on critical nodes such as transboundary lakes and rivers, these joint teams can systematically investigate pollutant sources and crack down on illegal emissions, which have historically slipped through cracks due to jurisdictional fragmentation. This reduction in informational gaps directly enhances the local governments’ capacity to navigate the classic ‘prisoner’s dilemma’ scenario, where the temptation to free-ride undermines cooperative pollution control initiatives.
Empirical analyses have substantiated that when pollution source supervision information is more transparent—as measured by indices like the Pollution Source Supervision Information Transparency Index (PITI)—the effectiveness of environmental governance improves markedly. In regions marked by higher information asymmetry, the implementation of Integrated Development Plans under the DPNUA (Development Plan of National Urban Agglomerations) framework mitigates these deficiencies, fostering greater accountability and coordination. This dynamic underscores the incontrovertible role that transparent data sharing plays in empowering localized environmental interventions.
Beyond information sharing, another significant barrier in regional environmental cooperation lies in negotiation costs—those expenses incurred through reaching consensus on cost allocation for pollution controls, revenue distribution, and enforcement responsibilities. The harmonization of environmental protection standards within megaregions, such as unified pollutant emission thresholds and standardized law enforcement protocols, alleviates these costs substantially. Policy documents like the “Special Plan for Ecological Environment of the Yangtze River Delta Ecological Green Integrated Development Demonstration Zone (2021–2035)” exemplify concerted top-down efforts to integrate fragmented regulatory frameworks and realign industrial spatial layouts, fostering an environment conducive to coordinated governance.
Such structural alignment and clear regulatory roadmaps do more than streamline bureaucratic negotiation; they materially influence the willingness of local governments to invest in environmental protection activities. Financial transparency data reveals that entities operating within the DPNUA framework demonstrate a significantly higher propensity to allocate budgets toward environmental initiatives. This enhanced willingness translates into more aggressive investment in pollution mitigation measures, ecosystem restoration, and sustainable infrastructure—a trend that not only benefits local environments but also contributes to broader regional resilience.
The indirect effects of megaregional coordination extend into the realm of economic structural transformation, which has profound implications for environmental outcomes. Using the Theil index to quantify the rationalization of industrial structures—essentially the degree to which industrial output and employment are balanced across sectors—research indicates that state-led megaregions stimulate more balanced and efficient industrial ecosystems. The optimization of industrial composition curtails over-reliance on heavy polluting sectors and accelerates transitions toward cleaner, service-oriented economies, thereby indirectly reducing environmental degradation.
Parallel to industrial rationalization, the digital economy emerges as a formidable engine supporting pollution control and environmental governance efficiencies in megaregions. Advanced digital infrastructure—measured via composite indicators incorporating internet penetration, software sector employment, digital industry output, mobile phone reach, and inclusive digital finance—facilitates real-time environmental monitoring, data analytics, and enforcement actions. The prevalence of such digital ecosystems equips local governments with powerful technological tools that enhance pollution detection accuracy and responsiveness, transforming regulatory landscapes across the megaregion.
This technological leap is not merely an adjunct to environmental governance but a foundational pillar enabling more adaptive and precise policymaking. Cities embedded within megaregions and exhibiting stronger digital economies report higher efficacy in supervising polluting enterprises and implementing timely corrective measures. This synergy between institutional reforms and digital innovation exemplifies the holistic sophistication of China’s current environmental governance architecture in urban agglomerations.
Delving deeper into contextual heterogeneity, the impact of megaregions reveals pronounced variation contingent on the nature of local economic and political pressures. Resource-based cities—those predominantly reliant on extractive industries such as coal mining, steel production, and textile manufacturing—face unique environmental challenges due to their historical pollutant-intensive industrial bases. Under national sustainable development plans, these cities are subject to elevated scrutiny and mandatory transformation goals, positioning them at the forefront of pollution reduction efforts supported by megaregional coordination.
Data analysis confirms that DPNUA’s environmental governance mechanisms exert significantly stronger pollution control effects in resource-based cities than in their non-resource counterparts. The combination of centralized directives targeting heavy-polluting regions and region-wide collaboration ensures that these vulnerable urban centers are incentivized and able to undertake meaningful structural adjustments. This targeted focus aligns with national strategic priorities and amplifies the ecological dividends of megaregional initiatives.
Simultaneously, the heterogeneity analysis highlights the critical role of local governments’ developmental incentives and growth pressures. Cities experiencing high average GDP growth over multi-year periods tend to exhibit more proactive environmental governance under megaregional schemes. This responsiveness is tied to the promotion incentives faced by local officials within China’s bureaucratic hierarchy, which closely interlinks environmental performance with career advancement prospects. Officials in rapidly growing cities often prioritize balancing economic expansion with sustainable development, leveraging megaregions as platforms to harmonize these objectives.
The embedded logic here is that megaregions dissolve the once apparent trade-offs between economic growth and environmental protection, enabling cities to pursue both simultaneously. By fostering coordinated pollution control, industrial rationalization, and digital technological integration, megaregions redefine development pathways. Instead of viewing environmental regulation as a constraint, local governments increasingly see it as a complementary vector enhancing long-term competitiveness and governance legitimacy.
In sum, state-led megaregions represent an evolving paradigm in environmental governance that confronts longstanding challenges of fragmentation, information gaps, and regulatory incoherence. Through institutional innovations such as joint data platforms, harmonized regulatory standards, concerted investment commitments, and the promotion of digital economies, these megaregions encapsulate a sophisticated integration of political will, technological capability, and economic restructuring. This multifaceted approach not only bridges intergovernmental divisions but also crafts resilient and adaptive governance models tailored for the complexities of contemporary urban environmental management.
The insights garnered from the Yangtze River Delta, in particular, illuminate transferable lessons applicable to other regions grappling with cross-jurisdictional pollution dilemmas. By addressing the twin mechanisms of reducing information asymmetry and negotiation costs, megaregions harness collective action incentives, thereby overcoming the classic coordination failure in environmental governance. These findings underscore the criticality of transparency, shared standards, and the political economy of local government behavior in realizing large-scale ecological outcomes.
Looking forward, continued research and policy innovations in megaregion governance will be essential as China—and indeed the world—navigates the intricacies of sustainable urbanization and climate adaptation. Critical questions remain regarding the scaling of digital governance tools, the equitable allocation of environmental investments across diverse jurisdictions, and the mechanisms to sustain political commitment amid evolving economic conditions. Yet, the empirical evidence to date confirms that the fusion of state-led strategic planning with technological modernization and economic transformation holds immense promise for environmentally sustainable urban futures.
Subject of Research:
Local environmental governance mechanisms under state-led megaregion development in China.
Article Title:
How does the state-led megaregion affect local environmental governance? Evidence from China.
Article References:
Jin, R., Wang, X. How does the state-led megaregion affect local environmental governance? Evidence from China.
Humanit Soc Sci Commun 12, 1186 (2025). https://doi.org/10.1057/s41599-025-05565-6
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