Institutional accountability for water governance: firm-level evidence from the Yangtze River economic belt

ABSTRACT This study examines the environmental impacts of China's River Chief System (RCS) using a firm-level panel dataset from 2004 to 2013, an event-study estimator that accommodates staggered policy adoption. The results indicate that the RCS significantly reduces chemical oxygen demand (COD) emissions in the medium to long term. However, the dynamic analysis reveals a delayed onset of effects, with notable improvements emerging two to three years after policy implementation, and a short-term rise in ammonia nitrogen (NH3–N) emissions, suggesting transitional adjustments by firms. These findings highlight the heterogeneous and evolving nature of the policy's impact rather than a uniformly positive outcome, offering nuanced insights into how environmental governance reforms shape industrial pollution control.