China Policy Journal Volume 1, Number 1, Fall 2018 | Page 91

China Policy Journal enhance environmental enforcement, and facilitate social learning (Li and Li 2012). Environmental transparency is one of the most important policy tools the central government is using to monitor and evaluate the performance of local governments in environmental protection so as to enforce environment laws and regulations. Given the importance of subjective measures of public services and government performance in public administration research (Schachter 2010; Shingler, Van Loon, and Alter 2008), we aim to examine two research questions with significant theoretical and practical implications: (1) To what extent do people’s perceptions of air quality reflect the authentic air quality measured by government hard data in China? (2) What policy instruments government can take to influence people’s perceptions of air pollution? In this study, we use data from various sources (nationwide citizen survey, government statistics, and external assessments) and employ a multilevel modeling (MLM) strategy to empirically explore the antecedents of citizens’ perceptions of air quality. Specifically, we examine to what extent objective air quality and environmental information availability (transparency) jointly affect citizens’ perceptions of air quality. After controlling for a variety of confounding variables, we find that subjective air quality is positively related to objective air quality and environmental transparency negatively moderates this relationship. The findings generate significant theoretical and practical implications for environmental policy, government performance measurement, and transparency. The remainder of this article is structured as follows. First, we discuss the relationship between objective air pollution and subjective perceptions of air quality. Second, we review the environmental transparency literature, discussing how environmental transparency in China would influence subjective air pollution. Third, we report our data collection and research methods. Fourth, we present and discuss our findings. Lastly, we conclude with theoretical and policy implications, limitations, and future research avenues. Context Air Pollution in China Since China’s “Reform and Openup” policy in the late 1970s, China has achieved stunning economic achievement. In 2010, China overtakes Japan as World’s No. 2 economy. China is also experiencing unprecedented urbanization. In 2015, more than 55.6 percent of Chinese lived in urban area (CIA World Factbook 2017). It is no doubt that economic development and urbanization have drastically improved Chinese people’s economic income and quality of life. However, similar to other developing countries such as India, China is also experiencing devastating environmental pollutions (Albert and Xu 2016). China has 16 of the world’s 20 most polluted cities (World Bank 2007), and environmental pollutions have al- 88