Dynamic target adjustment and pollution reduction effects: Evidence from China’s Clean Air Action

This study explores the impact of dynamic target adjustment on the environment. By extending China’s Clean Air Action (CAA) to the city level, using panel data from 289 Chinese cities between 2007 and 2023, and applying the DDD model, we find that annual target adjustment significantly reduces air pollution in China. This reduction is achieved through mechanisms such as optimizing the industrial structure and increasing green technology innovation, but it has not effectively slowed the rise of environmental inequality. The effects are particularly significant in areas with higher target levels, north of the Qinling-Huaihe heating line, and in regions with greater environmental attention. This research enriches the theory of target setting and highlights the important impact of periodic target updates on pollution control and environmental equity.