INSTITUTIONAL REFORM IN ENVIRONMENTAL GOVERNANCE SYSTEM OF THE PEOPLE'S REPUBLIC OF CHINA: Service Organizations as an Alternative for Administrative Enhancement

The economic reform in the PRC inaugurated by Deng Xiaoping in 1979 has changed the landscape of the regime's environmental governance by putting it in a more market‐oriented context. As a strategy to strengthen administrative capacity in a situation heavily circumscribed by the limited resource support from local governments, the environmental protection authorities at all levels have established a sizable number of service organizations to provide them administrative support. These service organizations have to sponsor their own operation by engaging in revenue‐generating or fund raising activities. This has led to the emergence and proliferation of service organizations in the environmental governance system in the last decade. This article will examine, from a state capacity perspective, institutional reform in the environmental governance system of the PRC¹.