How can transparency moderate the effectiveness of policy design—Evidence from China’s waste source-separation policy

The effectiveness of policy design is contingent on various contexts. While existing literature has examined contextual factors including policy uncertainty, central-local goal conflicts, and political support, the role of government transparency remains underexplored. Given the significant role of transparency in China’s fragmented environmental governance, where information asymmetries between levels of government and among departments, along with limited public oversight, often impede policy implementation, this study focuses on how transparency moderates the effectiveness of policy designs. Since the 2017 national directive to establish an integrated waste sorting system, local governments have adopted varied regulatory approaches to meet central targets. We draw on original content analysis of local waste separation regulations, a performance index developed by environmental NGOs, and official statistics to empirically examine how local environmental transparency moderates the association between policy design and waste-separation performance. Findings show that while a higher policy goal leads to better waste-separation performance, a stronger political commitment does not consistently enhance outcomes. Moreover, regulatory instruments lead to better waste-separation performance in more transparent cities, while incentive-based instruments work better in less transparent cities. These results highlight the need for both policymakers and practitioners to align policy design with local governance and information environments.