The spatial effect of fiscal decentralization on haze pollution in China

2021 ◽  
Author(s):  
Zhonghua Cheng ◽  
Yeman Zhu
Keyword(s):  
Fiscal Decentralization ◽  
Spatial Effect ◽  
Haze Pollution

The Spatial Effect of Fiscal Decentralization on Haze Pollution in China

2021 ◽  
Author(s):  
Zhonghua Cheng ◽  
Yeman Zhu
Keyword(s):  
Local Governments ◽  
Statistical Data ◽  
Fiscal Decentralization ◽  
Environmental Policies ◽  
Local Area ◽  
Spatial Effect ◽  
Race To The Bottom ◽  
Haze Pollution ◽  
Local Areas ◽  
Surrounding Areas

Abstract This paper empirically analyzes the effects of fiscal decentralization on haze pollution and its mechanism using statistical data from 285 Chinese cities from 2003 to 2016. The results show that increases in the degree of fiscal decentralization not only dramatically aggravate haze pollution in local areas but also significantly worsen the haze pollution in surrounding areas. Further mechanism analyses show that the increase in the degree of fiscal decentralization can also increase the volatility of haze pollution in local areas indicating that local governments do have the ability to control haze pollution in their local area according to their own preferences and interests. However, increases in the degree of fiscal decentralization in the local area can also reduce the volatility of haze pollution in surrounding areas at the same time, indicating that the adjustments in environmental policies in surrounding areas will significantly inhibit the control of environmental policies in the local area, thus preventing haze pollution in the local area from being effectively controlled. This means that there is a destructive environmental ‘Race to the Bottom’ competition between governments in order to compete in the game.

scholarly journals Did Haze Pollution Harm the Quality of Economic Development?—An Empirical Study Based on China’s PM2.5 Concentrations

2020 ◽  
Vol 12 (4) ◽  
pp. 1607
Author(s):  
Qing Zhao ◽  
Chih-Hung Yuan
Keyword(s):  
Economic Development ◽  
Fiscal Decentralization ◽  
Economic Effect ◽  
Chinese Economy ◽  
Policy Implications ◽  
Atmospheric Environment ◽  
Development Mode ◽  
Haze Pollution ◽  
The Impact

Based on the PM2.5 haze data of China’s provinces between 2004–2016, this paper systematically explores the impact of haze pollution on the quality of China’s economic development, as well as its transmission mechanisms. This is achieved by measuring the quality of economic development with total factor productivity. Furthermore, this paper innovatively uses precipitation as an instrumental variable for mitigating the endogeneity of the haze pollution variable, by which the impact of haze pollution on the quality of China’s economic development is estimated within the framework of two-stage least squares. It is found that: the haze pollution has degraded the quality of China’s economic development significantly; the labor supply loss, counter urbanization and human capital disruption are the three major transmission channels through which haze pollution affects the quality of China’s economic development; strengthening government’s environmental management is effective in mitigating the adverse impact of haze pollution on the economic development quality; and that China’s unique fiscal decentralization system has exacerbated the negative economic effect of haze pollution. The policy implications of this paper are as follows: Improvement of economic development quality is a prerequisite for the transition of economic development mode; and the governmental management of haze is conducive to enhancing the quality of atmospheric environment and economic development, and to promoting the high-quality development of the Chinese economy.

scholarly journals Spatial Effect of Industrial Energy Consumption Structure and Transportation on Haze Pollution in Beijing-Tianjin-Hebei Region

2020 ◽  
Vol 17 (15) ◽  
pp. 5610 ◽  
Author(s):  
Meicun Li ◽  
Chunmei Mao
Keyword(s):  
Economic Development ◽  
Energy Consumption ◽  
Correlation Analysis ◽  
Spatial Correlation ◽  
Spatial Effect ◽  
Consumption Structure ◽  
Haze Pollution ◽  
Industrial Energy ◽  
Highly Correlated ◽  
Industrial Energy Consumption

Haze pollution has a serious impact on China’s economic development and people’s livelihood. We used data on PM2.5 concentration, industrial energy consumption structure, economic development and transportation in Beijing-Tianjin-Hebei and surrounding cities from 2000 to 2017, and analyzed the spatial effect of industrial energy consumption structure and traffic factors on haze pollution by using spatial autoregressive model (SAR) and spatial error model (SEM). The results indicated that: (1) The global spatial correlation analysis showed that haze pollution had a significant positive spatial correlation, and the local spatial correlation analysis showed that the high-high clusters of PM2.5 were located in the south and middle of the region; (2) The change of industrial energy consumption structure was highly correlated with haze pollution, namely, the increase of industrial energy consumption led to the deterioration of environmental quality; (3) The change of economic development was highly correlated with haze pollution. There was no clear EKC relationship between haze pollution and economic development in Beijing-Tianjin-Hebei region and surrounding cities. However, the relationship was similar to inverted U-shaped curve; (4) The change of traffic jam was highly correlated with haze pollution, namely, the increase of fuel consumption per unit road area led to the deterioration of environmental quality. Based on the above results, from the perspective of space, the long-term measures for haze control in Beijing-Tianjin-Hebei and surrounding cities can be explored from the aspects of energy conservation and emission reduction, industrial transfer, vehicle emission control, traffic restrictions and purchase restrictions.

scholarly journals Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China

2020 ◽  
Vol 17 (23) ◽  
pp. 8974
Author(s):  
Caihua Zhou ◽  
Xinmin Zhang
Keyword(s):  
Environmental Pollution ◽  
Technical Efficiency ◽  
Pollution Control ◽  
Fiscal Decentralization ◽  
Spatial Effect ◽  
Assessment System ◽  
Policy Implications ◽  
Fiscal Policies ◽  
Fiscal Revenue ◽  
Fiscal Expenditure

This paper uses both fiscal expenditure policy and fiscal revenue policy as input indicators and selects environmental pollution control results reflecting different forms and sources of pollution as output indicators. The efficiency of fiscal policies for environmental pollution control (EFPE) of 30 provincial-level administrative divisions in China from 2007 to 2017 is measured by adopting the data envelopment analysis (DEA) method. Then, the spatial effect of fiscal decentralization on EFPE is empirically analyzed by using the spatial lag model (SLM). The results show that EFPE values in China have been greatly improved overall since 2014. The change in technical efficiency (TE) is caused mainly by the change in pure technical efficiency (PTE). EFPE values have regional heterogeneity and convergence. The eastern region has clearly higher EFPE values than other regions. The growth rate of the low efficient region is greater than that of the high efficient region. Fiscal expenditure decentralization has a direct negative effect and spatial spillover effect on EFPE values, while fiscal revenue decentralization has a non-significant effect. Based on these results, this paper proposes the following policy implications: increasing the level of fiscal expenditure of environmental pollution control and improving the central transfer payment system for environmental protection; reforming the government performance assessment system and innovating the conditions of government expenditure on environmental pollution control; and promoting horizontal fiscal cooperation in cross-regional environmental governance.

Fiscal Decentralization in Transition Economies

2004 ◽  
pp. 126-141
Author(s):  
A. Chernyavsky ◽  
K. Vartapetov
Keyword(s):  
Public Finance ◽  
Transition Economies ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Government Control ◽  
Finance Reform ◽  
Fiscal Transfers ◽  
Fiscal Autonomy ◽  
Subnational Government ◽  
Tax Autonomy

By employing the methodology developed by the OECD the paper assesses the degree of revenue decentralization in Russia in comparison with other post-communist European countries. The paper provides theoretical arguments underpinning fiscal decentralization, analyzes the composition of subnational government revenues, the level of regional and local tax autonomy and types of intergovernmental fiscal transfers. The analysis presents the composition of revenues depending on the degree of subnational and local government control. In comparison with other transition countries fiscal decentralization in Russia is relatively low. It is concluded that Russia's public finance reform has not progressed towards providing greater fiscal autonomy for regional and local governments.

Fiscal Decentralization and Economic Growth in Nigeria and Ghana

2018 ◽  
Vol 04 (2) ◽  
pp. 81-105
Author(s):  
Jerome Terhemba Andohol ◽  
◽  
Solomon Sooter Kwen ◽  
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization
Sign in / Sign up

Export Citation Format

Share Document