In recent years, the debate on environmental issues has become a hot topic. Fiscal decentralization is believed to be a crucial driver of environmental sustainability. However, the discussion on the effect of fiscal decentralization (FD) on environmental sustainability has not reached a unanimous conclusion. In this study, we inspect the effect of fiscal decentralization, economic development, technological innovation, economic globalization, and energy use on environmental quality in eight Asia-Pacific Economic Cooperation (APEC) member countries. In addition, we analyze the mechanisms through which fiscal decentralization influences the ecological footprint (EF) through the channels of technological innovation and economic growth. Using the STIRPAT framework, this study employed the CS-ARDL method for short-run and long-run analyses that deal with slope heterogeneity and cross-sectional dependence. The empirical results show that fiscal decentralization and technological innovation mitigate ecological footprint, while economic development, energy consumption, and urbanization negatively affect environmental quality. However, economic globalization is not related to the EF in the sample economies. The results further reveal that FD enhances environmental quality through the channel of technological innovation, while it does not affect the EF through the channel of economic growth. Finally, it is recommended to make a reasoned division between the rights and responsibilities of local government and central government in environmental pollution management, and optimize the environmental system. At the same time, policymakers should encourage technological innovation to reduce the adverse impacts of economic development and energy consumption on the environment.
As an important factor affecting economic and social development, energy poverty (EP) has received widespread concern, and many countries have actively proposed policies to eliminate energy poverty. The purpose of this paper is to clarify the current situation of energy poverty in China, explore the factors that affect energy poverty, find sustainable and effective approaches to alleviate energy poverty, and provide empirical evidence for eliminating energy poverty. This research investigates the effect of fiscal decentralization (FD), industrial structure upgrading (ISU), energy efficiency (EE), and technological innovation (TI), as well as urbanization (URB) on energy poverty using a balanced dataset of 30 provinces in China from 2004 to 2017. The empirical outcomes revealed that fiscal decentralization, industrial upgrading, energy efficiency, and technological innovation significantly reduce energy poverty. Moreover, urbanization is positively and significantly correlated with energy poverty. The outcomes further revealed that fiscal decentralization significantly increases the residents’ access to clean energy and drives energy management agencies and infrastructure. In addition, the heterogeneity analysis results indicate that the effect of fiscal decentralization in reducing energy poverty is greater in regions with high economic development. Finally, mediation analysis denotes that fiscal decentralization indirectly reduces energy poverty by promoting technological innovation and energy efficiency. Finally, based on the results, policy suggestions for eradicating energy poverty are proposed from the perspective of implementing targeted energy alleviation policies reasonably dividing the rights and responsibilities of local and central governments and encouraging scientific and technological innovation.
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