“…In this regard, contemporary research has been attempted to discuss environmental issues with the economic perspective. The relationships among environment, industrial structure, foreign direct investment, trade, corporate ownership, economic agglomeration and market segmentation are emerging topics to be discussed recently (Zhou et al, 2013) (Ren et al, 2014) and (Witt, 2014), while these studies explored the behavior of the fiscal system and the government with changes in the environment quality, in particular the impact of fiscal decentralization on the environment (Rodriguez-Gonzalez et al, 2018) & (Lepitzki and Axsen, 2018). It has been noted that fiscal decentralization and vertical fiscal imbalances (VFIs) contribute to improving the quality of the environment through better public expenditure structure (Alemzero et al, 2020b) and (Alemzero et al, 2020a).…”