Composite fiscal decentralisation and green innovation: Imperative strategy for institutional reforms and sustainable development in OECD countries

Abstract

Improving environmental quality and fiscal management has become one of the utmost imperative policy agendas for sustainable development. Although many studies explore multiple deriving factors of environmental sustainability; however, very little is known regarding the impact of composite (revenue and expenditure) fiscal decentralisation (FD) on environmental quality. Manifestly, the intergovernmental fiscal relations advocate to ensure the alignment of tax and spending powers to promote sustainable and inclusive growth. Therefore, we explore the asymmetric linkages between composite FD, green innovation, institutional governance and carbon emissions in 32 OECD countries. Our preliminary results confirm non‐linearity and structural changes in data, which instigate us to apply the asymmetric method of moments quantile regression. The overall findings exhibit that composite FD significantly mitigates carbon emissions only at medium to higher (5th–9th) emissions quantiles. In contrast, green innovation reduces carbon emissions from lower to medium (1st–5th) emissions quantiles. Institutional reforms promote environmental sustainability across all emissions quantiles (1st–9th). Interestingly, the emissions‐reducing effect of composite FD, green innovation and institutional governance is highest for higher emissions quantiles and lowest for lower emissions quantiles. These results provide valuable policy recommendations for all stakeholders.

Mediating Role of Risk Perception and Environmental Quality on the Relationship Between Risk Knowledge and Traveler’s Intention in COVID-19

“…(Sönmez and Graefe, 1998) proved in research that geographical damage, safety concerns, damage to equipment, ethical conflicts, psychological taboo, tourism intention, and cost concerns contained a direct negative correlation. Another research paper provided by Sun and Razzaq (2022) determined the negative impacts of political risk, social risk, and cultural risk on the tourism sector of Japan. They analyzed the factors affecting the willingness to utilize balance values.…”

Prediction of COVID-19 Data Using Hybrid Modeling Approaches

“…COVID-19 many prediction models are currently available, including the logistic regression analysis LSTM, ARIMA, and TBATS models (19). Alzahrani et al (20) is examined using the age-structured variant of the SEIR-type for pandemics (21,22). The COVID-19 epidemic dynamics are predicted using a modified SEIR compartmental model (23).…”

Financial Annexation, Green Innovation and Carbon Neutrality in China

“…The goal of financial actions is to speed up economic growth, which raises more energy demand, increasing CO 2 emissions, which harms people's lives and wellbeing. Efforts to make financial goods and services available and cheap to everyone, regardless of personal wealth or company size, are referred to as financial annexation (FA) by Sun and Razzaq (2022) used five proxies of FA to study the link between FA and CO2 emissions in China. Four out of the five indices of FA were shown to have an impact on ES in the country, according to ARDL estimations.…”