Conditional impacts of political and fiscal factors on state environmental budgets

Abstract

Maintaining fiscal responsiveness to deteriorating environmental conditions is a critical concern for civil society and public managers. Drawing from multiple theoretical perspectives and panel data of state environmental agency appropriations, we add to the budgeting literature on this salient topic with an examination of the legal, political, institutional, and fiscal factors that drive, and condition, environmental budgets. Given the influence of environmental pollution on funding—as stressed by previous literature—we offer evidence that such impacts are moderated by business interests, political party control in government, and fiscal capacity. Findings from this investigation provide insights into fiscal responsiveness and environmental governance at the state level, which can help elucidate and guide other federal and state co‐funded programs.