Effects of fiscal decentralisation on the environment: new evidence from China

Liu, Liangliang; Li, Linmu

doi:10.1007/s11356-019-06818-z

Cited by 33 publications

(16 citation statements)

References 37 publications

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“…In Canada and the United Kingdom, fiscal expenditure decentralization is positively interlinked with an ecological footprint in the long run. These results are also in line with previous literature such as L. Liu and Li (2019), You et al (2019), Du and Sun (2021), Li et al (2021); Shan et al (2021) and Y. Cheng et al (2021) as these studies show a positive relationship between fiscal decentralization and environmental degradation in the long run.…”

Section: Fiscal Decentralization and Environmental Degradationsupporting

confidence: 93%

“…These results are supported by previous literature. According to L. Liu and Li (2019), the possible explanation is as fiscal decentralization (expenditure decentralization) increases, local governments seeking to maximize their benefits choose to focus on the development of the local economy than improving environmental quality. Such a strategy intensifies pollution in the environment.…”

Section: Fiscal Decentralization and Environmental Degradationmentioning

confidence: 99%

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The Impact of Nonlinear Fiscal Decentralization, Green Energy, and Policy Uncertainty on Sustainable Environment? A New Perspective From Ecological Footprint in Five OECD Countries

Zahra

Badeeb

2022

Preprint

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The paper explores the short-run and long-run asymmetric impact of fiscal decentralization, green energy, and economic policy uncertainty on environmental sustainability proxied by ecological footprint. Using the Nonlinear Autoregressive Distributed lag (NARDL) approach in selected five OECD countries, we find that ecological footprint responds to positive and negative fiscal decentralization asymmetrically in the long run and short run. However, the nature of the response varies significantly across countries. The result also suggests that green energy is a major factor in reducing the ecological footprint in all countries except Canada. Finally, economic policy uncertainty plays a negative and significant role in the ecological footprint in the UK, US, and Germany while insignificant in Australia and Canada. Implications for effective environmental policies are discussed.

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Section: Fiscal Decentralization and Environmental Degradationsupporting

confidence: 93%

Section: Fiscal Decentralization and Environmental Degradationmentioning

confidence: 99%

The Impact of Nonlinear Fiscal Decentralization, Green Energy, and Policy Uncertainty on Sustainable Environment? A New Perspective From Ecological Footprint in Five OECD Countries

Zahra

Badeeb

2022

Preprint

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“…Theoretically, fiscal decentralization and ecological sustainability are interlinked (L. Liu and Li 2019 ). Fiscal decentralization, according to first-generation fiscal federalism (FGFF), is beneficial to environmental sustainability.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of fiscal decentralization, green energy, and economic policy uncertainty on sustainable environment: a new perspective from ecological footprint in five OECD countries

Zahra¹,

Badeeb

2022

Environ Sci Pollut Res

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The paper explores the short-run and long-run asymmetric impact of fiscal decentralization, green energy, and economic policy uncertainty on environmental sustainability proxied by ecological footprint. Using the Nonlinear Autoregressive Distributed lag (NARDL) approach in selected five OECD countries, we find that ecological footprint responds to positive and negative fiscal decentralization asymmetrically in the long run and short run. However, the nature of the response varies significantly across countries. The result also suggests that green energy is a major factor in reducing the ecological footprint in all countries except Canada. Finally, economic policy uncertainty plays a negative and significant role in the ecological footprint in the UK, USA, and Germany while insignificant in Australia and Canada . Implications for effective environmental policies are discussed.

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“…where FED and FRD denote fiscal spending decentralization and fiscal revenue decentralization, respectively. According to the measurement method of fiscal decentralization by and Liu and Li (2019), FED (FRD) is equal to local per capita fiscal budget expenditure (revenue)/local per capita fiscal budget expenditure (revenue) and central per capita fiscal budget expenditure (revenue). LFG is the local fiscal self-sufficiency rate, which is measured by the difference between local fiscal budget expenditure and local fiscal budget revenue/local fiscal budget expenditure.…”

Section: Measuring Vfimentioning

confidence: 99%

How does vertical fiscal imbalance affect CO2 emissions ? the role of capital mismatch

Feng

Liu

2022

Preprint

Self Cite

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The issue of climate warming caused by greenhouse gases is an important practical issue. This research aims to explore the impact of vertical fiscal imbalance (VFI) on CO2 emissions from the perspective of theoretical analysis and empirical research. This study uses panel data from 30 provinces in China from 2004 to 2018 to test this issue. Results show that VFI has a significant positive impact on CO2 emissions and that capital misallocation exacerbates the positive impact of VFI on CO2 emissions. These research results also have significant temporal heterogeneity. In the sample results after 2008, the results are more significant. These conclusions provide an economic and political reference for local governments to achieve CO2 neutrality and CO2 peaking policy goals and to promote in-depth reform of the fiscal system.

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Effects of fiscal decentralisation on the environment: new evidence from China

Cited by 33 publications

References 37 publications

The Impact of Nonlinear Fiscal Decentralization, Green Energy, and Policy Uncertainty on Sustainable Environment? A New Perspective From Ecological Footprint in Five OECD Countries

The Impact of Nonlinear Fiscal Decentralization, Green Energy, and Policy Uncertainty on Sustainable Environment? A New Perspective From Ecological Footprint in Five OECD Countries

The impact of fiscal decentralization, green energy, and economic policy uncertainty on sustainable environment: a new perspective from ecological footprint in five OECD countries

How does vertical fiscal imbalance affect CO2 emissions ? the role of capital mismatch

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