Environmental effects of Chinese-style fiscal decentralization and the sustainability implications

Kuai, Peng; Song, Yang; Tao, Aiping; Shuan, Zhang; Khan, Zafar

doi:10.1016/j.jclepro.2019.118089

Cited by 112 publications

(57 citation statements)

References 26 publications

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“…Third, the multi-indicator method. These are many methods, such as pollutant emission density [14], total industrial output value divided by SO 2 emissions [15], expenditure of industrial waste gas treatment facilities divided by SO 2 emissions [16], the proportion of investment in pollution projects in the total industrial output value [17], the proportion of industrial pollution control and control expenditures in sales [16] and comprehensive index of environmental regulations constructed from industrial SO 2 emissions, industrial smoke and dust emissions, and industrial wastewater discharge removal rates [18]. Fourth, the classification research method.…”

Section: Definition Of Environmental Regulationsmentioning

confidence: 99%

An Inverted-U Impact of Environmental Regulations on Carbon Emissions in China’s Iron and Steel Industry: Mechanisms of Synergy and Innovation Effects

Fan

Zhou

2020

Sustainability

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Based on a panel data of China’s iron and steel (IS) industry from 2000 to 2014, this paper explores the impact of environmental regulations on CO2 emissions in the industry. The results show that there is a clear inverted-U relationship between environmental regulations and CO2 emissions in the IS industry. Additionally, there are regional heterogeneity and regulatory intensity on the impact of environmental regulations on CO2 emissions. The results in the eastern region are consistent with the whole sample results, while the upward trend in the central region and the downward trend in the western region together lay the basis for the inverted-U shape of the whole sample. High environmental regulations affect CO2 emissions in an inverted-U shape, while low environmental regulations present a U shape. The mechanisms of environmental regulations affecting CO2 emissions are synergy effect and technological innovation effect. Finally, this paper proposes some policy recommendations according to the above findings.

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Section: Definition Of Environmental Regulationsmentioning

confidence: 99%

An Inverted-U Impact of Environmental Regulations on Carbon Emissions in China’s Iron and Steel Industry: Mechanisms of Synergy and Innovation Effects

Fan

Zhou

2020

Sustainability

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“…One of the advantages of decentralization is that local governments have the authority to manage finances independently (Sari et al, 2018;Sujarwoto, 2017;Kuai, Yang, Tao, Zhang, & Khan, 2019), which among others is to explore all the resources they have to increase local revenue (Akbar et al, 2019;Lestari, Dali, & Abdullah, 2016;Novalistia, 2016). Of course, it must be supported by the implementation of high-quality decentralization by regional leaders and their apparatus.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Data on decentralization is represented by the realization of the budget for government spending (eg, used by Changwony & Paterson, 2019;Kuai et al, 2019;Meliza & Simanjuntak, 2018), assuming that government spending on low public services can force citizens to get involved in corruption in order to receive services more quickly, so that it can be predicted that a culture of corruption grows in the area, including officials who corrupt their regional income, and therefore it is certain that the implementation of decentralization in the area is of poor quality. Conversely, if government spending for public services is high it will reduce corrupt acts from citizens and officials so that it can be ensured that the implementation of decentralization in the area is of high quality (Changwony & Paterson, 2019;Benerjee, 1990;Fisman & Gatti, 2002).…”

Section: B Datamentioning

confidence: 99%

Local Own Revenue, Decentralization and Local Financial Independent

Sari

Muzaki

Mulyatini

et al. 2019

jmi

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The regional autonomy system provides an opportunity for regions in the territory of Indonesia to utilize their sources of income independently so that the implementation of development in the regions does not only rely on finance from the central government. In this study, we are of the opinion that regions that are able to optimize their local own revenue will have an impact on increasing local financial independence. Local financial independence is the ability of a region to finance development in its area. Our other opinion assumes that the relationship between localown revenue and the local financial independence can be strengthened by the implementation of decentralization. With good decentralization, local governments are more transparent in providing all information to the public, can increase accountability because public services are getting closer, local governments can take strategic decisions, improve fiscal management, improve economic growth and market security. The new contribution of this study is related to the literature of the merging of the relationship between local own revenue, decentralization, and local financial independence that was built through Moderated Regression Analysis (MRA) evidence in one of the regions in Indonesia, namely Ciamis. The results of the study show that regional local own revenues influence local financial independence. Meanwhile, decentralization which is proxied using local government expenditures is able to strengthen the relationship of local own revenues to local financial independence. So it can be concluded that the effective implementation of decentralization is able to encourage an increase in regional income that comes from its own sources to realize financial independence in the region. Keywords—Decentralization, Local Financial Independent, Local Own Revenue. Abstrak Sistem otonomi daerah memberikan kesempatan kepada daerah-daerah di wilayah Indonesia untuk memanfaatkan sumber-sumber pendapatannya secara mandiri agar pelaksanaan pembangunan di daerah tidak hanya mengandalkan keuangan yang berasal dari pemerintah pusat. Dalam studi ini, kami berpendapat bahwa daerah yang mampu mengoptimalkan pendapatan asli daerahnya akan berdampak terhadap meningkatnya kemandirian keuangan daerah. Kemandirian keuangan daerah adalah kemampuan suatu daerah dalam membiayai pembangunan di daerahnya. Pendapat kami lainnya menganggap bahwa hubungan pendapatan asli daerah dengan kemandirian keuangan daerah dapat diperkuat oleh pelaksanaan desentralisasi yang baik. Dengan desentralisasi yang baik maka pemerintah daerah lebih transparan dalam memberikan semua informasi kepada publik, dapat meningkatkan akuntabilitas karena pelayanan publik menjadi lebih dekat, pemerintah daerah dapat mengambil keputusan yang strategis, meningkatkan manajemen fiscal, meningkatkan pertumbuhan ekonomi dan keamanan pasar. Kontribusi baru dari studi ini adalah menyangkut literature penggabungan hubungan antara pendapatan asli daerah, desentralisasi, dan kemandirian keuangan daerah yang dibangun melalui Moderated Regression Analysis (MRA) bukti pada salah satu daerah di Indonesia, yaitu Ciamis. Hasil studi menunjukan bahwa pendapatan asli daerah berpengaruh terhadap kemandirian keuangan daerah. Sementara itu desentralisasi yang diproksi menggunakan pengeluaran pemerintah daerah mampu memperkuat hubungan pendapatanasli daerah terhadap kemandirian keuangan daerah. Jadi dapat disimpulkan bahwa pelaksaksanaan desentralisasi yang efektif mampu mendorong peningkatan pendapatan daerah yang berasal dari sumber-sumbernya sendiri untuk mewujudkan kemandirian keuangan di daerah. Kata kunci—Desentralisasi, Kemandirian Keuangan Daerah, Pendapatan Asli Daerah.

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“…Fredriksson and Millimet [13] believed that states are pulled to higher levels of abatement costs by improvements in neighbors with regulations. Kuai et al [14] made an attempt to bridge the gap by making use of two kinds of fiscal decentralizations and found that both the decentralizations have positive effects on environmental improvement.…”

Section: Introductionmentioning

confidence: 99%

Fiscal Decentralization and Environmental Pollution: A Spatial Analysis

Chen

Liu

2020

Discrete Dynamics in Nature and Society

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Based on annual data over the period 2003 to 2017 covering 31 provinces in China, the environmental pollution index and environmental regulation index are constructed. Moran’s I, the widely used spatial autocorrelation index, is used to analyze the spatial distribution of environmental pollution, which provides a fairly high stability of the positive spatial correlation of environmental pollution. Then, the 0-1 matrix, distance weighting matrix, and economic distance mixed matrix are carried out to weigh space separately. To analyze the impact of fiscal decentralization on environmental pollution, the spatial Durbin model is employed. In the meanwhile, fiscal decentralization is measured from the perspective of both fiscal expenditure decentralization and fiscal revenue decentralization. The results show that the impact of fiscal decentralization on environmental pollution is positive and appears the phenomenon of “race to bottom.” To improve environmental quality, appropriate environmental regulation target, implementing green GDP accounting, and adjusting economic structure should be adopted.

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Environmental effects of Chinese-style fiscal decentralization and the sustainability implications

Cited by 112 publications

References 26 publications

An Inverted-U Impact of Environmental Regulations on Carbon Emissions in China’s Iron and Steel Industry: Mechanisms of Synergy and Innovation Effects

An Inverted-U Impact of Environmental Regulations on Carbon Emissions in China’s Iron and Steel Industry: Mechanisms of Synergy and Innovation Effects

Local Own Revenue, Decentralization and Local Financial Independent

Fiscal Decentralization and Environmental Pollution: A Spatial Analysis

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