Revisiting the nexus between fiscal decentralization and environment: evidence from fiscally decentralized economies

Safi, Adnan; Wang, Qiu-Su; Wahab, Salman

doi:10.1007/s11356-022-19860-1

Cited by 39 publications

(23 citation statements)

References 46 publications

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“…This effect may decrease and then increase as the level of economic development increases. It may also be reversed by an increase in the degree of fiscal decentralization [ 25 , 26 ].…”

Section: Literature Reviewmentioning

confidence: 99%

A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences

Liu

Zhang

Wang

2022

IJERPH

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Green development is necessary for China to carry out high-quality economic development. As an important institutional arrangement in the vertical government structure, fiscal decentralization supports regional green development. Local government environmental preferences indicate local environmental protection awareness and affect the process of regional green development to a certain extent. Based on the review of relevant theories and literature, this study conducts an empirical analysis based on Chinese provincial panel data from 2007 to 2019 using a two-way fixed effects model and a panel threshold model. Both revenue decentralization and expenditure decentralization have a U-shaped nonlinear relationship with the green development efficiency calculated by the superefficiency SBM model, which includes undesirable output. Neither factor has a positive effect on green development efficiency at this stage, while local government environmental preferences are positively connected to green development efficiency. Furthermore, a moderating effect is observed in the relationship between fiscal decentralization and green development efficiency. Under the same level of revenue decentralization or expenditure decentralization, the stronger the environmental preferences of the local authority are, the higher the green development efficiency. This moderating effect is more significant in coastal areas than inland areas. Further research reveals a threshold for the moderating effect of local government environmental preferences on fiscal decentralization on green development. When the environmental preferences of local government are below the threshold, both revenue decentralization and expenditure decentralization significantly inhibit the improvement in green development efficiency. After the threshold is passed, the negative effects of both on green development efficiency are markedly curtailed. Then, the government performance appraisal system should be further optimized, fiscal decentralization reform should be strengthened, local financial investment in environmental protection should be expanded, and synergistic regional development should be promoted. China’s green development should be promoted to an advanced stage.

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“…This effect may decrease and then increase as the level of economic development increases. It may also be reversed by an increase in the degree of fiscal decentralization [ 25 , 26 ].…”

Section: Literature Reviewmentioning

confidence: 99%

A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences

Liu

Zhang

Wang

2022

IJERPH

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“…On the one hand, the central should mobilize the independent forces of local governments, increase local government R&D funding investment and make good infrastructure construction and other supporting facilities to provide better innovation guarantees. Safi et al (2022b) also showed that fiscal decentralization improves environmental quality. On the other hand, the government should fully play the fundamental role of market allocation of resources, adopt a new road of industrialization, promote the integration of information technology and industrialization, and enhance the transformation and upgrading of industrial structure.…”

Section: Discussionmentioning

confidence: 97%

Does environmental regulation affect urban green technology innovation in China? Evidence from the low-carbon city pilot policy

Liu²

2023

Front. Energy Res.

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The Low-carbon City Pilot (LCCP) policy is a new environmental governance model to achieve carbon neutrality, promote low-carbon pilot city development, and address climate change. Taking LCCP policy as an exogenous shock, this paper examines the impact of LCCP policy on urban green technology innovation and its transmission mechanism from 2005 to 2017. Based on the Difference-in-Difference (DID) method, the following results are obtained: The LCCP policy can promote urban green technology innovation, and the results remain robust through a series of robustness tests. Mechanism analysis shows that LCCP improves the level of green technology innovation in two ways, it encourages local governments to increase R&D funds and forces pollution-intensive and energy-consuming industries to upgrade industrial structures. In addition, the conclusion also reveals that the urban location characteristics and the intensity of environmental regulation have a heterogeneous impact on green technology innovation, with the most significant effect on the western region. Therefore, policymakers must mobilize the autonomy of local governments, increase the investment of local government R&D funds, and strive to spread the pilot policy of low-carbon cities to the whole country to promote industrial transformation.

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“…The virus’s global spread has deterred tourists and bolstered staying in tight-knit, self-sufficient societies. People are less likely to go by automobile and are more likely to avoid crowded local places (Safi et al 2022 ). Several businesses promote remote work to help their workers live healthier lifestyles, decreasing their carbon footprint by reducing business travel and the energy required to power substantial office buildings.…”

Section: Introductionmentioning

confidence: 99%

Low-carbon transition toward green recovery: policy framework after COVID-19

Wang

2023

Econ Change Restruct

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The COVID-19 pandemic has significantly hampered energy transition. Globally, many are worried that energy transition is being neglected in favor of green economic recovery. This study first assesses the state of green economic development in China’s urban areas. Therefore, we propose a low-carbon energy transition road plan for the post-pandemic age and provide a global analysis of the interplay between the energy transition and COVID-19. We examine the barriers to a smooth energy transition during the pandemic from the vantage points of governmental backing, carbon fuel divestment, renewable generation capacity, global distribution chain, and energy poverty. The pandemic created possibilities for a worldwide energy shift. Therefore, we also pinpoint possible windows of opportunity for energy transition afforded by the outbreak from the viewpoints of cost-effectiveness, policy execution efficacy, and renewable energy. Our findings have important implications for post-pandemic green recovery plans and provide new insights into a global low-carbon energy transition framework.

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Revisiting the nexus between fiscal decentralization and environment: evidence from fiscally decentralized economies

Cited by 39 publications

References 46 publications

A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences

A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences

Does environmental regulation affect urban green technology innovation in China? Evidence from the low-carbon city pilot policy

Low-carbon transition toward green recovery: policy framework after COVID-19

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