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

Bibliographic Data

ID15515249
AuthorsRuichao Liu (0009-0003-4207-3080, Qingdao University), Xiaoyan Zhang (0009-0008-8425-9349, Qingdao University), Pengcheng Wang (0000-0002-0241-1888, Shandong University of Science and Technology, corresponding author)
Year2022
Volume19
Issue16
Pages9964-9964
Publication date2022-08-12
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueInternational Journal of Environmental Research and Public Health (JOURNAL)
Journal identifiersISSN: 1661-7827 • E-ISSN: 1660-4601
PublisherMultidisciplinary Digital Publishing Institute (PUBLISHER • CH)
DOI10.3390/ijerph19169964
PMID36011608
OpenAlexW4291465243
LanguageEN
Citations received6
References cited29

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

Business · Central government · Decentralization · Econometrics · Economic system · Economics · Environmental quality · Fixed effects model · Geography · Government (linguistics · Local government · Market economy · Panel data · Public economics · Revenue · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Ecology · Finance

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Unique citing works6
Citations per year1,5
Citation span2022 - 2026 (5)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 6

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