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Transformative Routes to Sustainable Development

The Nexus Between Fiscal Decentralization and Sustainable Environment in Developing Countries

Bibliographic Data

ID21641524
AuthorsSajjad Ali (0000-0002-2999-768X, Department of Economics, The Islamia University of Bahawalpur, Bahawalpur, Pakistan), Abid Rashid Gill (0000-0003-1961-5139, Department of Economics, The Islamia University of Bahawalpur, Bahawalpur, Pakistan), Minhaj Ali (0000-0002-5876-1297, Advanced Research Centre, European University of Lefke, Mersin, Turkey, corresponding author)
Year2025
Volume34
Issue2
Pages291-317
Publication date2025-06-01
Open AccessYes
TypeARTICLE
VenueThe Journal of Environment & Development (JOURNAL)
Journal identifiersISSN: 1070-4965 • E-ISSN: 1552-5465
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/10704965241295757
OpenAlexW4403715548
LanguageEN
Citations received1
References cited57

The debate on fiscal decentralization (FD)’s potential impact on environmental sustainability is expanding, but actual evidence is few. A balanced dataset of 21 developing nations from 2000 to 2020 is used to explore how FD impacts environmental sustainability. We employ second-generation unit root tests, Westerlund cointegration, and cross-section autoregressive distributed lag (CS-ARDL) models for empirical assessment. In addition, a novel Environmental Sustainable Development Index (ESDI) is used. The results demonstrate FD enhances ESDI. Economic growth, total natural resource rent, and population growth impair sustainability, while institutional quality enhances it. Eco-friendly natural resource exploitation helps countries become more sustainable. These goals require modern sustainable development methods. Analysis of FD and institutional quality policies reveals how nations combat environmental pollution, providing policymakers with empirical evidence for global climate change initiatives. According to the findings, local governments should be empowered to reduce emissions, mitigate environmental harm, and establish sustainable industrial practices

Business · Decentralization · Developing country · Economic growth · Economic system · Economics · Market economy · Political science · Sociology · Sustainable development · Transformative learning · Engineering · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Sustainable Development and Environmental Policy

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Citations per year1
Citation span2025 - 2025 (1)
Highly citedNo

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