The impact of fiscal decentralization on CO2 emissions in China

By Shulei Cheng, Wei Fan, Jiandong Chen, Fanxin Meng, Gengyuan Liu, M. Song, Zhifeng Yang. Energy, 2020

150 citations recorded by the source corpus.

Abstract This paper evaluates the impact of fiscal decentralization on CO2 emissions in China. We build an equation to combine fiscal decentralization and CO2 emissions and decompose it using the logarithmic mean Divisia index (LMDI) decomposition technique. Then, we examine the nonlinear impact of fiscal decentralization on CO2 emissions using a dynamic panel regression model and Chinese interprovincial data from 1997 to 2015. The empirical results show that the direct impact of fiscal decentralization on CO2 emissions is nonlinear, and the higher the per capita fiscal expenditure, the more fiscal decentralization can reduce CO2 emissions. Moreover, the government’s emissions reduction policies effectively reduce CO2 emissions only when they are conducted at the provincial and city levels, and some differences among regions remain.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/7dc818db87d626d91e3c04e2cd3f90dcc2372c21

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In Economics and Econometrics

1. Haider Malik
2. H. An
3. Marria Hassan
4. Zepeng Zhao
5. Lingyan Meng
6. Asif Razzaq

Citations in the corpus

• Asymmetric impact of fiscal decentralization and environmental innovation on carbon emissions: Evidence from highly decentralized countries (2021, methodology): “A large number of studies have been carried out to examine the FD effects on environmental quality.(11,13,17,49,50) However, empirical literature produced inconclusive results, such as Sigman(51) explored decentralization impact on 47 countries covering the years 1979 to 1999 using a linear model.”