The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches
Despite the People’s Republic of China government being the most aggressive in pursuing the carbon neutrality goal, it remains the world’s largest carbon emitter and polluting country. This study used 31 provinces’ panel data from 2010 to 2019 to compare fiscal decentralization’s impact on regional...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-06-01
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| Series: | Frontiers in Environmental Science |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.945922/full |
| _version_ | 1818549091131457536 |
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| author | Jing Xia Xuegang Zhan Rita Yi Man Li Lingxi Song |
| author_facet | Jing Xia Xuegang Zhan Rita Yi Man Li Lingxi Song |
| author_sort | Jing Xia |
| collection | DOAJ |
| description | Despite the People’s Republic of China government being the most aggressive in pursuing the carbon neutrality goal, it remains the world’s largest carbon emitter and polluting country. This study used 31 provinces’ panel data from 2010 to 2019 to compare fiscal decentralization’s impact on regional carbon emissions. It applied SBM-DEA undesirable models to calculate the Malmquist index and study environmental governance performance. It then used the systematic GMM model to explore fiscal decentralization’s influence on environmental governance performance. It is found that fiscal decentralization in eastern China exhibited a strong positive relationship with environmental governance performance. With high tax autonomy, local governments implemented the best tax policies for clean production, raising enthusiasm for enterprises’ green production. Nevertheless, there was no relationship between fiscal decentralization and environmental governance in poorer central and western regions with less tax collected. Benefits that arose from fiscal decentralization were limited. Moreover, more elite officials working in affluent cities and wealthier citizens have a higher expectation of environmental governance. These lead to better environmental and carbon emission policies. This paper also brings policy implications: 1) the central government should raise local government flexibility to use financial resources for environmental management. 2) Local government performance appraisal should include environmental protection (including carbon emission control). 3) The production taxes retained by local governments should be minimized to reduce governments’ incentives to obtain taxes from polluting/high energy consumption industries. 4) Raise government officials’ income in poorer regions to attract talented officials to work. |
| first_indexed | 2024-12-12T08:28:54Z |
| format | Article |
| id | doaj.art-cf5c6fba2cdd472ca51d49d31680e13d |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-12-12T08:28:54Z |
| publishDate | 2022-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-cf5c6fba2cdd472ca51d49d31680e13d2022-12-22T00:31:09ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-06-011010.3389/fenvs.2022.945922945922The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM ApproachesJing Xia0Xuegang Zhan1Rita Yi Man Li2Lingxi Song3School of Accounting, Chongqing Technology and Business University, Chongqing, ChinaSchool of Accounting, Chongqing Technology and Business University, Chongqing, ChinaSustainable Real Estate Research Center/Department of Economics and Finance, Hong Kong Shue Yan University, North Point, Hong Kong SAR, ChinaChakrabongse Bhuvanarth International Institute for Interdisciplinary Studies, Rajamangala University of Technology Tawan-Ok, Bangkok, ThailandDespite the People’s Republic of China government being the most aggressive in pursuing the carbon neutrality goal, it remains the world’s largest carbon emitter and polluting country. This study used 31 provinces’ panel data from 2010 to 2019 to compare fiscal decentralization’s impact on regional carbon emissions. It applied SBM-DEA undesirable models to calculate the Malmquist index and study environmental governance performance. It then used the systematic GMM model to explore fiscal decentralization’s influence on environmental governance performance. It is found that fiscal decentralization in eastern China exhibited a strong positive relationship with environmental governance performance. With high tax autonomy, local governments implemented the best tax policies for clean production, raising enthusiasm for enterprises’ green production. Nevertheless, there was no relationship between fiscal decentralization and environmental governance in poorer central and western regions with less tax collected. Benefits that arose from fiscal decentralization were limited. Moreover, more elite officials working in affluent cities and wealthier citizens have a higher expectation of environmental governance. These lead to better environmental and carbon emission policies. This paper also brings policy implications: 1) the central government should raise local government flexibility to use financial resources for environmental management. 2) Local government performance appraisal should include environmental protection (including carbon emission control). 3) The production taxes retained by local governments should be minimized to reduce governments’ incentives to obtain taxes from polluting/high energy consumption industries. 4) Raise government officials’ income in poorer regions to attract talented officials to work.https://www.frontiersin.org/articles/10.3389/fenvs.2022.945922/fullfiscal decentralizationenvironmental governance performancecarbon emissionsSBM-DEA undesirable modelsmalmquist index |
| spellingShingle | Jing Xia Xuegang Zhan Rita Yi Man Li Lingxi Song The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches Frontiers in Environmental Science fiscal decentralization environmental governance performance carbon emissions SBM-DEA undesirable models malmquist index |
| title | The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches |
| title_full | The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches |
| title_fullStr | The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches |
| title_full_unstemmed | The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches |
| title_short | The Relationship Between Fiscal Decentralization and China’s Low Carbon Environmental Governance Performance: The Malmquist Index, an SBM-DEA and Systematic GMM Approaches |
| title_sort | relationship between fiscal decentralization and china s low carbon environmental governance performance the malmquist index an sbm dea and systematic gmm approaches |
| topic | fiscal decentralization environmental governance performance carbon emissions SBM-DEA undesirable models malmquist index |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.945922/full |
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