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Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China

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  • Caihua Zhou

    (School of Public Finance and Taxation, Zhejiang University of Finance and Economics, Hangzhou 310018, China)

  • Xinmin Zhang

    (Institute of Ecological Civilization, Jiangxi University of Finance and Economics, Nanchang 330013, China)

Abstract

This paper uses both fiscal expenditure policy and fiscal revenue policy as input indicators and selects environmental pollution control results reflecting different forms and sources of pollution as output indicators. The efficiency of fiscal policies for environmental pollution control (EFPE) of 30 provincial-level administrative divisions in China from 2007 to 2017 is measured by adopting the data envelopment analysis (DEA) method. Then, the spatial effect of fiscal decentralization on EFPE is empirically analyzed by using the spatial lag model (SLM). The results show that EFPE values in China have been greatly improved overall since 2014. The change in technical efficiency (TE) is caused mainly by the change in pure technical efficiency (PTE). EFPE values have regional heterogeneity and convergence. The eastern region has clearly higher EFPE values than other regions. The growth rate of the low efficient region is greater than that of the high efficient region. Fiscal expenditure decentralization has a direct negative effect and spatial spillover effect on EFPE values, while fiscal revenue decentralization has a non-significant effect. Based on these results, this paper proposes the following policy implications: increasing the level of fiscal expenditure of environmental pollution control and improving the central transfer payment system for environmental protection; reforming the government performance assessment system and innovating the conditions of government expenditure on environmental pollution control; and promoting horizontal fiscal cooperation in cross-regional environmental governance.

Suggested Citation

  • Caihua Zhou & Xinmin Zhang, 2020. "Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China," IJERPH, MDPI, vol. 17(23), pages 1-19, December.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:23:p:8974-:d:455127
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    2. Maxwell Chukwudi Udeagha & Marthinus Christoffel Breitenbach, 2023. "The Role of Fiscal Decentralization in Limiting CO2 Emissions in South Africa," Biophysical Economics and Resource Quality, Springer, vol. 8(3), pages 1-30, September.
    3. Maxwell Chukwudi Udeagha & Marthinus Christoffel Breitenbach, 2023. "Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-46, December.
    4. Kun Xiao & Wahid Ullah & Jiaqi Fu & Xinmin Zhang, 2023. "Poverty Alleviation Efficiency of Tourism and Its Spatiotemporal Differentiation in Jiangxi Province of China Based on the DEA Model," SAGE Open, , vol. 13(2), pages 21582440231, April.
    5. Haijie Wang & Yong Geng & Jingxue Zhang & Xiqiang Xia & Yanchao Feng, 2021. "Ecological Civilization Demonstration Zone, Air Pollution Reduction, and Political Promotion Tournament in China: Empirical Evidence from a Quasi-Natural Experiment," IJERPH, MDPI, vol. 18(22), pages 1-12, November.

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