IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v86y2025ipcs154461232501791x.html

Local government competition, fiscal decentralization, and environmental governance efficiency

Author

Listed:
  • Li, Guoyuan
  • Zhou, Ping
  • Wu, Rui

Abstract

This study investigates the impact of local government competition on environmental governance efficiency using a panel dataset of Chinese prefecture-level cities from 2011 to 2022. The baseline regression results indicate that intergovernmental competition significantly enhances environmental governance efficiency. Mediation analysis further reveals that promoting fiscal decentralization serves as an important channel through which local government competition improves environmental outcomes. Moderation analysis confirms that public environmental concern, green total factor energy efficiency, and total factor productivity all strengthen the positive relationship between government competition and environmental governance efficiency. Moreover, heterogeneity analysis shows that the effects of local government competition vary depending on the level of green innovation and economic density across cities.

Suggested Citation

  • Li, Guoyuan & Zhou, Ping & Wu, Rui, 2025. "Local government competition, fiscal decentralization, and environmental governance efficiency," Finance Research Letters, Elsevier, vol. 86(PC).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pc:s154461232501791x
    DOI: 10.1016/j.frl.2025.108537
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232501791X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.108537?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:86:y:2025:i:pc:s154461232501791x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.