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Environmental Regulation, Fiscal Decentralization, and Agricultural Carbon Intensity: A Challenge to Ecological Sustainability Policies in the United States

Author

Listed:
  • Nihal Ahmed

    (School of Economics and Management, Northwest Agricultural & Forestry University, Xi’an 712100, China)

  • Zeeshan Hamid

    (Department of Management Sciences, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad 44000, Pakistan)

  • Khalil Ur Rehman

    (Institute of Business Administration, Faculty of Administrative and Management Sciences, Khwaja Fareed University of Engineering and Information Technology, Rahim Yar Khan 64200, Pakistan)

  • Piotr Senkus

    (Faculty of Economic Sciences, University of Warsaw, 44/50 Dluga Street, 03-815 Warsaw, Poland)

  • Nisar Ahmed Khan

    (School of Economics and Management, Beijing University of Technology, Beijing 100081, China)

  • Aneta Wysokińska-Senkus

    (Faculty of Management and Command, War Studies University, 00-910 Warsaw, Poland)

  • Barbara Hadryjańska

    (Department of Economics, Faculty of Economics, Poznań University of Life Sciences, ul. Wojska Polskiego 28, 60-637 Poznań, Poland)

Abstract

Investigating the fiscal decentralization’s effect on the carbon intensity of agricultural production may assist the United States in reaching its carbon peak and becoming carbon neutral. This paper delves into the investigation of the spatiotemporal patterns and internal relationships between fiscal decentralization, agricultural carbon intensity, and environmental regulation. The goal was achieved by using the spatial Durbin model using panel data for 49 states of the United States from 2000 to 2019. The study has found that environmental regulations play a significant role in reducing regional carbon emissions in agriculture and contribute positively to carbon emissions control. However, fiscal decentralization, which grants local governments more financial autonomy, has a positive but insignificant impact on carbon emissions, indicating that the prioritization of economic development and carbon control over environmental protection is favored by local governments. In examining the impact of environmental regulations on carbon emissions, the study reveals that fiscal decentralization does not play a substantial role in moderating this relationship. To promote low-carbon agriculture projects and ensure coordinated economic and environmental development, the study recommends optimizing the fiscal decentralization system, formulating different policies for different regions, and regulating the competencies of local governments through an effective examination system. The study concludes that it is crucial to obtain data at the city or county level to accurately understand the relationship between agricultural carbon intensity, environmental regulation, and fiscal decentralization. As a result, the central government must focus on perfecting the fiscal decentralization system, developing a differentiated agricultural carbon emission control system, controlling competition among local governments, and perfecting a political performance assessment system.

Suggested Citation

  • Nihal Ahmed & Zeeshan Hamid & Khalil Ur Rehman & Piotr Senkus & Nisar Ahmed Khan & Aneta Wysokińska-Senkus & Barbara Hadryjańska, 2023. "Environmental Regulation, Fiscal Decentralization, and Agricultural Carbon Intensity: A Challenge to Ecological Sustainability Policies in the United States," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5145-:d:1096999
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