IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i15p6487-d1445422.html
   My bibliography  Save this article

A Study of Spatial Spillovers from Fiscal Decentralization on the Efficiency of Green Economy—And the Moderating Role of Financial Decentralization

Author

Listed:
  • Haonan Chen

    (School of Economics, Capital University of Economics and Business, Fengtai District, Beijing 100070, China)

  • Xiaoyang Yang

    (School of Economics, Capital University of Economics and Business, Fengtai District, Beijing 100070, China)

Abstract

A robust fiscal and financial system constitutes a fundamental pillar of national governance. This paper investigates the spatial correlation between fiscal decentralization, financial decentralization, and local green economic efficiency using panel data from 285 cities in China. The findings reveal several key insights. First, fiscal decentralization hampers local green economic efficiency enhancement but exerts a “warning effect” on neighboring regions. In contrast, financial decentralization promotes local green economic efficiency and triggers a “clustering effect” on neighboring areas, indicating an agglomeration impact. Second, synergies from financial decentralization on local green economic efficiency are not immediately apparent, while they mitigate the enhancement of neighboring regions’ green economic efficiency. Third, the maturity of the financial market system and the completeness of infrastructure positively influence the impact of financial decentralization on green economic efficiency. Fourth, fiscal and financial decentralization significantly impacts green economic efficiency in the short term, yet their long-term effects are negligible. Consequently, this paper recommends enhancing infrastructure development and instituting a dynamic mechanism for adjusting fiscal and financial decentralization. Based on the aforementioned findings, this paper provides corresponding countermeasure recommendations. These recommendations not only contribute academically to the study of green efficiency from the perspectives of fiscal and financial decentralization but also offer a Chinese model for other developing countries seeking to balance fiscal, financial, and green sustainable development.

Suggested Citation

  • Haonan Chen & Xiaoyang Yang, 2024. "A Study of Spatial Spillovers from Fiscal Decentralization on the Efficiency of Green Economy—And the Moderating Role of Financial Decentralization," Sustainability, MDPI, vol. 16(15), pages 1-23, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6487-:d:1445422
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/15/6487/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/15/6487/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    2. Pautrel, Xavier, 2009. "Pollution and life expectancy: How environmental policy can promote growth," Ecological Economics, Elsevier, vol. 68(4), pages 1040-1051, February.
    3. J. Lelieveld & J. S. Evans & M. Fnais & D. Giannadaki & A. Pozzer, 2015. "The contribution of outdoor air pollution sources to premature mortality on a global scale," Nature, Nature, vol. 525(7569), pages 367-371, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sichao Wei & David Aadland, 2021. "Pollution permits, green taxes, and the environmental poverty trap," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1032-1052, May.
    2. Beatriz Jiménez‐Parra & Daniel Alonso‐Martínez & José‐Luis Godos‐Díez, 2018. "The influence of corporate social responsibility on air pollution: Analysis of environmental regulation and eco‐innovation effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1363-1375, November.
    3. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    4. Chakraborty, Shankha & Papageorgiou, Chris & Pérez Sebastián, Fidel, 2010. "Diseases, infection dynamics, and development," Journal of Monetary Economics, Elsevier, vol. 57(7), pages 859-872, October.
    5. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    6. Alex Hollingsworth & Krzysztof Karbownik & Melissa A. Thomasson & Anthony Wray, 2024. "The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality," American Economic Review, American Economic Association, vol. 114(7), pages 2201-2238, July.
    7. Karen Clay & Werner Troesken & Michael Haines, 2014. "Lead and Mortality," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 458-470, July.
    8. Lesly Cassin, 2018. "The effects of migration and pollution externality on cognitive skills in Caribbean economies: a Theoretical analysis," EconomiX Working Papers 2018-30, University of Paris Nanterre, EconomiX.
    9. Lanzi, Elisa & Dellink, Rob & Chateau, Jean, 2018. "The sectoral and regional economic consequences of outdoor air pollution to 2060," Energy Economics, Elsevier, vol. 71(C), pages 89-113.
    10. Daron Acemoglu & Simon Johnson & James A. Robinson, 2012. "The Colonial Origins of Comparative Development: An Empirical Investigation: Reply," American Economic Review, American Economic Association, vol. 102(6), pages 3077-3110, October.
    11. Héctor Jorquera & Ana María Villalobos, 2020. "Combining Cluster Analysis of Air Pollution and Meteorological Data with Receptor Model Results for Ambient PM 2.5 and PM 10," IJERPH, MDPI, vol. 17(22), pages 1-25, November.
    12. Xavier Pautrel, 2015. "Abatement Technology and the Environment–Growth Nexus with Education," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(3), pages 297-318, July.
    13. Raffin, Natacha & Seegmuller, Thomas, 2014. "Longevity, pollution and growth," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 22-33.
    14. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    15. Daron Acemoglu & Simon Johnson & James A. Robinson, 2011. "Hither Thou Shalt Come, But No Further: Reply to "The Colonial Origins of Comparative Development: An Empirical Investigation: Comment"," NBER Working Papers 16966, National Bureau of Economic Research, Inc.
    16. Fraser Summerfield & Livio Di Matteo, 2021. "Influenza Pandemics and Macroeconomic Fluctuations in Recent Economic History," Working Papers 210002, Canadian Centre for Health Economics.
    17. Ellen Banzhaf & Sally Anderson & Gwendoline Grandin & Richard Hardiman & Anne Jensen & Laurence Jones & Julius Knopp & Gregor Levin & Duncan Russel & Wanben Wu & Jun Yang & Marianne Zandersen, 2022. "Urban-Rural Dependencies and Opportunities to Design Nature-Based Solutions for Resilience in Europe and China," Land, MDPI, vol. 11(4), pages 1-25, March.
    18. Huning, Thilo R. & Wahl, Fabian, 2017. "Lord of the lemons: Origin and dynamics of state capacity," Hohenheim Discussion Papers in Business, Economics and Social Sciences 22-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    19. Rogers Kanee & Precious Ede & Omosivie Maduka & Golden Owhonda & Eric Aigbogun & Khalaf F. Alsharif & Ahmed H. Qasem & Shadi S. Alkhayyat & Gaber El-Saber Batiha, 2021. "Polycyclic Aromatic Hydrocarbon Levels in Wistar Rats Exposed to Ambient Air of Port Harcourt, Nigeria: An Indicator for Tissue Toxicity," IJERPH, MDPI, vol. 18(11), pages 1-21, May.
    20. Scott, Andrew J., 2023. "The economics of longevity – An introduction," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).

    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:gam:jsusta:v:16:y:2024:i:15:p:6487-:d:1445422. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.