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Government Environmental Expenditure, Budget Management, and Regional Carbon Emissions: Provincial Panel Data from China

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  • Ziru Tang

    (School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China)

  • Zenglian Zhang

    (School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China)

  • Wenyueyang Deng

    (School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China)

Abstract

To explore the impact of government fiscal intervention on regional carbon emissions, this paper employs a two-way fixed-effects model to analyze data from 30 provinces in China, spanning the period from 2008 to 2017. This study investigates the effects of local government environmental expenditure and government budget on the per capita volume, intensity, and performance of regional carbon emissions. The results show that government environmental expenditure is beneficial to reducing regional carbon emissions and improving regional carbon emission performance. Second, the smaller the deviation between the government budget and final accounts, the more conducive it is to reducing carbon emissions. Third, we found that government environmental expenditure has the strongest inhibitory effect on regional carbon emissions in the eastern region, followed by the central region, and the weakest in the western region. Finally, government financial transparency positively moderates the inhibitory effect of government budget management on regional carbon emissions, that is, when fiscal transparency is high, the amplification effect of budget deviation on regional carbon emissions is weakened.

Suggested Citation

  • Ziru Tang & Zenglian Zhang & Wenyueyang Deng, 2024. "Government Environmental Expenditure, Budget Management, and Regional Carbon Emissions: Provincial Panel Data from China," Sustainability, MDPI, vol. 16(15), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6707-:d:1450447
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    References listed on IDEAS

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    1. Shahbaz, Muhammad & Song, Malin & Ahmad, Shabbir & Vo, Xuan Vinh, 2022. "Does economic growth stimulate energy consumption? The role of human capital and R&D expenditures in China," Energy Economics, Elsevier, vol. 105(C).
    2. Duc Hong Vo & Ngoc Phu Tran & Toan Pham-Khanh Tran & Quan Thai-Thuong Le & Phuc Van Nguyen, 2023. "Government expenditure, budget deficit and shadow economy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 26(4), pages 442-460, October.
    3. Wei, Silin & Yang, Yinsheng & Xu, Ying, 2023. "Regional development, agricultural industrial upgrading and carbon emissions: What is the role of fiscal expenditure? —-Evidence from Northeast China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1858-1871.
    4. Juhyun Oh, 2023. "The Effects of Local Government Expenditures on Carbon Dioxide Emissions: Evidence from Republic of Korea," Sustainability, MDPI, vol. 15(20), pages 1-15, October.
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    Cited by:

    1. Lingyu Li & Zhichao Liu, 2024. "Sustainable Evolution of China’s Provincial New Quality Productivity Based on Three Dimensions of Multi-Period Development and Combination Weights," Sustainability, MDPI, vol. 16(24), pages 1-17, December.
    2. Igor K. Klioutchnikov1 & Tatyana V. Saakyan, 2025. "Economic Foundations of Rationality and Efficiency of State Subsidies to Business Entities," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 74-91, February.

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