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The Evolution of Green Fiscal Policy Instruments in China: Content Analysis of Policy Documents From 2001 to 2023

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  • Zetian Wang
  • Wensheng He

Abstract

The green fiscal policy instruments are one of the key tools employed by the Chinese government to address environmental pollution. This study applies content analysis to construct a three-dimensional analytical framework that includes policy instruments, policy development, and the Pressure-State-Response (PSR) framework. Using this framework, the study examines 169 central-level green fiscal policy documents from 2001 to 2023, demonstrating the internal structure and composition ratios of these instruments. Additionally, we explored the historical evolution, frequency of use, and driving factors behind the policies. The study shows that the severity of environmental pollution and the central government’s attention jointly drive a significant increase in the variety and number of green fiscal policy instruments. However, the government tends to rely heavily on regulatory policy instruments, while fiscal instruments aimed at encouraging green innovation, promoting green markets, and promoting coordination with financial policies remain underdeveloped. In light of this, future green fiscal policy formulation should focus on enhancing the diversity of policy instruments, strengthening the coordination between policy instruments, improving interdepartmental collaboration, and increasing social participation.

Suggested Citation

  • Zetian Wang & Wensheng He, 2025. "The Evolution of Green Fiscal Policy Instruments in China: Content Analysis of Policy Documents From 2001 to 2023," SAGE Open, , vol. 15(2), pages 21582440251, June.
  • Handle: RePEc:sae:sagope:v:15:y:2025:i:2:p:21582440251340151
    DOI: 10.1177/21582440251340151
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