Study On The Influence Of Chinese Fiscal Decentralization On Environmental Pollution Control

The last 30 years of reforming and opening, with the urbanization and modernization process speeding up. The economic achievements of China has made so remarkable that had drawn the whole world’s attention.This rapid developmentof economic was closely association with the fiscal decentralization system of China. From this perspective, fiscal decentralization arouse governments to pursue economic growth. The fiscal decentralization system of China is thecombination of political centralization and economic decentralization, Under the fiscal decentralization, The central government set GDP as the main evaluation index to assessment government achievement. Under the double pressures of political promotion and financial constraints. In order to get a political promotion, the government tends to spend its own financial resources and other central transfer payments on faster economic growth projects, which cause the shortage of spending on environmental protection projects. At the same time, in order to expand financial resources, the governments attracting severely environmental pollution enterprises with preferential policies which maybe included a lower environmental protection Reducing emissions standards and so on. The key point of this paper is that fiscal decentralization is majorly accounted for the pollution of China.At first, we based on the current system of fiscal decentralization, we analysis the relationship between fiscal decentralization and thethe investment in treatment of environmental pollution. Then, adopting the provincial panel data of China from 2000 to 2013, use the expenditure decentralization degree index as the degree of fiscal decentralization index to analyzed the relationship between the investment in treatment of environment pollution and fiscal decentralization.The results of this analysis indicate that the investment in treatment of environment pollution is negative correlated to fiscal decentralization of expenditure.In the analysis,factors like government revenues, the added value of the second industry, urbanization rate were employed in an attempt to improve the fitting accuracy of the regression.But the results indicate that these factors are inconspicuous in the formulation. In order to improve the environment, firstly we must reform the existing political promotion incentive system which based on the GDP-oriented government achievement assessment we can take "green GDP" as key index inassessing governor’s achievement. Secondly, we should establish a sound financial revenue and expenditure management system, and accelerate the construction of ecological compensation lateral protection as soon as we can. Thirdly, we should expand approaches for citizens to supervise the government’s behavior in environmental protection. and encourage environmental NGO to participate in the team of environmental protection...