A Research On Environmental Effects Of Fiscal Expenditure Competition Among Local Governments

Under the fiscal decentralization system, the revenues and expenditures rightsof local governments are increasingly strengthened, so a fiscal expenditurecompetition appears across the country. In order to win in the political tournament,local governments make fiscal expenditure strategies to compete for the limitedsocial resources, and this competition will bring economic effects and social effects,the environmental effect is one of the most important part of social effects.This paper discusses the environmental effect of Administrate, Economic andScience-education-culture-health expenditure competition. First of all, I establish a‘double dimension’ yardstick competition theory, and analyze all kinds of spendingcompetitions’ impacts on the environment. Later I try to build a model ofenvironmental effect by panel data, and finally draw the conclusion: Administrateand Economic competition have negative effects on environmental quality, andScience-education-culture-health competition is beneficial to improve theenvironment. Additional fiscal expenditure competition has the characteristic of"double dimension" and affects the change of environmental quality: from the timedimension, expenditure competition will experience from ‘compete for growth’ to‘compete for harmonious’, resulting in environmental improvements; From thespatial dimension, in developed region the competition will gradually focus onScience-education-culture-health, and pollution transfer can promote theenvironment, but developing area is still stay in Economic expenditure competition,undertaking transfer of pollution leads to further deterioration of the pollution.Therefore, increasing political orientation and incentive in environment,incorporating environmental protection into the evaluation criteria system,strengthening the separation of system rationality, can be conducive to solve theproblems of vicious competition.