The Local Government’s Behavior Research Of Environmental Governance Under The Fiscal Decentralization

In recent years, environmental economists gradually reach a new consensus about the EKC that the relationship between environmental pollution level and extent of fiscal decentralization undergo a positive correlation to the negative correlation transformation process, and this critical point is the fiscal capacity of the local government level. Before the arrival of the inflection point value, the environment is a victim of the global wave of decentralization reform. For our country, empirical analysis show that:not only in nationwide, but also in the provinces of panel data analysis, China’s per capita fiscal capacity is far from the inverted U curve inflection point value, therefore improving the quality of the environment not hopes to increase the wealth of the people, otherwise they will fall into the the vicious cycle of "treatment after pollution, economic development first and then control the environment,". In fact, as the highest representative of the public interest, the central government has recognized the "pollution" of this relationship to human well-being of important issues, but in the process and implementation of policies issued, driven by the pursuit of political incentives and fiscal decentralization, the local governments’s goal "economy-society-environment" multitasking championship become "the only economy single-task championships". In recent years, people began to focus on the negative impact of fiscal decentralization bringing to the human environment, as an "institutional arrangements", the local government’s behavior has led to uncertainty utilitarian relationship between China’s economic growth and environmental protection.This article is based on this to discuss fiscal decentralization and environmental pollution, "middle factor"-local government environmental governance practices, using normative analysis and empirical analysis, empirical and historical analysis methods. In addition to the first chapter, the full article is divided into five sections, as described below:The first part, the theoretical study. As to the current situation of the government failing to govern the environment, an academic sophisticated has been given based on the perspective of design theory, in order to find hidden reasons behind the current plight of the deep system.The second part, from a historical point of view, reviewing all financial institutions under different behavior extended from government environmental governance and environmental policy instruments in each period, find that fiscal decentralization of government action have an effect on environment, basesd on the "structure of financial expenditure," "central transfer payments", "industry structure", then interpret the local government environmental governance mechanism under the effct of fiscal decentralization.The third part, the empirical study choose representatives of the five provinces, which analyz the relationship between fiscal decentralization, fiscal revenues in five provinces and environmental pollution control investment, data of 2004-2013 come from "China Statistical Yearbook" and the National Bureau of Statistics website, measurement analysis software using Stata.12, statistics show that:the degree of expenditure decentralization of fiscal decentralization and environmental management has a significant inverse correlation; the provincial level of fiscal decentralization revenue has no significant level; the impact of GDP, foreign direct investment, the level of industrialization and other control variables of environmental pollution also make differences.The fourth part shows the United States, Japan and other countries’ experiences in terms of fiscal decentralization and environmental pollution, aiming to describe and compare the experience of China and some developed countries in terms of fiscal reform, especially with regard to environmental governance spending, the central transfer payments and industrial structure, in order to explore the impact of international experience in environmental governance, and then provide experience for the system design of fiscal decentralization in the future.The fifth part, as to the main dilemma, the text show how to get out from the root causes of environmental pollution-make arrangements for the institutional level, and the establishment of a sound fiscal revenue and expenditure management system, adjusting the local performance assessment methods, changing the behavior of local governments and strengthen public participation on environmental monitoring and etc.The innovation of this article:1. as a matter of policy and institutional arrangements, fiscal decentralization has positive externalities and negative externalities, in our country, exploring the relationship between fiscal decentralization and positive externalities (such as health, education, infrastructure, etc.) has established a comprehensive system, and some improvements to solve the problems played a substantial role. But as to another important negative impact fiscal decentralization brings - environmental pollution, although there are many scholars has discussed and give some proposals, such as innovation cadre evaluation system, innovative public management system, but these measures do not capture the essence of the problem, don’t solve the problem fundamentally. The innovation of this paper is to examine the causes of environmental pollution behind the system, from the fiscal decentralization system, analyzes the impact of this economic system of local government environmental governance practices, and gives a number of measures and proposals from the system, the theoretical perspectiven is unique.2. as to research methods, the paper adopted a descriptive and exploratory research combining method and using triangular cross-examination certificate, in order to enhance the validity and reliability.