Study On The Effect Of Local Government Finance Energy Saving And Environmental Protection Expenditure

Protecting the environment is an important subject in the field of applied economics research.With the development of China’s economy,human production and activities have caused serious negative impacts on the environment.Environmental issues have become increasingly prominent.This not only slowed down the pace of economic development in our country,but even more seriously threatened the life of the people.In order to solve environmental problems,local governments have continuously increased their investment in environmental protection.However,their investment results have become a matter of current concern.Therefore,the research on environmental protection has become a research hotspot in the field of economics.China’s attention to environmental issues is relatively late,and governance of the environment is also relatively late.For a long time,environmental issues have gradually accumulated and interacted with each other,making it more difficult to manage the environment.Although there are many ways to solve environmental problems and improve the quality of the environment,environmental protection requires a lot of financial support.Because energy conservation and environmental protection have externalities and characteristics of public goods,they cannot be solved by the market.This requires the government to intervene and play a leading role.At the same time,due to the problem of asymmetric information in the market economy,it also requires the intervention of the government and takes measures to regulate it.Therefore,fiscal expenditure on energy conservation and environmental protection has become one of the core tools for the government to improve the environmental protection effect.The article begins with a related overview of financial energy-saving environmental protection expenditures,defines the basic theories of environmental protection,and analyzes the mechanism of fiscal energy-saving and environmental protection spending to promote environmental protection.At the same time,based on the actual conditions of China’s environment,energy conservation and environmental protection data for 30 provinces(autonomous regions and municipalities)during2007-2015 were selected and tested for spatial autocorrelation,Lagrange multipliertest,Hausman test,etc.Exploring the environmental protection effect of local government expenditure on energy saving and environmental protection.The results show that the environmental protection effect of local government’s fiscal energy-saving and environmental protection expenditures is good,and the degree of pollution can be reduced to improve the effectiveness of environmental protection.Through the study of this paper,we can provide targeted suggestions for further improving the effectiveness of environmental protection.