Financial Pressure And Environmental Pollution

The division and adjustment of financial power,financial power,administrative power and expenditure responsibility are the core issues in dealing with the relationship between the central and local governments,the focus and difficulty in the reform of financial and tax system,the important institutional support for the government to formulate and implement financial policies,and have a profound impact on the effective operation and operation efficiency of government functions.In 1994,the reform of tax distribution system defined the scope of revenue and expenditure between the central government and the local government on the basis of the division of administrative power and tax categories.Then,according to the system operation and macro-control,the fiscal system of tax distribution system was adjusted and standardized many times from the aspects of adjusting the pattern of revenue division between the central government and the local government,establishing and improving the transfer payment system and regulating the fiscal system below the provincial government.In the process of adjustment,the financial power is gradually centralized to the central government.Although the central government has guaranteed the basic stability of local financial resources through financial transfer and payment,the local financial autonomy has been continuously compressed,and the problem of mismatch between the financial power and the lack of financial resources and the increase of administrative power and expenditure responsibility faced by the grass-roots government has not been effectively solved.In the process of reform,the financial pressure of local government has become an important problem that cannot be avoided in the process of financial and tax system reform.On the other hand,environmental problems are the key problems to be solved in the economic development of contemporary China.According to the relevant research conclusions,the economic cost of environmental pollution in China has accounted for 8%to 15%of the annual GDP.At the same time,in recent years,pollution problems such as "smog lock cityf" have become more and more prominent,and environmental problems have become an unavoidable important problem in the process of China's transformation and reform.Since the 18th National Congress of the Communist Party of China,the Central Committee of the Communist Party of China has attached great importance to the construction of ecological civilization,proposed that we should pay full attention to the value of green water and green mountains,and accelerate the construction of "beautiful China".The ecological environment has become an important issue that can not be ignored in China.Improving the environment,protecting the environment,and realizing the coordinated development of economy and environment are of great importance to our society today.In the situation of local government's increasingly prominent financial pressure and continuous deterioration of local environment,our research on financial pressure and environmental pollution is of great significance.Although the two problems seem to be one of Finance and one of environmental protection,they have little to do with each other.In fact,the impact of government behavior on the environment cannot be ignored.The government is the guardian and gatekeeper of the environment.The behavior choice of the government will directly affect the quality of the environment and the level of pollution.In recent years,in order to pursue high performance and rapid economic development,the local government blindly expands production,ignores environmental protection and promotes economic growth at the expense of the environment.This kind of unscientific.unreasonable and unsustainable economic development mode Receive more and more attention from the society.The research on the relationship between financial pressure and environmental pollution can help us to find out the relationship between them,so as to realize the healthy,green and sustainable development of economy.China's economy has been growing at a high speed this year,but the income of farmers has not increased significantly,or even declined.In order to reduce the burden of farmers,increase their income and improve their lives,the reform of rural tax and fee began in 2000.In 2004,in order to further reduce the burden of farmers and improve their income,the state began to cancel the agricultural tax in an all-round way.This reform has brought great impact to the local government.The agricultural tax revenue,an important part of the local government's financial revenue,has been cancelled,and the grass-roots government is facing great financial pressure.Although the agricultural tax was less than 2%of the total national tax revenue before the abolition of the agricultural tax,due to the low local tax revenue in our country,the abolition of the agricultural tax is still a great financial shock to many regions,especially the county-level areas dominated by agriculture,which brings great financial pressure to the local government.According to Chen Xiaoguang's calculation,from 2000 to 2004,the county-level agricultural tax accounts for an average of 12%of the total tax revenue,and the cancellation of agricultural tax will bring an average of 12%of the tax revenue reduction to the county-level government,.After considering "transfer payment subsidy of agricultural tax reform",the proportion of transfer payment subsidy of agricultural tax and rural tax reform in tax revenue decreased from the average of 21.8%before 2005 to 9.5%.It can be seen that even if the subsidy of central transfer payment is considered,the cancellation of agricultural tax will also cause a certain reduction of tax revenue for local governments,which will bring financial pressure to local governments.In addition,the abolition of agricultural tax reform is carried out in different regions and at different times in batches,forming a good quasi natural experiment,which provides a good policy basis for this study.This paper is based on the quasi natural experiment of canceling agricultural tax reform,based on the data of county level,using canceling agricultural tax reform to identify the change of local government's financial pressure,using the method of double difference(did),constructing the virtual variable of canceling agricultural tax or not,building the double difference model,to identify the relationship between financial pressure and environmental pollution,and to this kind of financial The transmission mechanism between political pressure and environmental pollution is analyzed,so as to better understand the government's behavior under financial pressure and provide reference for policy-making.Through the study of this paper,we find that financial pressure does affect the environment of this region,and this kind of influence is negative,which improves the level of local environmental pollution and intensifies the environmental pollution situation of this region.The mechanism of this effect is that counties with greater financial pressure are more inclined to relax environmental supervision.The path to improve pollution level includes the expansion of existing enterprises and the introduction of new enterprises.Most of the new enterprises are those with higher pollution emissions.