Equilibrium Analysis Of Ecological Compensation System Under Fiscal Decentralization

Ecological governance is an important part of China's ecological civilization construction.However,under the fiscal decentralization system,China faces the mismatch of environmental financial power and environmental affairs,resulting in poor local environmental governance,which is highlighted by the contradiction between the expansion of local environmental protection expenditures and the insufficient distribution of macro fiscal revenues to local governments under the intensive requirements of the central "environmental storm".As an ecological and environmental policy that alleviates the mismatch between environmental and financial rights,the ecological compensation system is widely used in local watersheds and regions.Among them,ecological transfer payment and environmental tax are the most typical two kinds of policies,which increase the revenue of local governments by unpaid financial compensation and expand local tax revenues.Considering the complex relationship and the nonlinear conditions between environment and economy,there will be differences in the choice of the two policies and the combination of the implementation of environmental governance,economic output,the total social welfare and the transmission mechanism,and clarifying this difference is particularly important to the policy's actual implementation.Therefore,through the general equilibrium analysis framework to test the institutional performance of ecological compensation systems such as environmental taxes and ecological transfer payments,which is great significance to balance the relationship between economic and environmental,improve the scientific and operational implementation of ecological compensation systems,and promote the reform and theory system construction of ecological compensation systems..This paper constructs an environmental dynamic stochastic general equilibrium model consisting of three sectors:family,manufacturer and government.The government departments are divided into central and local levels.After introducing ecological compensation policies such as ecological transfer payments and environmental taxes,the model is divided into four situations named no policies and vertical ecological transfer payment,environmental tax and policy coordination,and focus on the specific effects of ecological transfer payments,environmental taxes,and the combination of the two policies on local government environmental governance.Based on the results of parameter estimation at the national level,the following meaningful conclusions can be drawn from the results of the model simulation:First,the environmental governance effect of local government environmental protection expenditure is higher than the central government.Second,the heterogeneous ecological transfer payment policy has significant differences in the impact of environmental governance.Third,there is a coupling relationship between environmental tax and ecological transfer payment policies.Fourth,green fiscal policy combination works better by cooperating.Then,based on the provincial panel data,the impact of the ecological compensation system on environmental pollution is verified by establishing a simultaneous equation model of the ecological compensation system.The regression results are consistent with the above conclusions,further confirming the credibility of the theoretical model conclusions.Finally,the equilibrium analysis of the performance of the ecological compensation system under fiscal decentralization may have the following three innovations:The first is to establish a dynamic stochastic general equilibrium model for the study of ecological compensation systems,and to provide a theoretical basis for the model construction of related studies.By distinguishing the direction of fiscal expenditure of the central and local governments in the model,the roles of environmental taxes and ecological transfer payments are described separately path,which provides a standard basic theoretical model for the research on the performance of the ecological compensation system of green finance.The second is to examine the specific impact and comprehensive performance of environmental taxes,ecological transfer payments and their policy combinations from the perspective of environmental protection expenditure shocks.It is found that environmental taxes increase environmental protection expenditures while increasing manufacturers' costs,strengthen environmental governance and weaken overall economic output,ecological transfer payments increasing environmental protection expenditure also increases public investment,increases total economic output and pollution emissions,and weakens environmental governance,and the policy portfolio takes into account the effects of both policies.The overall performance of the policy portfolio is the highest,and the overall performance of the environmental tax is the lowest.The third is to reveal the advantages and disadvantages of environmental taxes,ecological transfer payments and their policy combinations,and the relationship between the two policies.It is found that environmental taxes have a strong environmental improvement role but weak economic promotion effects,and ecological transfer payments have a strong economic promotion role but weak environmental improvement effects,and the two policies complement each other to achieve better overall performance,which provides theoretical basis for strengthening the coupling of ecological compensation policies in reality.