Research On The Impact Of Environmental Protection Fiscal Expenditure On Environmental Pollution Reduction

In the past,extensive development of economic model has caused a lot of waste of resources,environmental pollution problems continue to emerge,people's demand for high-quality environment is increasingly urgent.Since the 19 th National Congress of the Communist Party of China,China has been in a critical period of adapting to and leading the new normal.The government has continuously increased its attention to pollution reduction and environmental protection.However,the environment has the attribute of public goods,and the problem of environmental pollution reduction can not be solved only by the market mechanism.Therefore,the government is indispensable in dealing with the problem of environmental pollution.Using economic means is the most direct and effective way to solve environmental problems internationally recognized.In 2007,the Ministry of finance of China set up the subject of environmental protection expenditure,which is specially used for environmental pollution reduction and environmental protection.Therefore,it is of great significance for the government to optimize the scale of environmental financial expenditure and give full play to the effective role of financial funds to promote environmental pollution reduction and improve environmental quality.First of all,starting from the environmental problems in China,this paper puts forward the research background and significance,which lays the foundation for the follow-up research.Secondly,based on the theory of environmental financial expenditure and environmental pollution reduction,the direct and indirect impact of environmental financial expenditure on environmental pollution reduction is studied.Then,this paper uses the provincial panel data of 30 provinces from 2007 to 2017,using econometric regression model and threshold regression panel model,to verify the direct,indirect and threshold effects of environmental financial expenditure on environmental pollution reduction.The results show that:(1)The direct effect of environmental financial expenditure on environmental pollution reduction is positive.The financial expenditure of environmental protection has a significant positive direct effect on the emission reduction of industrial wastewater,sulfur dioxide,carbon dioxide and PM2.5.(2)The indirect effect of environmental financial expenditure on environmental pollution reduction varies with different pollutants.Specifically,the indirect effect of financial environmental protection expenditure on industrial wastewater,carbon dioxide and PM2.5 emission reduction is negative,and the indirect effect on sulfur dioxide emission reduction is positive.(3)The direct effect of environmental financial expenditure on environmental pollution reduction is greater than the indirect effect,and the total effect is positive.(4)There is a single threshold effect between environmental financial expenditure and three pollutants.Specifically,when the proportion of environmental protection fiscal expenditure to GDP is between 0.011 and 0.012,the effect of environmental protection fiscal expenditure on industrial wastewater,sulfur dioxide and PM2.5 emission reduction is significant.Finally,according to the conclusion of empirical research,this paper puts forward corresponding policy suggestions,such as increasing the intensity of environmental protection financial expenditure,optimizing the settlement of environmental protection financial expenditure,strengthening the supervision of environmental protection financial expenditure funds and strengthening environmental protection technology research and development.