Chinese Financial Decentralization And Environmental Pollution

At present,environmental issues have become a topic of increasing concern.Environmental protection is not only conducive to the improvement of people’s living standards,but also plays a role in promoting social and economic development.Improving the ecological environment and promoting green and low-carbon development has become a hot topic discussed at the 2022 National Two Sessions.At present,China’s economy has made certain achievements,but the contradiction between economic development and environmental protection has become particularly prominent.Environmental pollution not only seriously affects people’s quality of life,but also hinders the further development of the economy.At the 19 th National Congress of the Communist Party of China,it was pointed out that China’s economy has shifted from a stage of rapid growth to a stage of high-quality development.High quality development requires us to handle the relationship between economic development and environmental protection more intelligently,and implement the new development concept of innovation,coordination,green,openness and sharing.At the same time,we can see that the impact factors of environmental pollution are diverse.At present,most studies focus on economic development level,industrial structure and other aspects.As far as China is concerned,since the development of our country in the past decades has always been dominated by the government,the government’s behavior has a profound impact on all aspects of our country,including environmental pollution.The behavior of our government is largely restricted by the fiscal decentralization system,so it is necessary to discuss the impact of fiscal decentralization on our environmental pollution.This paper selects the data of 276 prefecture level cities in China from 2006 to2019 to analyze the specific impact of fiscal decentralization on environmental pollution,that is,whether fiscal decentralization aggravates or alleviates environmental pollution in China.At the same time,in order to further discuss this issue,this paper discusses the mechanism of fiscal decentralization on environmental pollution from the perspectives of technological innovation and government competition.This paper first sorts out and summarizes the relevant literature on fiscal decentralization and environmental pollution,and reviews the literature.On this basis,it defines the relevant concepts related to the theme of this paper,such as fiscal decentralization and environmental pollution,and introduces the fiscal decentralization theory,externality theory,public goods theory and sustainable development theory.This paper then discusses the impact mechanism of fiscal decentralization on environmental pollution from the theoretical level and puts forward the corresponding hypothesis,and analyzes the current situation of fiscal decentralization and environmental pollution in China.Then,this paper uses the two-way fixed effect model to analyze the impact of fiscal decentralization on environmental pollution in China,and analyzes the heterogeneity of cities with different characteristics.Then,this paper discusses the regulatory role of technological innovation and government competition through the introduction of interactive items.Finally,this paper puts forward corresponding policy recommendations according to the research conclusions.The main conclusions of this paper are: First,the improvement of China’s fiscal decentralization will aggravate China’s environmental pollution;Second,technological innovation will inhibit the positive impact of fiscal decentralization on environmental pollution;Third,government competition will inhibit the positive impact of fiscal decentralization on environmental pollution.Based on the research conclusion,this paper points out that China should further promote financial system reform,promote technological innovation and increase the proportion of environmental governance in government assessment.