The impact of fiscal decentralization on CO2 emissions in China

Shulei Cheng, Wei Fan, Jiandong Chen, Fanxin Meng, Gengyuan Liu, Malin Song and Zhifeng Yang

Energy, 2020, vol. 192, issue C

Abstract: This paper evaluates the impact of fiscal decentralization on CO2 emissions in China. We build an equation to combine fiscal decentralization and CO2 emissions and decompose it using the logarithmic mean Divisia index (LMDI) decomposition technique. Then, we examine the nonlinear impact of fiscal decentralization on CO2 emissions using a dynamic panel regression model and Chinese interprovincial data from 1997 to 2015. The empirical results show that the direct impact of fiscal decentralization on CO2 emissions is nonlinear, and the higher the per capita fiscal expenditure, the more fiscal decentralization can reduce CO2 emissions. Moreover, the government’s emissions reduction policies effectively reduce CO2 emissions only when they are conducted at the provincial and city levels, and some differences among regions remain.

Keywords: Fiscal decentralization; Energy consumption; CO2 emissions; LMDI decomposition; Dynamic panel regression (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544219323801
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:192:y:2020:i:c:s0360544219323801

DOI: 10.1016/j.energy.2019.116685

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().