Fiscal Decentralization, Economic Growth, and Haze Pollution Decoupling Effects: A Simple Model and Evidence from China

Liangliang Liu (), Donghong Ding () and Jun He ()
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Liangliang Liu: University of Science and Technology of China
Donghong Ding: University of Science and Technology of China
Jun He: University of Science and Technology of China

Computational Economics, 2019, vol. 54, issue 4, No 9, 1423-1441

Abstract: Abstract This study uses the Hamilton function method to explore the dynamic relationships among fiscal decentralization, economic growth, and environmental pollution decoupling under the framework of endogenous growth theory. Furthermore, the study uses a partial derivative method, the results of which reveal that fiscal decentralization and haze pollution decoupling display an inverse U-shaped relationship and that the economic growth rate has a negative effect on haze pollution decoupling. This study uses the panel data of 30 provinces and municipalities of China to perform an empirical investigation. Our findings demonstrate empirical results, which verify the correctness of the theoretical results. This study also uses the threshold regression method to conduct a grouping experimental research and compares the regression results of each group. Our findings demonstrate the degrees of fiscal decentralization and the years that correspond to their turning points have differences. Finally, policies and recommendations are proposed.

Keywords: Fiscal decentralization; Economic growth; Haze pollution decoupling; Endogenous growth model; Panel threshold regression; China (search for similar items in EconPapers)
JEL-codes: C23 H77 Q58 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (27)

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DOI: 10.1007/s10614-017-9700-x

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