The role of fiscal decentralization and technological innovations in curbing sulfur dioxide emissions: formulating SDGs policies for China

Ayoub Zeraibi (), Atif Jahanger, Muhammad Usman (), Daniel Balsalobre-Lorente (), Tomiwa Sunday Adebayo () and Mustafa Kamal ()
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Ayoub Zeraibi: Xian Jiaotong University
Muhammad Usman: Wuhan University
Daniel Balsalobre-Lorente: University of Castilla-La Mancha
Tomiwa Sunday Adebayo: Cyprus International University
Mustafa Kamal: Saudi Electronic University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 8, No 22, 19659-19684

Abstract: Abstract Since the significance of fiscal decentralization and technological innovations cannot be ignored in monitoring the targets of environmental-related sustainable development goals, a full picture of its relationship with environmental quality is vigorous. Thus, this study aims to analyze the influence of financial centralization and technological development on environmental quality in China during the period from 2000 to 2020. The results of this study indicate the positive role of fiscal decentralization in ecological damages by increasing sulfur dioxide emissions. Moreover, technological innovations assist to diminish the pollution levels. The study also confirmed the association between environmental degradation and economic growth in an inverted U-shaped environment Kuznets curve hypothesis. The policy targeting financial decentralization, technological innovation, and economic growth significantly alter sulfur dioxide emissions and vice versa. The progress of this research also has important political effects by restructuring government expenditures and making them more effective by balancing local development and enhancing the quality of the environment. Regarding policy ramifications, we believe that to address declining ecological quality, China should develop measures to diminish the levels of environmental pollution by encouraging an energy-efficient system. Furthermore, it is critical to explain duties at dissimilar government levels to efficiently fulfill the objectives of energy-saving functions and low sulfur emissions.

Keywords: Environmental sustainability; Fiscal decentralization; Technological modernization; Government behavior; Second-generation approach (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03431-6

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