Fiscal Decentralization And Economic Growth Of Local Government Competition Under The River Cross Contamination

Decentralized environmental regulation for the governance of transboundary pollution problem has always been a major concern of the international and domestic theoretical and empirical literature. Especially, due to the characteristics of the decentralized system in china, as well as the resultant competition of economic growth among local governments likely at the expense of the environment quality, it needs more in-depth study on whether the institutes’ issues have impact on transboundary pollution level.With the consideration above, this paper constructs panel data of the water quality(BOD5) on river provincial boundaries from2004to2008, to analyze the impact which results from the degree of fiscal decentralization and competition of economic growth among local governments on the transboundary river pollution. When controlling the nature characteristics of rivers, the empirical analysis shows: with the enhancement of provincial-level fiscal decentralization and level of economic competitions, there has been a significant deterioration on water quality on rivers’ provincial boundaries. However, there has been an obvious difference between the Yangtze and Yellow Rivers, the above two factors have significant impact on Yangtze River valley but not obvious on Yellow River Basin...