The Carbon Emission Reduction Efficiency Under Decentralization Background:the Inherent Mechanism With Empirical Test

With the intensification of the global warming effect, the efficiency of carbon dioxide emission reduction has become the focus of the current study. However, the effective implementation of regional carbon emission reduction policies depends on the coordinated development of the microeconomic subjects. Unlike other Western countries, since the decentralization reforms, China’s local governments has grasped the main economic resources and become the market economy orientation, so that the local government has a better way to realize their own interests. Similarly, in the development and implementation of carbon reduction policies, the local government plays an important role. In the development of local carbon dioxide emissions standards in maximizing, local governments likely to maximize their own interests as a precondition, because of the motive to seek their own interest. Therefore, in this study we keep the local government as third-party economic subjects in addition to businesses and residents to participate in local economic activity. Investigate the microeconomic subject of carbon dioxide emissions internal mechanism based on the economic geography. At the same time, we remind the three theoretical assumptions about the affect mechanism of fiscal decentralization on the efficiency of carbon dioxide emissions. In the next section, this paper uses panel data for1995-200928provinces to empirically test the three hypotheses. First, we use the SFA model parameters frontier approach to calculate the efficiency of the carbon dioxide emissions of28provinces in China. And then analyze the impact of carbon dioxide efficiency factors. Finally concludes with policy recommendations. The results of this study show that:(1) The efficiency of China’s carbon dioxide emissions overall upward trend, but the increase was limited between0.1%-0.2%.The maximum and minimum values of the efficiency of the carbon dioxide emissions vary greatly, but the gap is narrowing trend.(2) From the province’s perspective, the average value of carbon dioxide emissions of the top nine are in the economically developed areas or coastal areas, the ranked after ten are in underdeveloped central and western regions.(3) Decentralized linear no significant effect on the efficiency of carbon dioxide emissions. Possible reason on the one hand have the same regional market size assumptions are too harsh; another reason is that there is a non-linear relationship between the two.(4) An inverted U-shaped relationship between carbon dioxide emissions efficiency and fiscal decentralization. That the appropriate decentralization premise, fiscal decentralization and carbon dioxide emissions efficiency was positively correlated; In the case of excessive decentralization will lead to a negative correlation fiscal decentralization with carbon dioxide emissions. In our sample, more than97%of the observations in the left side of the inverted U-shaped curve, it means that in most parts of the country, improve fiscal decentralization is conducive to the efficiency of the carbon dioxide emissions.(5) Market segmentation would exacerbate the impact of fiscal decentralization on carbon dioxide. The lower degree of fiscal decentralization has a positive effect on the efficiency of carbon dioxide emissions, this positive effect will be weakened and market segmentation; Higher degree of fiscal decentralization, which has a negative effect on carbon dioxide emission efficiency, and market segmentation will exacerbate the negative effects.