Chinese Fiscal Decentralization And The Study On The Relationship Between The Environmental Quality

The global criticism on Canada for its withdrawal from Kyoto Protocol re-stirs the concern on environmental issue around the world. The environmental pollution in China is as surprising as its performance of economic development. And the situation is even getting worse. Quality of environment depends on more than one factor. For figuring out the factors, analysis carries out mainly through how economic development and related institution impact on environment.Fiscal decentralization, which is the significant part of China economic reform, plays a non-replaceable role for the fabulous performance of China in the field of economy. Fiscal decentralization would improve the supply of public goods in the view of western theory. Considering that fiscal decentralization of China is much different than the one described by the western theory, we raise the hypothesis that fiscal decentralization of China contributes its environmental pollution.The empirical result shows that the releases of gas, water and solid waste of industry field would increase about1110,8670and820thousand tons respectively if the fiscal decentralization increases one percent. Meanwhile, we found that the GDP per capita of China in the year of2011is less than the one of the turning point of China Environmental Kuznets Curve, and the investment on curing environment pollution does not work.