Analysis On Fiscal And Financial Support For The Development Of Low-carbon Economy In Shandong Province

In the background of global warming, the development of low-carbon economy has drawn lots of attention in the world. China sounded the horn into the low-carbon economy era in2010, and the "12th Five-Year" Plan also proposed the policy about the low-carbon economy development. It is clear that Shandong faces a lot of problems related to the "high-carbon" economic growth feature. Shandong should develop the low-carbon economy with great efforts to solve the environmental pressure and transform the economic growth mode. It is known that fiscal and financial support is the most vital policy on the development of low-carbon economy. Shandong gradually strengthens the financial and fiscal support to fully arouse the enthusiasm of the cities in Shandong to boost the low-carbon eeonomy. Therefore, it is necessary to study alone in Shandong province about the relationship between fiscal and financial support and low-carbon economy.Based on the research background, this paper took up the normative and empirical research combined with quantitative and qualitative analysis. And this paper regarded Shandong Province as the research object to analyze. First, we collated and analyzed the domestic and foreign literature about fiscal and financial policies supporting the development of low-carbon economy. Second, we tried to establish the mechanism framework of fiscal and financial support for the development of low-carbon economy through introducing the main ways to develop the low-carbon economy. Third, we found that the budget expenditures and green credit are the main tools supporting low carbon economy by analyzing the achievements and problems in boosting low-carbon economy in the light of the data descriptive statistics.To evaluate the impact on low-carbon economy of fiscal and financial support comprehensively, we took the four aspects of economic development, residents’ living standards, environmental pollution treatment and ecological construction into consideration to design Shandong low-carbon economy development index system. This paper then established the low-carbon economy development index with factor analysis to estimate the development of low-carbon economy in17cities in Shandong Province. On this basis, we introduced the panel data of17cities in Shandong from2000to2011to conduct empirical analysis. It is obvious that fiscal spending and credit funds have a positive effect in promoting low-carbon economy in Shandong. Finally, in the light of the concrete summary of fiscal and financial support for the low-carbon economy, we gave some policy recommendations to advance the low-carbon economy in Shandong Province.