| China’s economy has been developing rapidly, since reform and opening up. But the serious environmental pollution has been a problem in China. It has become the bottleneck of China encountering in the process of social development, while now, people have realized the seriousness of environmental problems, and promoted harmony between man and nature, required strongly of sustainable development, but China’s environmental problems have not been improved, and compared with other countries, China’s environmental pollution is more serious. If so, Do China’s serious environmental pollution problems have a more profound reason?Based on the system of fiscal decentralization with Chinese characteristics, this paper first expounds the inner mechanism of the fiscal decentralization and the environmental pollution in China, points out that the pollution of the environment as a by-product of production, is the inevitable outcome of economic development. Secondly further demonstrates China’s fiscal decentralization system will further aggravate environmental pollution by evolutionary game theory; Finally through the theory of demand and supply, the pollution of the environment as a by-product of production, in combination with the actual situation of China, introducing the fiscal decentralization variables, setting up equilibrium model about the pollution of the environment; And according to the building model, selecting China’s 1994-2011 panel data of 31 provinces, municipalities and autonomous regions by using spatial econometric method, empirical analysis are done on the concrete investigation of China’s fiscal decentralization and the specific relationship between the pollution of the environment, and also got some other factors for environmental pollution effect size.Through the study of this article found that the role of fiscal decentralization plays a important role in the environmental pollution, and on a national scale, the fiscal decentralization significantly influences in the environmental pollution emissions, and in the central region, the fiscal decentralization degree for the influence of t environmental pollution is the biggest level, in the western region of China Eastern effect is second. Therefore, in the central region and the western region the fiscal decentralization degree set needs to be more cautious, and to a certain extent, also shows that fiscal decentralization degree should be differentiated according to different regions. The right set of fiscal decentralization system, enables capital and labor factor in different departments to get the most reasonable configuration, to ensure the quantity and quality of economic development, making China’s economic development in a suitable speed, there will be more broad prospects for development in China, environmental pollution will gain a lot of improvement, people’s life will be more happy. Finally, according to the results of this article puts forward some suggestions on environmental protection and prospects the paper further research direction. |