| In recent years, with the rapid economic growth, China has made great economic achievements, but the attendant environmental degradation is accelerated. Especially evident is that our regular regional air pollution events appear large area, indicating that the deterioration of the environment has grown from a single administrative region, the deterioration of the surrounding regional development. However, in many large-scale events and meetings held during the environmental quality is very good, very rare haze weather, indicating that short-term joint prevention and control effect is very significant. However, once the short end joint prevention and control, environmental quality has returned to normal immediately. This suggests that long-term mechanism has not yet been set up, but also makes environmental problems have not been fundamentally resolved.Based on the above background, this paper is quite different from our Western federal fiscal decentralization system in the perspective of the analysis of the impact of fiscal decentralization on government action to produce environmental governance, and fiscal decentralization under the region between environmental regulation generated and put forward a theoretical hypothesis:environmental regulatory impact of Intergovernmental each other, local governments in environmental regulation have a "race to the bottom" behavior, resulting in the government uncooperative when environmental management. Empirical evidence shows that:not only the region’s environmental regulation and characteristics of the region, but also to geographical proximity environmental regulation related to the provinces; for a region, when its environmental regulation neighboring regions to invest more in the area ofenvironmental regulation You will relax. That there is an actual environmental regulation of the "free rider" phenomenon, to determine the presence of environmental regulation "race to the bottom" between our local governments, environmental governance cooperation between government becomes difficult. This is because China’s economic development over the past few decades the development of strategies to enable local governments to generate capital competition, capital competition driven by strategic interaction of environmental regulation, affecting the overall governance of the regional environment.Lack of cooperation between the government makes the lack of effective regional environmental governance, the fundamental problem is interest. In this paper, Lindahl equilibrium thinking, theoretically proved that cooperation between the Government can and should be holistic regional environmental governance in order to achieve regional welfare maximization. Cooperation between Governments in holistic governance, to accelerate the construction of regional integration, the establishment of a central government can delegate agencies, in order to the region as a whole environment, managers, and set one kind of fund in this organization system to allow profit-driven initiative of the Government to participate in the environmental governance in the past. |