Research On The Influence Of Green Finance On Local Environmental Pollution Under The Chinese Fiscal Decentralization

In recent years,National haze problem often appear in the major social networking sites and current news,causing netizens to complain and ridicule,which once again sounded the alarm for us.Actually all the time,environmental problems have been a major bottleneck in China's economic development,the most serious of which is environmental pollution.Under the background of Chinese fiscal decentralization,simultaneously under the double stimulation of political incentives and economic incentives,the government develop the local economy vigorously,ignoring the environmental protection and governance,ignoring the taxation of the nature of environmental protection,weakening the local environmental pollution control effect,which exacerbated the local environmental pollution.For this reason,the government put forward the concept of "green finance",hoping to solve the problem of the Market configuration failure of local environmental resources from the perspective of government.It now appears that the effect of these measures on China's environmental pollution control is not very obvious.The overall environmental management effect of China's fiscal and taxation policy is not satisfactory.Based on the above background,in order to explore the impact mechanism of environmental pollution in China from the perspective of financial factors,this paper studies the impact of green finance on local environmental pollution in the context of Chinese fiscal decentralization from the perspective of double dimension of revenue and expenditure.In theory,when the government adopts the method of collecting environmental taxes and fees to control pollution,the sewage enterprises will choose the pollution control according to the comparison between the marginal cost of taxation and the pollution control costs.When the government encourages enterprises to control pollution through financial subsidies,the sewage enterprises will choose the pollution control according to the comparison between the subsidize marginal revenue and spill margins.Only when the regulatory measures of the environmental regulators implement to a certain extent,which is the green fiscal revenue and expenditure reach a certain scale,it will achieve the "negative external cost of internalization" and "positive external income inherent",so that the effect of environmental regulation can be improved.Therefore,the green finance has a non-linear impact on local environmental pollution.In the empirical research,based on the provincial panel data of 31 provinces(cities)from 2003 to 2014,this paper analyzes the effect of green financial revenue and expenditure on the local environmental pollution by constructing the panel threshold effect model,respectively,with green financial variables and fiscal decentralization variables as threshold variables.The study found that the green finance has a significant threshold effect on the local environmental pollution,and it inhibits the local environmental pollution within a certain range.At the same time,the decentralization of fiscal revenue and expenditure exacerbates the local environmental pollution,the higher the degree of decentralization of fiscal revenue and expenditure,the more serious local environmental pollution.Population density,R&D intensity,economic development level,the level of education and the level of urbanization and other factors also have an impact on local environmental pollution.Based on the above conclusions,this paper puts forward some suggestions on how to optimize the fiscal decentralization system and the green fiscal revenue and expenditure activities and improve the local environmental pollution control,mainly including:To increase local green energy saving and environmental protection expenditure and improve the relevant supervision and performance evaluation system simultaneously;To levy new green taxes gradually and improve the existing tax system for improving the tax "green" level;To change only the "GDP" officials performance appraisal mechanism under the institutional framework of the current existing fiscal decentralization system;To increase investment in education,improve the intensity of research and development and improve the level of China's economic development.