The Study On Environmental Governance Of Local Government Under Fiscal Decentralization And Strategies

The Chinese economy has maintained the high growth speed for many year s since the opening-up policy. Accomanied by the growth, the natural environment has become more and more deteriorating. From the 18 th party congress, the ecological environment has become the core focus in government work construction. From the perspective of public economics, environmental governance is the positive externality which can overflow between different areas.China environmental governance work is mainly undertaken by the local go vernment currently. It’s universally known that the local government environmental governance has not be able to achieve a satisfactory result. T he fiscal decentralization theory originated from the western countries to demonstrate that the provision of pu blic goods by local government. The objective of this research is to use fiscal decentralization theory to study the questions of China’s local governance environment, and try to put forward coping strategies to improve the fiscal decentralization and the present situation of local government environmental governance.The research starts from combing the literature.T hrough analysing the development, connotation and characteristics of the Chinese fiscal decentralization system, the research leads to analyse the the influence mechanism of such a system’s role in local government environment management. China remains highly unified regime in the development process, along with the moving up of property rights and moving down of executive powers, but the work o f environmental governance is different with the interest function of local government in the current fiscal decentralization system. It’s incompatible with their goals to delvelop local economy and get promotion. On the basis of the theoretical model, thi s paper establishes the individual fixed effect model for empirical research.Adopted the 2000-2012 provincial panel data as the object; the empirical research confirmed the system ’s negative effect on the local government environmental governance. The resu lts also show that: T he eastern local government performs worst while the western performs best, and the enthusiasm of environmental governance is gradually reduced. T he international experience of environmental governance of local government is further reveal that the successful work is always can balance the same point between environmental governance and local government officials’ interests.Finally, this research puts forward possible strategies.Starting from straightening out the responsibilities of en vironmental governance, we need to set up higher level organs which are independence from the current government system and move the environmental governance power partly to the central government.Nextly, it’s important to improve the environment related t axes and the financial transfer payment system construction to provide funding for environmental governance. T he last but not the least, providing the channel for public to express their demands of environmental governance is necessary.