A Study On The Impact Of Fiscal Decentralization On Local Environmental Pollution

With the rapid development of industrialization and urbanization,the problem of environmental pollution becomes more and more serious in China,and it aroused great concern from the central government and the public.In recent years,the central government has issued various environmental governance policies,giving local governments greater financial autonomy and environmental responsibility to improve environmental quality.Local government as the main body of environmental governance,the main environmental governance responsibility,but in the context of fiscal decentralization system,the local government in order to ensure the sufficient financial capital income,the environment will be as instruments of the scramble for liquidity resources,leading to neglect of environmental governance,environmental public service supply.Due to China's vast territory,the economic development degree and financial status of various regions are greatly different,so there are differences in environmental pollution status and environmental governance behavior between regions.Therefore,what is the impact of fiscal decentralization on local government's environmental pollution? What is the mechanism of its influence? What are the effects on different types of pollutants? The reasons for the insufficient environmental governance of local governments can be further understood,so as to provide references for strengthening the environmental governance incentives of local governments and providing optimization paths for overall environmental improvement.Based on this,firstly,this paper defines the concepts related to the fiscal decentralization of local governments and the heterogeneity of pollutants,analyzes their theoretical basis,and analyzes the mechanism of the impact of fiscal power on local environmental pollution.Then,STIRPAT model is adopted as the classification standard of pollutants.Based on the panel data of each province in China from 2007 to 2017,empirical tests are conducted on the impact of fiscal decentralization on local environmental pollution at the national and regional levels.The empirical results show that the effect of fiscal decentralization on environmental pollution is heterogeneous.There is a positive correlation between fiscal decentralization and non-spillover pollutant discharge.The non-linear development relationship with the discharge of two-way spillover pollutants.Regional regression shows that in high-income regions,regardless of the degree of industrialization,fiscal decentralization will reduce the pollution of water and air through improving industrial structure,reducing population concentration and improving the quality of foreign capital utilization.Fiscal decentralization reduces the discharge of waterpollution by improving the utilization quality of foreign capital in low income and high industrialized regions and low income and low industrialized regions.The linkage effect of fiscal decentralization and industrial structure reduces the air pollution emission of low-income and highly industrialized regions,but this effect is not significant for low-income and low-industrialized regions.Fiscal decentralization aggravated the deterioration of environmental quality in all four regions by inhibiting technological progress in production.Finally,based on the above conclusions,this paper puts forward policy suggestions onthe responsibilities of local environmental governance are reasonably divided,begin inter-governmental financial competition mechanism is constructed,and differentiated countermeasures are formulated against the heterogeneity of pollution.