The Environmental Effects Research Of Local Government Fiscal Expenditure Under The Decentralization System.

Based Environmental pollution,ecological deterioration and climate change have brought great crisis to living and development of human beings.People have realized that the development model as simply taking economic growth as a goal but neglecting environmental protection is not sustainable.Changing the mode of production,promoting environmental friendliness industries,saving resources,and developing green economy have become the consensus of mankind.However,any economic factor can't function independently apart from social systems.Fiscal decentralization,as an important part of China's economic system reform,is one of the important systems to ensure sustained and rapid development of our economy.Therefore,it's of great theoretical and practical significance to study the influence of local government's fiscal expenditure on environmental pollution under the background of Chinese fiscal decentralization.This paper first expounds the problem of environmental pollution from the perspective of fiscal decentralization,and analyzes the mechanism of the effect of local government expenditure on environmental pollution under the system of fiscal decentralization.In order to further analyze the environmental effects of local fiscal expenditure under the decentralization system,this paper takes "three industrial wastes " emissions as the environmental pollution index,and based on the provincial panel data of 2000-2015 years in China,and then the GMM dynamic panel model is established to analyze the effect of the scale and structure of local financial expenditure under the system of decentralization on emissions of "three industrial wastes " emissions.Then,according to the degree of pollution in each area,it is divided into high,middle and low polluted areas,and regional differences are studied.Finally,on the basis of theoretical and empirical analysis,from the point of view of the local fiscal expenditure under the decentralization system,we put forward some suggestions to reduce environmental pollution and realize the healthy development of the environment.The following conclusions can be drawn from this study:(1)Chinese fiscal decentralization will increase emissions of "three industrial wastes ".This requires our country to adjust the financial assessment system of local government,bring"green GDP" into the assessment indexes and change government behavior.(2)considering the scale of fiscal expenditure,increasing the scale of local financial expenditure is not conducive to reducing the emissions of "three industrial wastes";however,China is in an important period of economic development and wouldn't reduce emissions of "three industrial wastes " by reducing the scale of financial expenditure which would reduce its wealth.From the verified practices,a conclusion was drawn that the economic service expenditure can promote the "three industrial wastes " emissions,and the social service expenditure can effectively reduce them,(3)from results of analyzing regional differences,we can see that the financial decentralization has a great impact on highly polluted areas,a middle impact on moderately polluted areas,a small impact on lowly polluted areas.There is a positive correlation between the fiscal expenditure and the degree of environmental pollution in all regions,where the degree of pollution is higher,the effect of fiscal expenditure on the "three industrial wastes " emissions is more obvious.The innovations of this paper are as follows:firstly,based on GMM,this paper builds a econometric model of the influence of local fiscal expenditure on "three industrial wastes”emissions under Chinese decentralization condition,and investigates the effect of the "three industrial wastes " emissions from the scale and structure of the financial expenditure.Second,the comprehensive evaluation method of CRITIC is adopted to establish the comprehensive index of environmental pollution,by dividing the provinces and cities into highly,moderately and lowly polluted areas,the effects of financial expenditure on environmental pollution are discussed on several cases as above,therefore the research is more specific and policy suggestions which are more specific are put forward.