Research On The Spatial Effect Of Fiscal Expenditure Competition On Environmental Pollution

In recent decades,China’s economy has achieved remarkable miracle of economic growth.However,during this development,the contradiction between China’s economic growth and environmental pollution has become increasingly prominent,even becomes a major obstacle in the sustainable development of China’s economy.China’s 2021 Government Work Report also proposed to adhere to green development,reduce energy consumption per unit of GDP,and improve the quality of economic development.Therefore,it is significant to explore the root reason of environmental pollution in China for the sustainable economic development.Chinese fiscal decentralization system is considered to be the root cause of the serious environmental pollution in our country as well as the management difficulties,Chinese fiscal decentralization system is considered to be the root reason of the serious environmental pollution in our country as well as the management difficulties,existing research has focused on fiscal decentralization and government competition on the direct relationship with the environment pollution,but ignored the strategic interaction and imitate behavior between the local government which have an effect on the environment of space.Therefore,based on the perspective of strategic interaction,this paper deeply studies the effect of spatial environment produced by local government fiscal expenditure competition behavior,which is significant for the sustainable development of China’s economy,for the precise pollution control.Based on fiscal decentralization,this paper studies the effect of fiscal expenditure competition between local governments on environment from the perspective of strategic interaction.First,this paper constructs a game competition model of fiscal expenditure competition behavior,and analyzes the internal logic of fiscal expenditure competition influencing the environment.Second,this paper empirically tests the theoretical mechanism using the data of 30 provincial units in China in this part,Moran index and local Moran index scatter plots were used to test the spatial correlation of independent variables and dependent variables.and then Hausman test and LR(likelihood ratio)test were used to determine that the SDM model would not degenerate into a spatial lag model(SAR)and a spatial error model(SEM).Finally,the spatial dynamic Dubin model is used to test the theoretical result.Finally using the space dynamic Dubin model to empirically test the results of theoretical derivation.The study found that the fiscal expenditure competition and economic fiscal expenditure competition of local governments will not only lead to environmental pollution in the local area,but also aggravate the environmental pollution in neighboring areas.Social fiscal expenditure competition has a significant inhibitory effect on the environmental pollution in this area and neighboring areas,and the results are remarkably robust.At the same time,the paper also finds that the impact of fiscal expenditure competition on environmental pollution has significant heterogeneity among regions.Based on the above results,this paper puts forward some policies: First,We should improve the evaluation mechanism for local governments.Second,we need to clarify the environmental rights of local governments.Third,promote coordinated control of environmental pollution among local governments.