Exploring the effectiveness of fiscal decentralization in environmental expenditure based on the CO2 ecological footprint in urban China

• DOI: 10.1057/s41599-023-02227-3
• Publication Date: 2023-11-04T07:01:58Z
• Authors: Guochang Fang; Kun Yang; Gang Chen; Xiaohang Ren; Farhad Taghizadeh...
• Keywords: Kuznets Curve

Abstract Under the fiscal decentralization of government environmental management, this paper investigates relationship between local protection expenditure (LEPE) and CO 2 ecological footprint (CEF). Unlike conventional emissions-based greenhouse gas metrics, research calculates per capita CEF for 253 Chinese cities, considering both carbon emissions absorption. The dynamic spatial Durbin model demonstrates that LEPE not only reduces a city’s own but also exerts long-term influence on neighboring signifying competitive dynamics among governments in LEPE. This decentraliztion budget authority may yield adverse outcomes. Further analysis reveals an inverted U-shaped intensity, partly mirroring Kuznets curve. Different developmental stages should consider economic levels when allocating resources to budgets. low-carbon pilot policy strengthens LEPE, with varying effects across urban agglomerations, remaining consistent post-environmental tax introduction. These findings hold critical reference value policymakers aiming collaboratively adjust market-oriented policies.