Effects of Vertical Fiscal Imbalance on Green Total Factor Productivity—Evidence from China
-
Published:2023-05-29
Issue:11
Volume:15
Page:8768
-
ISSN:2071-1050
-
Container-title:Sustainability
-
language:en
-
Short-container-title:Sustainability
Affiliation:
1. School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China
Abstract
Green development is the key to safeguarding and improving people’s livelihoods and promoting sustainable development. Based on the provincial data of China for 2004–2019, we developed a general panel model and spatial Durbin model to test the effects of vertical fiscal imbalance (VFI) on green total factor productivity (GTFP). The results show that VFI has a significant inhibitory effect on GTFP; decomposing GTFP into the green technical efficiency change (GEC) and green technological change (GTC) indices reveals that the inhibitory effect of VFI on the GEC and GTC indices is significant and non-significant, respectively; the dampening effect of VFI on GTFP is more significant in regions with high economic growth target, low marketization, or high levels of VFI, and in Midwest, resource-based, or non-municipalities regions. The results of the spatial spillover effect analysis show that VFI has a suppressive effect on GTFP in regions with similar levels of economic development. This study enriches the existing literature by exploring the institutional causes affecting GTFP levels and provides theoretical and practical implications for comprehensively promoting a new round of fiscal system reforms in China and building a modern fiscal system with clear authority and responsibility, thereby promoting sustainable development.
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction
Reference61 articles.
1. Engine or drag: Can high energy consumption and CO2 emission drive the sustainable development of Chinese industry?;Chen;Front. Econ. China,2009
2. China’s Energy Reform in the New Era: Process, Achievements and Prospects;Liu;J. Manag. World,2022
3. Incentives and Balance: Fiscal Motives for China’s Economic Growth;Lv;J. World Econ.,2021
4. Research on Chinese-style Decentralization, Vertical Fiscal Imbalance and Supply of Basic Public Services;Yan;Econ. Perspect.,2022
5. Does a Carbon Trading Contribute to Urban Green Total Factor Productivity?;Liang;Shanghai J. Econ.,2023