Analysis of the Spatial Effect of Fiscal Decentralization and Environmental Decentralization on Carbon Emissions under the Pressure of Officials’ Promotion

Abstract

Using panel data of 30 provinces and regions in Mainland China (excluding Tibet) from 2006 to 2016, the Spatial Durbin Model was employed for the empirical research, and the spatial impact of fiscal decentralization and environmental decentralization on regional carbon emissions were analyzed from the perspective of promotion pressure of officials. The empirical study concludes: ① Fiscal decentralization, both within the region and in its neighborhood, will contribute to carbon emissions in the region; ② Environmental decentralization will help reduce carbon emissions, while environmental decentralization in neighboring regions will increase carbon emissions in the region; ③ The promotion pressure of officials plays a positive role in moderating the impact of fiscal decentralization on carbon emissions, and at the same time weakens the suppression of carbon emissions by environmental decentralization; ④ From a regional point of view, there is a positive relationship between fiscal decentralization and carbon emissions in various regions; but environmental decentralization has obvious spatial heterogeneity. The research suggests that reducing the degree of local fiscal decentralization, investment in major infrastructure projects involving high carbon emissions should be relatively centralized; appropriately increase the environmental management authority of local environmental protection agencies, fully use the advantages of local environmental protection departments to protect the environment according to local conditions; gradually improve the assessment system for local officials, moderately reduce the proportion of fiscal revenue and GDP assessment in areas with fragile ecological environment, and increase incentives for ecological performance assessment, put the development of low-carbon economy into practice.