Vertical environmental protection pressure, fiscal pressure, and local environmental regulations: evidence from China's industrial sulfur dioxide treatment

Government fiscal decentralization and haze and carbon reduction: Evidence from the fiscal Province-Managing-County reform

Government governance reform is not only a vital motivation for high economic quality but also an important factor in stimulating the government's environmental governance responsibility. The article empirically examines the fiscal Province-Managing-County (PMC) pilot reform on the synergic governance of haze and carbon reduction and its mechanism. The results show that the policy helps to realize the synergic governance of haze and carbon reduction, and the reform of fiscal Province-Managing-County promotes regional haze and carbon reduction mainly through structural effect, innovation effect, and fiscal expenditure responsibility effect. The heterogeneity analysis shows that the policy has an asymmetric effect on haze and carbon reduction under different administrative structures, economic structures and levels of government intervention. Further analysis shows a policy linkage effect between this policy and the Green Fiscal Policy. The policy has the situation of blood-sucking in the provincial capital city and leads to an increase in financial funds. The above results prove that the policy can help to realize haze and carbon reduction and provide practical ideas for the further expansion of the policy. At the same time, it provides the direction for the local government to realize the double-carbon goal.

How informal environmental regulations constrain carbon dioxide emissions under pollution control and carbon reduction: Evidence from China

Exploring whether informal environmental regulations (INER) can achieve carbon reduction in the context of pollution reduction and carbon reduction, as well as how to achieve carbon reduction, can help solve the dual failures of the market and government in environmental protection. Based on the polycentric governance theory and considering the characteristics of social subject environmental participation, the Stackelberg game is used to demonstrate the impact mechanism of INER on CO2. In addition, using the panel data of China's 30 provinces from 2003 to 2018, this paper validates the effectiveness of INER by Pooled Ordinary Least Square (POLS) and threshold panel model. Then, the mediating effect model is used to test the mechanism of INER's effect on carbon reduction. The results show that corruption is not conducive to CO2 reduction. The reduction effect of INER on CO2 exhibits heterogeneity with changes in other non-greenhouse gas pollutants. While INER effectively reduces local corruption, its more substantial indirect impact on CO2 reduction is prominent when levels of other pollutants are lower. Comparative analysis reveals that there are still biased governance behaviors to cope with INER's pressure in some regions nowadays. The findings show that for countries facing the dual task of pollution control and carbon reduction, the key to leveraging the supervisory role of INER should be focused on mitigating information asymmetry caused by the characteristics of CO2. Therefore, in the process of environmental protection, the public environmental participation system should be improved, and the process of disclosing polluters' carbon information should be accelerated.

Does the local government multi-objective competition intensify the transfer of polluting industries in the Yangtze River Economic Belt?

Exploring the effect of local government multi-objective competition on the transfer of polluting industries is of great practical significance for promoting the high-quality development in the Yangtze River Economic Belt. This paper adopted the extended shift-share analysis method to measure the scale of inter-provincial transfer of polluting industries in the Yangtze River Economic Belt from 2008 to 2020. Considering local governments' economic, innovation, talent and environmental protection competition, the paper examined the effects of local government multi-objective competition on the transfer of polluting industries in the region, and tested its spatial spillover effects. The results showed that: 1. Different competitions had different effects on the transfer of polluting industries. Economic competition intensified the transfer of polluting industries, while talent, innovation, and environmental protection competition all restrained it, among which environmental protection competition had the strongest restraining effect. 2. Compared with the transfer of polluting industries, the direction of economic competition and environmental protection competition on the transfer of industries did not change, but the degree of influence was reduced, talent competition instead promoted industrial transfer of the research region to some extent. 3. From the basin level, government competition in the upstream region more obviously intensified the transfer of polluting industries; while from the economic scale level, the restraining effect of government competition in the developed region on the transfer of polluting industries was much stronger. 4. Both innovation and environmental protection competition had positive spatial spillover effects. Therefore, it is necessary to optimize the promotion and assessment mechanism of local officials, adopt differentiated competitive constraint mechanisms in accordance with local conditions, guide local governments to transform their development concepts, promote the sharing and common use of technological innovations, and promote the orderly transfer of industries in the Yangtze River Economic Belt.

How does the digital economy affect the provincial "zero-waste city" construction? Evidence from China

The digital economy is playing a crucial effect in the field of environmental governance. Digital and intelligent management is an essential means to fully realize the "zero-waste city" construction. The present paper investigates the impact of digital economy on China's provincial "zero-waste city" construction. The results indicate that digital economy can contribute to "zero-waste city" construction. The digital economy has a positive nonlinear effect on the construction of "zero-waste city," but the marginal effect is diminishing. The digital economy can facilitate "zero-waste city" construction by improving industrial structure upgrading and green technology innovation. Heterogeneity analysis reveals that digital economy contributes to the construction of "zero-waste city" in the eastern and western regions and high-level environmental regulation regions, while this impact is insignificant in the central region and low-level environmental regulation regions. The digital economy exerts the most significant positive influence on waste resource recycling followed by waste final disposal and then waste reduction at the source. These findings underscore the effect of digital economy in fostering "zero-waste city" construction and promoting sustainable waste management. The present study provides new ideas for the "zero-waste city" construction in emerging developing countries such as China.

Enhancing local governments' environmental attention through open government data: evidence from China

Environmental conservation has ascended to a prominent position on the global agenda, and China, recognizing the urgent need for environmental protection, has implemented nationwide measures. However, varying levels of environmental attentiveness among local governments have resulted in uneven implementation of these national directives across regions. Therefore, it is crucial to investigate the factors that drive local governments' environmental attention. Our study explores the impact of open government data (OGD) on local governments' environmental attention. Utilizing city-level data from 2010 to 2020, we employ a staggered difference-in-differences (DID) model for empirical analysis. The results reveal that OGD significantly and positively influences local governments' environmental attention. This influence is partly attributed to OGD's role in promoting government digitization, mitigating fiscal pressures, and increasing energy demand. Further analysis, including heterogeneity assessments, demonstrates that OGD has a more pronounced positive effect on environmental attention in cities with higher online political participation activity and a larger internet user base. Such empirical insights underscore the imperative for an integrative policy framework that accentuates the refinement of OGD platform in tandem with strategic enhancements in political participatory mechanisms and digital infrastructure investments, thereby fostering robust local environmental stewardship paradigms.

Vertical decentralization, environmental regulation, and enterprise pollution: An evolutionary game analysis

Achieving sustainable economic development and mitigating climate change require effective green transformation management. This study builds an evolutionary game model for industrial enterprises, local governments, and the central government, analyzing the dynamic interactions among vertical decentralization, environmental regulation, and enterprise pollution. Our research reveals that increasing environmental taxes can incentivize industrial enterprises to adopt green transformation practices and promote governments at all administrative levels to supervise and enforce environmental regulations. Moreover, in the context of vertical decentralization, financial incentives provided by the central government to local governments become critical drivers for promoting green transformation. Furthermore, the additional social benefits resulting from local government supervision and governance are key factors in green transformation management, while the negative social effects of industrial enterprises not rectifying their actions are noteworthy. Our study emphasizes the need for an integrated framework incorporating these critical elements for successful green transition management. The findings of this research provide valuable insights for developing nations seeking to enhance their governance capacity throughout the green transformation process.

Can China's carbon intensity constraint policies improve carbon emission performance? Evidence from regional carbon emissions

Carbon Intensity Constraint Policies (CICPs) are vital for addressing climate change challenges and advancing sustainable development. Since 2010, China has rolled out three five-year CICPs. However, there is limited understanding of their impact on carbon emission performance (CEP). Addressing this, this study pioneers the exploration of the CICP's impact on China's CEP. Drawing from government intervention and green paradox theories, this study highlights a concerning scenario: local governments achieve emission targets via excessive intervention. For deeper insights, this study melds the overall technology frontier concept with a non-radial, non-angle directional distance function, introducing a novel efficiency model rooted in the Data Envelopment Analysis (DEA) method. This offers a CEP measure across 30 Chinese provincial regions from 2002 to 2019. Using the quasi-difference-in-differences (quasi-DID) and moderated mediation models, this study ascertains the presence of the green paradox, uncovers its reasons, and suggests mitigation strategies. The results indicate that high government intervention diminishes CEP. This negative effect intensifies under greater regional fiscal pressure. Alarmingly, local authorities' eagerness to meet targets shows a counterproductive, inverted N-shaped trend regarding CICPs' time-based influence on regional CEP. Moreover, the impact varies based on regional economic development levels and stages. This study has ensured the robustness of the findings via parallel trend tests, parallel exclusion policies, a strengthened quasi-DID framework, and diverse control variable configurations. This study underscores the need for more balanced government intervention. It offers valuable policy insights, guiding China's upcoming CICP phase to realize the ambition of peaking carbon by 2030 and achieving carbon neutrality by 2060.

The impacts of casual environmental regulation on carbon intensity in China: Dual mediating pathways of energy low-carbon reconstitution and industrial structure upgrading

In the new era of global net zero, how to reduce carbon intensity became a hot topic, while few attentions had been paid to the impacts of casual environmental regulation, especially in the emerging economy such as China. In this regard, this study uses the panel data of 30 provinces in China from 2003 to 2019 to study the impacts of causal environmental regulation on the carbon intensity, with the adoption of multiple econometric models. The empirical results show that causal environmental regulation has a significant inhibitory effect on carbon intensity, while at current stage, causal environmental regulation cannot inhibit carbon intensity through the mediating of green innovation and renewable energy production. Fortunately, energy low-carbon reconstitution and industrial structure upgrading are proved to effectively act as the intermediary channels. In addition, the spatial spillover effects and the spatial heterogeneity are supported in the empirical analysis. In a summary, this study starts with the case of China to provide a realistic reference case for the international community, enriches the theory, policy and practice related to environmental regulation, and provides a realistic reference example for emerging economics in a developing country.

Does the greening of the tax system promote the green transformation of China's heavily polluting enterprises?

Climate change and pollution are the major environmental problems facing the world today. The emission of industrial pollution is not only related to the development of low carbon and green economy but also affects the ecological environment and climate change of human beings. The greening of the tax system is an important reform to help China's green development. From the perspective of internal green innovation and external legal pressure of heavily polluting enterprises, this paper discusses the impact mechanism of implementing the greening of the tax system on the green transformation of heavily polluting enterprises in China and uses DID model to conduct a quasi-natural experiment on the green transformation of heavily polluting enterprises in China. This paper finds that the implementation of the greening of the tax system has a significant impact on the green transformation of China's heavily polluting enterprises; the greening of the tax system policy realizes the "win-win" situation of green environmental governance and the development of heavily polluting enterprises through green technology innovation and forces heavily polluting enterprises in China to conduct environmental protection through the environmental legitimacy pressure. The effect of the greening of the tax system policy has obvious heterogeneity: The greening of the tax system has a more obvious improvement effect on heavily polluting enterprises with low and high market concentration. Compared with state-owned holding enterprises, non-state-owned holding enterprises are more significantly affected by the greening of the tax system. The positive impact of the greening of the tax system on the green transformation of heavily polluting enterprises is mainly reflected in enterprises with low financing costs, while it is not significant in enterprises with high financing costs. This paper enriches the research on the effect of green tax policy, explores solutions based on quasi-nature, and provides policy references for the green transformation of heavily polluting enterprises.

Local Fiscal Pressure and Public Health: Evidence from China

Under the dual challenges of global downward economic pressure and the COVID-19 pandemic, studying the impact of local government fiscal pressure on public health is a meaningful endeavor. First, this paper analyzes the impact of local government fiscal pressure on public health and clarifies its impact mechanisms. Second, by utilizing panel data of 31 Chinese provinces from 2000 to 2020, two-way fixed-effects and mediating-effects models are developed to identify the effects and impact mechanisms of local government fiscal pressure on public health. The results show that local government fiscal pressure can be detrimental to public health through three main mechanisms: reducing public health fiscal expenditures, hindering industrial structure upgrading, and exacerbating environmental pollution. Heterogeneity analysis finds that the negative effects of local government fiscal pressure on public health mainly exist in Central and Western China. Accordingly, three policy implications are proposed: optimizing the fiscal system, accelerating industrial upgrading, and improving the appraisal system of local officers.

Does vertical supervision promote regional green transformation? Evidence from Central Environmental Protection Inspection

Vertical supervision is an important institutional arrangement designed to overcome the challenges of environmental governance and promotion of green development in the region. Based on the panel data of 278 cities in China from 2010 to 2018, we use Central Environmental Protection Inspection (CEPI) as an exogenous policy and the multi-period Difference-in-Differences method to test the role of vertical supervision in promoting regional green transformation. Our findings indicate that CEPI, a typical vertical supervision policy, effectively promotes green transformation regionally by reducing local pollution emissions and improving total factor productivity. The analysis of mechanism shows that local governments mainly promote regional green transformation by increasing the investment in pollutant governance, research and development in green technologies, and updating fixed assets. Our study provides a valuable reference for the implementation of vertical supervision policies and effective governance of local governments by the central government.

Can vertical environmental regulation become a sharp weapon in China's green development process? The moderating role of pollution dividend

Optimizing the vertical environmental regulation (VER) effect of the central government and reducing the negative execution motivation of local governments have become the priority points to accelerate the green development of China. Based on the spatial Durbin model, this paper not only examines the influence of VER on green development efficiency (GDE), but also discusses the moderating effect of politically and economically motivated pollution dividend (PPD and EPD) on the relationship between them. The research results are as follows: (1) VER has a U-shaped effect on local GDE, the green governance effect of which began to appear when VER was higher than 1.561. VER has an inverted N-shaped effect on adjacent GDE. When the VER intensity lies in (0.138, 3.012), it has a positive spatial spillover effect. (2) PPD weakens the local green governance effect of VER, while EPD positively moderates it. Both of them have no significant moderating effect on it in neighboring areas. (3) Cross-regional cooperative governance moderates the short-term weakness and pollution transfer of VER, and generally facilitates the positive moderating effect of PPD and EPD. In China's two major economic belts, VER, PPD and EPD also have different performances. This study proves the important influence of local inter-governmental competition and promotion tournament on the central environmental regulation for the first time, which is of great significance for optimizing the top-level design of the central government and implementing the governance responsibility of local governments.

The Interaction Mechanism of Fiscal Pressure, Local Government Behavioral Preferences and Environmental Governance Efficiency: Evidence from the Yangtze River Delta Region of China

In environmental governance, local governments are the main actors, and their behavioral preferences between economic growth competition (EGC) and environmental regulation (ER) affect the inputs and outputs of environmental governance. Most studies discuss the relationship between government behaviors and the environment from the fiscal decentralization perspective, with few studies from the fiscal pressure (FP) perspective. Importantly, the bidirectional interaction mechanism is easily ignored. This study measured local government FP, EGC, ER, and environmental governance efficiency (EGE) in China's Yangtze River Delta (YRD) region from 2000 to 2020. Moran's I index was used to identify the change characteristics of local government behavioral preferences. The interaction mechanism was analyzed by a panel vector autoregression (PVAR) model. The results show that (1) from 2000 to 2020, FP was generally strengthened. EGE generally showed fluctuating and rising change characteristics, with more obvious fluctuating and rising characteristics before 2012 and after 2012, respectively. Local governments shifted from a strong alternative preference to a weak synergistic preference. (2) FP had a self-reinforcing effect. EGC and ER had a self-weakening effect. EGE had not only a self-weakening effect but also a weak self-dependence. (3) There is a double negative interaction mechanism between FP and local government behavioral preferences. FP made local governments prefer to reduce EGC and relax ER, but in fact, EGC and ER were conducive to alleviating FP. (4) There is a negative transitive influence mechanism between FP, local government behavioral preferences and EGE. The negative effect of FP on EGE can be transmitted by reducing EGC and ER. This paper provides a scientific basis for improving EGE in the YRD region and understanding the behavioral logic of local governments' environmental governance and a reference for other rapidly industrializing and urbanizing regions.

Environmental Regulation, Financial Pressure and Industrial Ecological Efficiency of Resource-Based Cities in China: Spatiotemporal Characteristics and Impact Mechanism

A resource-based city is a type of city characterized by the exploitation and processing of natural resources as the leading industry in the region. Such cities provide essential resources for China's economic development and support long-term rapid economic growth. However, resource-based cities (RBCs) face challenges, including resource depletion, economic recession, environmental pollution, and ecological damage, to which not enough attention has been paid. In the context of China's increased focus on environmental protection and the economy, improving industrial ecological efficiency of RBCs has become ever more important. In the present study, the Super-SBM model was used to measure the industrial ecological efficiency of 114 RBCs in China from 2003 to 2016. The results show that during the study period, the industrial ecological efficiency of RBCs in China improved significantly, particularly in the central and western regions. The results from a Tobit model show that appropriate environmental regulation and financial pressure have a positive impact on the industrial ecological efficiency of RBCs. However, when faced with the dual pressures of environmental regulation and financial difficulty, improvement in industrial ecological efficiency was inhibited. The impact of environmental regulation and financial pressure on industrial ecological efficiency of cities in different regions and development stages and with different resource types shows heterogeneity. In accordance with the study findings, differentiated measures and suggestions are proposed to improve the industrial ecological efficiency of RBCs.

Environmental Regulation, Environmental Decentralization, and Enterprise Environmental Protection Investment: Evidence From China

The microeconomic behavior of enterprises is influenced by the government system and its policies. In this article, we investigate how environmental regulation and environmental decentralization affect enterprise environmental protection investment using the data of China's listed companies from 2009 to 2020 and examine the effect of environmental decentralization on the relationship between environmental regulation and environmental protection investment. First, we find that there is a “U-shaped” relationship between environmental regulation and enterprise environmental protection investment. Second, the estimation results indicate that environmental decentralization can promote enterprise environmental protection investment. Finally, we further provide evidence to show that environmental decentralization has a negative moderating impact on the relationship between environmental regulation and enterprise environmental protection investment. Accordingly, the conclusion of this study is helpful to optimize the environmental decentralization management system, reasonably guide the local government behavior, alleviate the contradiction between environmental protection and economic development, and promote the green transformation of economic development mode.