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The Spatial Effect of Fiscal Decentralization and Financial Decentralization on Carbon Productivity in China

Learning and Analytics in Intelligent Systems, ISSN: 2662-3455, Vol: 32, Page: 135-143
2023
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Conference Paper Description

In the context of carbon peak and carbon neutrality constraints, China is faced with the challenge of balancing economic development and environmental protection. In China, economic decentralization under centralized political power influences local economic and environmental policy. Based on panel data of 30 provinces in China from 2010 to 2018 and four spatial weight matrices, the spatial Durbin model was used to explain the effects of fiscal decentralization and financial decentralization on carbon productivity. Further, the synergistic effect of “fiscal decentralization-financial decentralization” on carbon productivity was studied in this paper. The results show that (1) China's carbon productivity is on an increasing trend, and there is an obvious spatial spillover phenomenon in the region. (2) Fiscal and financial decentralization contribute to carbon productivity not only within a region, but also within the surrounding areas. (3) The synergistic effect of fiscal decentralization and financial decentralization inhibits the increase of regional carbon productivity and spatial spillover.

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