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Computational Economics

, Volume 54, Issue 4, pp 1423–1441 | Cite as

Fiscal Decentralization, Economic Growth, and Haze Pollution Decoupling Effects: A Simple Model and Evidence from China

  • Liangliang Liu
  • Donghong Ding
  • Jun HeEmail author
Article

Abstract

This study uses the Hamilton function method to explore the dynamic relationships among fiscal decentralization, economic growth, and environmental pollution decoupling under the framework of endogenous growth theory. Furthermore, the study uses a partial derivative method, the results of which reveal that fiscal decentralization and haze pollution decoupling display an inverse U-shaped relationship and that the economic growth rate has a negative effect on haze pollution decoupling. This study uses the panel data of 30 provinces and municipalities of China to perform an empirical investigation. Our findings demonstrate empirical results, which verify the correctness of the theoretical results. This study also uses the threshold regression method to conduct a grouping experimental research and compares the regression results of each group. Our findings demonstrate the degrees of fiscal decentralization and the years that correspond to their turning points have differences. Finally, policies and recommendations are proposed.

Keywords

Fiscal decentralization Economic growth Haze pollution decoupling Endogenous growth model Panel threshold regression China 

JEL Classification

H77 Q58 C23 

Notes

Acknowledgements

Finally, the authors notably appreciate the National Natural and Science Foundation of China (71573240) and the Doctoral Foundation of the Ministry of Education of China (20133402110040) for supporting this study.

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Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.School of ManagementUniversity of Science and Technology of ChinaHefeiPeople’s Republic of China

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