Journal of Guizhou University of Finance and Economics››2020››Issue (04): 101-110.

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Financial Pressure, Local Government Behavior and Environmental Pollution

GUO Xiao-hui

  1. School of Finance and taxation, Central University of Finance and Economics, Beijing 100081, China
  • Received:2019-11-27Online:2020-07-15Published:2020-07-16

Abstract:Local government is the key subject of ecological environment governance,Fiscal pressure has an important impact on environmental pollution with local government behavior as a conductive variable.This paper empirically examines the response of local government actions to the impact of financial pressure. The result shows that:Local government incentives for production have the effect of increasing pollution, and the greater the financial pressure, the more obvious the effect.Environmental protection expenditure is an effective tool to reduce environmental pollution. and fiscal pressure has an enhanced effect on pollution control.The collection of sewage discharge fees has no effect on reducing environmental pollution, on the contrary, it aggravates environmental pollution,fiscal pressures have intensified this pollution effect.In order to reduce the pollution effect of local government behavior, we can start from three aspects: eliminating the incentive of institutional financial pressure, strengthening the supervision and restraint of local government behavior, and optimizing the governance tools to improve environmental governance performance.

Key words:financial pressures,local government actions,environmental pollution,intensifying effect,reduction path,threshold model

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