Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies

The “environment” has become one of the important and debatable topics of the world and policymakers identifying the new predictors of CO2 emissions. Therefore, some economies have been promoting fiscal decentralization to encourage environmental quality by granting more financial autonomy to provin...

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Autores:: The Phan, Cong
Jain, Vipin
Priyo Purnomo, Eko
Monirul Islam, Md.
Mughal, Nafeesa
Grimaldo Guerrero, John William
Ullah, Sana

Tipo de recurso:: Article of journal

Fecha de publicación:: 2021

Institución:: Corporación Universidad de la Costa

Repositorio:: REDICUC - Repositorio CUC

Idioma:: eng

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network_acronym_str	RCUC2
network_name_str	REDICUC - Repositorio CUC
repository_id_str
dc.title.spa.fl_str_mv	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
title	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
spellingShingle	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies Fiscal decentralization CO2 emission Pollution ARDL NARDL Asia
title_short	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
title_full	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
title_fullStr	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
title_full_unstemmed	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
title_sort	Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies
dc.creator.fl_str_mv	The Phan, Cong Jain, Vipin Priyo Purnomo, Eko Monirul Islam, Md. Mughal, Nafeesa Grimaldo Guerrero, John William Ullah, Sana
dc.contributor.author.spa.fl_str_mv	The Phan, Cong Jain, Vipin Priyo Purnomo, Eko Monirul Islam, Md. Mughal, Nafeesa Grimaldo Guerrero, John William Ullah, Sana
dc.subject.spa.fl_str_mv	Fiscal decentralization CO2 emission Pollution ARDL NARDL Asia
topic	Fiscal decentralization CO2 emission Pollution ARDL NARDL Asia
description	The “environment” has become one of the important and debatable topics of the world and policymakers identifying the new predictors of CO2 emissions. Therefore, some economies have been promoting fiscal decentralization to encourage environmental quality by granting more financial autonomy to provincial and sub-national governments. Therefore, this study evaluates the dynamic effect of fiscal decentralization on CO2 in selected nine Asian economies using a fresh dynamic panel ARDL model from 1984 to 2017. The empirical findings show that fiscal decentralization has asymmetric effects on CO2 emissions because a positive change in revenue and expenditure decentralization reduced CO2 emissions in Asia. Moreover, a negative change in expenditure decentralization has also enhanced CO2 emissions in the long run. Thus, clean environmental policies and recommendations can be revised and proposed based on nonlinear findings in the modern era.
publishDate	2021
dc.date.accessioned.none.fl_str_mv	2021-07-27T13:21:28Z
dc.date.available.none.fl_str_mv	2021-07-27T13:21:28Z
dc.date.issued.none.fl_str_mv	2021
dc.type.spa.fl_str_mv	Artículo de revista
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dc.identifier.uri.spa.fl_str_mv	https://hdl.handle.net/11323/8487
dc.identifier.doi.spa.fl_str_mv	https://doi.org/10.1007/s11356-021-15256-9
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identifier_str_mv	Corporación Universidad de la Costa REDICUC - Repositorio CUC
dc.language.iso.none.fl_str_mv	eng
language	eng
dc.relation.references.spa.fl_str_mv	Ahmed Z, Wang Z, Ali S (2019a) Investigating the non-linear relationship between urbanization and CO 2 emissions: An empirical analysis. Air Qual Atmos Health 12(8):945–953 Ahmed Z, Wang Z, Mahmood F, Hafeez M, Ali, N (2019b) Does globalization increase the ecological footprint? Empirical evidence from Malaysia. Environ Sci Pollut Res 26(18):18565–18582 Anser MK, Khan MA, Awan U, Batool R, Zaman K, Imran M, Sasmoko, Indrianti Y, Khan A, Bakar ZA (2020) The role of technological innovation in a dynamic model of the environmental supply chain curve: evidence from a panel of 102 countries. Processes 8(9):1033 Awan U (2020) Steering for sustainable development goals: a typology of sustainable innovation. In: Industry, Innovation and Infrastructure. Encyclopedia of the UN Sustainable Development Goals Awan U, Kraslawski A, Huiskonen J (2019) Progress from blue to the green world: multilevel governance for pollution prevention planning and sustainability. In: Handbook of environmental materials management Awan U, Arnold MG, Gölgeci I (2021a) Enhancing green product and process innovation: towards an integrative framework of knowledge acquisition and environmental investment. Bus Strateg Environ 30(2):1283–1295 Awan U, Bhutta MKS, Huiskonen J, Kraslawski A (2021b) Deployment of sustainable development framework in export manufacturing firms for the common good. In: Integrating Social Responsibility and Sustainable Development: Addressing Challenges and Creating Opportunities, p 133 Bardhan P (1997) Corruption and development: a review of issues. J Econ Lit 35(3):1320–1346 Batterbury SP, Fernando JL (2006) Rescaling governance and the impacts of political and environmental decentralization: an introduction. World Dev 34(11):1851–1863 Blomquist W, Dinar A, Kemper KE (2010) A framework for institutional analysis of decentralization reforms in natural resource management. Soc Nat Resour 23(7):620–635 Chang CP, Hao Y (2017) Environmental performance, corruption and economic growth: global evidence using a new data set. Appl Econ 49(5):498–514 Chen X, Chang CP (2020) Fiscal decentralization, environmental regulation, and pollution: a spatial investigation. Environ Sci Pollut Res:1–23 Cheng Y, Awan U, Ahmad S, Tan Z (2021) How do technological innovation and fiscal decentralization affect the environment? A story of the fourth industrial revolution and sustainable growth. Technol Forecast Soc Chang 162:120398 Dean JM, Lovely ME, Wang H (2005) Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China. The World Bank Du J, Sun Y (2021) The nonlinear impact of fiscal decentralization on carbon emissions: from the perspective of biased technological progress. Environ Sci Pollut Res:1–10 Fell H, Kaffine DT (2014) Can decentralized planning really achieve first-best in the presence of environmental spillovers? J Environ Econ Manag 68(1):46–53 Goel RK, Mazhar U, Nelson MA, Ram R (2017) Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries. Econ Model 62:171–183 Gray WB, Shadbegian RJ (2004) “Optimal” pollution abatement—whose benefits matter, and how much? J Environ Econ Manag 47(3):510–534. https://doi.org/10.1016/j.jeem.2003.01.001 Hafeez M, Chunhui Y, Strohmaier D, Ahmed M, Jie L (2018) Does finance affect environmental degradation: evidence from One Belt and One Road Initiative region? Environ Sci Pollut Res 25(10):9579–9592 Hafeez M, Yuan C, Yuan Q, Zhuo Z, Stromaier D (2019) A global prospective of environmental degradations: economy and finance. Environ Sci Pollut Res 26(25):25898–25915 Halkos GE, Paizanos EΑ (2013) The effect of government expenditure on the environment: an empirical investigation. Ecol Econ 91:48–56 He Q (2015) Fiscal decentralization and environmental pollution: evidence from Chinese panel data. China Econ Rev 36:86–100 Helland E, Whitford AB (2003) Pollution incidence and political jurisdiction: evidence from the TRI. J Environ Econ Manag 46(3):403–424 Holmstrom B, Milgrom P (1991) Multitask principal-agent analyses: incentive contracts, asset ownership, and job design. J Law Econ Org 7:24–52 Ji X, Umar M, Ali S, Ali W, Tang K, Khan Z (2020) Does fiscal decentralization and eco-innovation promote sustainable environment? A case study of selected fiscally decentralized countries. Sustain Dev Khan Z, Ali S, Dong K, Li RYM (2021) How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital. Energy Econ 94:105060 Köllner T, Schelske O, Seidl I (2002) Integrating biodiversity into intergovernmental fiscal transfers based on cantonal benchmarking: a Swiss case study. Basic Appl Ecol 3(4):381–391 Konisky DM (2007) Regulatory Competition and Environmental Enforcement: Is There a Race to the Bottom? Am J Polit Sci 51(4):853–872. https://doi.org/10.1111/j.1540-5907.2007.00285.x Levinson A (2003) Environmental regulatory competition: a status report and some new evidence. Natl Tax J 56(1 I):91–106. https://doi.org/10.17310/ntj.2003.1.06 Li B, Hao Y, Chang CP (2018) Does an anticorruption campaign deteriorate environmental quality? Evidence from China. Energy Environ 29(1):67–94 Li X, Yu Z, Salman A, Ali Q, Hafeez M, Aslam MS (2021a) The role of financial development indicators in sustainable development environmental degradation nexus. Environ Sci Pollut Res:1-12 Li X, Younas MZ, Andlib Z, Ullah S, Sohail S, Hafeez M (2020b) Examining the asymmetric effects of Pakistan’s fiscal decentralization on economic growth and environmental quality. Environ Sci Pollut Res 28(5):5666–5681 List JA, Gerking S (2000) Regulatory federalism and environmental protection in the United States. J Reg Sci 40(3):453–471 Liu Y, Zhu J, Li EY, Meng Z, Song Y (2020) Environmental regulation, green technological innovation, and eco-efficiency: The case of Yangtze river economic belt in China. Technol Forecast Soc Chang 155:119993 Mahmood MT, Shahab S, Hafeez M (2020) Energy capacity, industrial production, and the environment: an empirical analysis from Pakistan. Environ Sci Pollut Res 27:4830–4839. https://doi.org/10.1007/s11356-019-07161-z Millimet DL (2003) Assessing the empirical impact of environmental federalism. J Reg Sci 43(4):711–733 Mu R (2018) Coupling of problems, political attention, policies and institutional conditions: explaining the performance of environmental targets in the national five-year plans in China. Sustainability 10(5):1477 Oates WE (1993) Fiscal decentralization and economic development. Natl Tax J 46(2):237–243 Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16(3):289–326 Pickman HA (1998) The effect of environmental regulation on environmental innovation. Bus Strateg Environ 7(4):223–233 Rassier DG, Earnhart D (2011) Short-run and long-run implications of environmental regulation on financial performance. Contemp Econ Policy 29(3):357–373 Shin Y, Yu B, Greenwood-Nimmo M (2014) Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In: Festschrift in honor of Peter Schmidt. Springer, New York, pp 281–314 Sigman H (2014) Decentralization and environmental quality: an international analysis of water pollution levels and variation. Land Econ 90(1):114–130 Smulders S, Tsur Y, Zemel A (2012) Announcing climate policy: can a green paradox arise without scarcity? J Environ Econ Manag 64(3):364–376 Song M, Du J, Tan KH (2018) Impact of fiscal decentralization on green total factor productivity. Int J Prod Econ 205:359–367 Su CW, Umar M, Khan Z (2021) Does fiscal decentralization and eco-innovation promote renewable energy consumption? Analyzing the role of political risk. Sci Total Environ 751:142220 Sun G, Yuan C, Hafeez M, Raza S, Jie L, Liu X (2020) Does regional energy consumption disparities assist to control environmental degradation in OBOR: an entropy approach. Environ Sci Pollut Res 27(7):7105–7119 Tian GP, Wang YH (2018) Spatial spillover effects between fiscal decentralization, local governments competition and carbon emissions. China Popul Resour Environ 28(10):36–44 Ullah S, Majeed MT, Chishti MZ (2020) Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies. Environ Sci Pollut Res 27(30):38287–38299 Zhang K, Zhang ZY, Liang QM (2017) An empirical analysis of the green paradox in China: from the perspective of fiscal decentralization. Energy Policy 103:203–211
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spelling	The Phan, CongJain, VipinPriyo Purnomo, EkoMonirul Islam, Md.Mughal, NafeesaGrimaldo Guerrero, John WilliamUllah, Sana2021-07-27T13:21:28Z2021-07-27T13:21:28Z2021https://hdl.handle.net/11323/8487https://doi.org/10.1007/s11356-021-15256-9Corporación Universidad de la CostaREDICUC - Repositorio CUChttps://repositorio.cuc.edu.co/The “environment” has become one of the important and debatable topics of the world and policymakers identifying the new predictors of CO2 emissions. Therefore, some economies have been promoting fiscal decentralization to encourage environmental quality by granting more financial autonomy to provincial and sub-national governments. Therefore, this study evaluates the dynamic effect of fiscal decentralization on CO2 in selected nine Asian economies using a fresh dynamic panel ARDL model from 1984 to 2017. The empirical findings show that fiscal decentralization has asymmetric effects on CO2 emissions because a positive change in revenue and expenditure decentralization reduced CO2 emissions in Asia. Moreover, a negative change in expenditure decentralization has also enhanced CO2 emissions in the long run. Thus, clean environmental policies and recommendations can be revised and proposed based on nonlinear findings in the modern era.The Phan, CongJain, VipinPriyo Purnomo, EkoMonirul Islam, Md.Mughal, NafeesaGrimaldo Guerrero, John WilliamUllah, Sanaapplication/pdfengAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Environmental Science and Pollution Researchhttps://link.springer.com/article/10.1007/s11356-021-15256-9Fiscal decentralizationCO2 emissionPollutionARDLNARDLAsiaControlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economiesArtículo de revistahttp://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1Textinfo:eu-repo/semantics/articlehttp://purl.org/redcol/resource_type/ARTinfo:eu-repo/semantics/acceptedVersionAhmed Z, Wang Z, Ali S (2019a) Investigating the non-linear relationship between urbanization and CO 2 emissions: An empirical analysis. Air Qual Atmos Health 12(8):945–953Ahmed Z, Wang Z, Mahmood F, Hafeez M, Ali, N (2019b) Does globalization increase the ecological footprint? Empirical evidence from Malaysia. Environ Sci Pollut Res 26(18):18565–18582Anser MK, Khan MA, Awan U, Batool R, Zaman K, Imran M, Sasmoko, Indrianti Y, Khan A, Bakar ZA (2020) The role of technological innovation in a dynamic model of the environmental supply chain curve: evidence from a panel of 102 countries. Processes 8(9):1033Awan U (2020) Steering for sustainable development goals: a typology of sustainable innovation. In: Industry, Innovation and Infrastructure. Encyclopedia of the UN Sustainable Development GoalsAwan U, Kraslawski A, Huiskonen J (2019) Progress from blue to the green world: multilevel governance for pollution prevention planning and sustainability. In: Handbook of environmental materials managementAwan U, Arnold MG, Gölgeci I (2021a) Enhancing green product and process innovation: towards an integrative framework of knowledge acquisition and environmental investment. Bus Strateg Environ 30(2):1283–1295Awan U, Bhutta MKS, Huiskonen J, Kraslawski A (2021b) Deployment of sustainable development framework in export manufacturing firms for the common good. In: Integrating Social Responsibility and Sustainable Development: Addressing Challenges and Creating Opportunities, p 133Bardhan P (1997) Corruption and development: a review of issues. J Econ Lit 35(3):1320–1346Batterbury SP, Fernando JL (2006) Rescaling governance and the impacts of political and environmental decentralization: an introduction. World Dev 34(11):1851–1863Blomquist W, Dinar A, Kemper KE (2010) A framework for institutional analysis of decentralization reforms in natural resource management. Soc Nat Resour 23(7):620–635Chang CP, Hao Y (2017) Environmental performance, corruption and economic growth: global evidence using a new data set. Appl Econ 49(5):498–514Chen X, Chang CP (2020) Fiscal decentralization, environmental regulation, and pollution: a spatial investigation. Environ Sci Pollut Res:1–23Cheng Y, Awan U, Ahmad S, Tan Z (2021) How do technological innovation and fiscal decentralization affect the environment? A story of the fourth industrial revolution and sustainable growth. Technol Forecast Soc Chang 162:120398Dean JM, Lovely ME, Wang H (2005) Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China. The World BankDu J, Sun Y (2021) The nonlinear impact of fiscal decentralization on carbon emissions: from the perspective of biased technological progress. Environ Sci Pollut Res:1–10Fell H, Kaffine DT (2014) Can decentralized planning really achieve first-best in the presence of environmental spillovers? J Environ Econ Manag 68(1):46–53Goel RK, Mazhar U, Nelson MA, Ram R (2017) Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries. Econ Model 62:171–183Gray WB, Shadbegian RJ (2004) “Optimal” pollution abatement—whose benefits matter, and how much? J Environ Econ Manag 47(3):510–534. https://doi.org/10.1016/j.jeem.2003.01.001Hafeez M, Chunhui Y, Strohmaier D, Ahmed M, Jie L (2018) Does finance affect environmental degradation: evidence from One Belt and One Road Initiative region? Environ Sci Pollut Res 25(10):9579–9592Hafeez M, Yuan C, Yuan Q, Zhuo Z, Stromaier D (2019) A global prospective of environmental degradations: economy and finance. Environ Sci Pollut Res 26(25):25898–25915Halkos GE, Paizanos EΑ (2013) The effect of government expenditure on the environment: an empirical investigation. Ecol Econ 91:48–56He Q (2015) Fiscal decentralization and environmental pollution: evidence from Chinese panel data. China Econ Rev 36:86–100Helland E, Whitford AB (2003) Pollution incidence and political jurisdiction: evidence from the TRI. J Environ Econ Manag 46(3):403–424Holmstrom B, Milgrom P (1991) Multitask principal-agent analyses: incentive contracts, asset ownership, and job design. J Law Econ Org 7:24–52Ji X, Umar M, Ali S, Ali W, Tang K, Khan Z (2020) Does fiscal decentralization and eco-innovation promote sustainable environment? A case study of selected fiscally decentralized countries. Sustain DevKhan Z, Ali S, Dong K, Li RYM (2021) How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital. Energy Econ 94:105060Köllner T, Schelske O, Seidl I (2002) Integrating biodiversity into intergovernmental fiscal transfers based on cantonal benchmarking: a Swiss case study. Basic Appl Ecol 3(4):381–391Konisky DM (2007) Regulatory Competition and Environmental Enforcement: Is There a Race to the Bottom? Am J Polit Sci 51(4):853–872. https://doi.org/10.1111/j.1540-5907.2007.00285.xLevinson A (2003) Environmental regulatory competition: a status report and some new evidence. Natl Tax J 56(1 I):91–106. https://doi.org/10.17310/ntj.2003.1.06Li B, Hao Y, Chang CP (2018) Does an anticorruption campaign deteriorate environmental quality? Evidence from China. Energy Environ 29(1):67–94Li X, Yu Z, Salman A, Ali Q, Hafeez M, Aslam MS (2021a) The role of financial development indicators in sustainable development environmental degradation nexus. Environ Sci Pollut Res:1-12Li X, Younas MZ, Andlib Z, Ullah S, Sohail S, Hafeez M (2020b) Examining the asymmetric effects of Pakistan’s fiscal decentralization on economic growth and environmental quality. Environ Sci Pollut Res 28(5):5666–5681List JA, Gerking S (2000) Regulatory federalism and environmental protection in the United States. J Reg Sci 40(3):453–471Liu Y, Zhu J, Li EY, Meng Z, Song Y (2020) Environmental regulation, green technological innovation, and eco-efficiency: The case of Yangtze river economic belt in China. Technol Forecast Soc Chang 155:119993Mahmood MT, Shahab S, Hafeez M (2020) Energy capacity, industrial production, and the environment: an empirical analysis from Pakistan. Environ Sci Pollut Res 27:4830–4839. https://doi.org/10.1007/s11356-019-07161-zMillimet DL (2003) Assessing the empirical impact of environmental federalism. J Reg Sci 43(4):711–733Mu R (2018) Coupling of problems, political attention, policies and institutional conditions: explaining the performance of environmental targets in the national five-year plans in China. Sustainability 10(5):1477Oates WE (1993) Fiscal decentralization and economic development. Natl Tax J 46(2):237–243Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16(3):289–326Pickman HA (1998) The effect of environmental regulation on environmental innovation. Bus Strateg Environ 7(4):223–233Rassier DG, Earnhart D (2011) Short-run and long-run implications of environmental regulation on financial performance. Contemp Econ Policy 29(3):357–373Shin Y, Yu B, Greenwood-Nimmo M (2014) Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In: Festschrift in honor of Peter Schmidt. Springer, New York, pp 281–314Sigman H (2014) Decentralization and environmental quality: an international analysis of water pollution levels and variation. Land Econ 90(1):114–130Smulders S, Tsur Y, Zemel A (2012) Announcing climate policy: can a green paradox arise without scarcity? J Environ Econ Manag 64(3):364–376Song M, Du J, Tan KH (2018) Impact of fiscal decentralization on green total factor productivity. Int J Prod Econ 205:359–367Su CW, Umar M, Khan Z (2021) Does fiscal decentralization and eco-innovation promote renewable energy consumption? Analyzing the role of political risk. Sci Total Environ 751:142220Sun G, Yuan C, Hafeez M, Raza S, Jie L, Liu X (2020) Does regional energy consumption disparities assist to control environmental degradation in OBOR: an entropy approach. Environ Sci Pollut Res 27(7):7105–7119Tian GP, Wang YH (2018) Spatial spillover effects between fiscal decentralization, local governments competition and carbon emissions. China Popul Resour Environ 28(10):36–44Ullah S, Majeed MT, Chishti MZ (2020) Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies. Environ Sci Pollut Res 27(30):38287–38299Zhang K, Zhang ZY, Liang QM (2017) An empirical analysis of the green paradox in China: from the perspective of fiscal decentralization. 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Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies

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