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The spatial spillover effect of urban sprawl and fiscal decentralization on air pollution: evidence from 269 cities in China

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Abstract

Air pollution is an important factor affecting the quality and sustainability of the development of China’s economy, and urban sprawl is also a typical by-product of the non-intensive development of urban land. At the same time, Chinese-style fiscal decentralization promotes urban sprawl through top-down yardstick competition, which has a serious impact on air pollution. Therefore, exploring the effect of fiscal decentralization and urban sprawl on air pollution is of great significance for regulating local government behavior, curbing urban sprawl, and accurately identifying the causes of air pollution. The dynamic spatial Durbin model with economic geography weight matrix is employed to analyze the direct and moderating effects of fiscal decentralization and urban sprawl on air pollution on the basis of 269 prefecture-level cities in China from 2004 to 2018. The results show that air pollution has a significant retarded time effect and space spillover effect. Both fiscal decentralization and urban sprawl have contributed significantly to air pollution. The moderating effect of urban sprawl and fiscal decentralization on air pollution is significantly positive. From the short-term effects, the coefficients of the total spillover effect, direct spillover effect, and indirect spillover effect of urban sprawl and fiscal decentralization on air pollution are significantly positive, respectively. In terms of long-term effects, the total spatial spillover effect of urban sprawl and fiscal decentralization on air pollution is significantly negative, while the direct and indirect effects of those are negative but not significant. Further research finds that there is significant regional heterogeneity in the influence of urban sprawl and fiscal decentralization on air pollution.

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Notes

  1. See more detail: http://www.stats.gov.cn/tjsj/ndsj/2020/indexch.htm (accessed at1/8/2021); http://www.mohurd.gov.cn/xytj/tjzljsxytjgb/jstjnj/index.html (accessed at1/8/2021).

  2. See more detail: http://www.mee.gov.cn/hjzl/sthjzk/zghjzkgb/201905/P020190619587632630618.pdf (accessed at1/8/2021).

  3. See more detail: http://www.mee.gov.cn/hjzl/sthjzk/zghjzkgb/201905/P020190619587632630618.pdf (accessed at1/8/2021).

  4. The Budget Law of the People’s Republic of China, which was implemented by the Chinese Government in 1995, stipulates that the budgets of local governments at all levels shall be compiled in accordance with the principles of spending within means and balancing revenues. Unless otherwise stipulated by law and the State Council, local governments are not allowed to issue local government bonds, so land transfer income has become the main source of extra-budgetary income for local governments.

  5. Existing studies also indicate that there is a mutual competitive effect on environmental decision-making behavior induced by fiscal decentralization among different regions in China, and one of the mechanisms of this competitive effect is that geographically adjacent regions tend to significantly influence environmental decisions in neighboring regions, which in turn have an impact on air pollution in neighboring regions (Que et al. 2018). Moreover, Deng and Wang (2020) find evidence for the existence of spatial spillover characteristics of urban sprawl on air pollution, i.e., the urban sprawl of local regions affects air pollution in adjacent regions.

  6. Because we use a dynamic spatial panel data model, we further divide the direct and indirect effects into long-term (LR_Effect) and short-term (SR_Effect) effects in the time dimension to reflect the short-term immediate effects of the explanatory variables on the explanatory variables and the long-term effects considering the time-lagged effects, respectively (Chen et al.,2017; Elhorst, 2014; Feng and Wang, 2020).

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Acknowledgements

The authors acknowledge financial support from the Project of National Natural Science Foundation of China (71463057), the Project of Natural Science Foundation of Xinjiang Uygur Autonomous Region (2017D01C071), the key scientific research projects of universities in Xinjiang (XJEDU2019SI003), the Silk Road Foundation of Xinjiang University (JGSL18053), the second phase project of the School of Economics and Management of Xinjiang University (19JGPY001), and the graduate research and innovation project of Xinjiang University (XJ2019G005, XJ2020G020). The party central committee’s Xinjiang-Governance strategy theory and practice research key project (19ZJFLZ09). The usual disclaimer applies.

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Author notes

  1. Jianlong Wang & Qiying Ran

    Present address: School of Economics and Management, Xinjiang University, 666 Shengli Street, Shayibake, Urumqi, 830047, China

  2. Jianhong Cao

    Present address: School of Business and Economics, University Putra Malaysia, 43400, Selangor, Malaysia

  3. Siyu Ren

    Present address: School of Economics, Nankai University, Tianjin, 300071, China

  4. Jianlong Wang, Jianhong Cao and Siyu Ren have contributed equally and should be considered co-first authors.

Authors and Affiliations

  1. School of Economics and Management, Xinjiang University, 666 Shengli Street, Shayibake, Urumqi, 830047, China

    Xiaodong Yang

  2. Center for Innovation Management Research of Xinjiang, Xinjiang University, Urumqi, 830047, China

    Xiaodong Yang, Jianlong Wang & Qiying Ran

  3. School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China

    Haitao Wu

  4. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China

    Haitao Wu

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XY contributed to conceptualization, project administration, formal analysis, writing—review and editing, data curation, and writing—original draft. JW performed writing—review and editing, and validation. JC contributed to writing—original draft, writing—review and editing, and formal analysis. SR performed writing—review and editing, and writing—original draft. QR helped in conceptualization, methodology, funding acquisition, and supervision. HW contributed to conceptualization, methodology, funding acquisition, and supervision.

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Yang, X., Wang, J., Cao, J. et al. The spatial spillover effect of urban sprawl and fiscal decentralization on air pollution: evidence from 269 cities in China. Empir Econ 63, 847–875 (2022). https://doi.org/10.1007/s00181-021-02151-y

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