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Fiscal policy, green finance, and low carbon transformation nexus: a novel study unleashing the synergistic effects of carbon reduction and pollution in China

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Abstract

Under the simultaneous demands of combating environmental pollution and decreased carbon emissions, it is critical to investigate the combined effect of agricultural contamination reduction and fiscal policy carbon reduction to support and promote green agriculture and low-carbon transformation. Based on provincial panel data of 2007 to 2020 in China, this paper employs the spatial Dubin model to empirically examine the pollution reduction and carbon reduction effects of fiscal policies supporting agriculture, as well as calculating the synergistic effect of pollution reduction and carbon reduction. Our study’s findings reveal that non-point source agricultural pollution and agricultural carbon emissions have a tendency of growing and subsequently reducing, such as increasing from 2007 to 2015 and decreasing from 2016 to 2020. Second, results demonstrate that agricultural carbon emissions and agricultural pollution have a positive geographical dependency in each province, and fiscal policies supporting agriculture have high-high and low-low spatial clustering features. Furthermore, fiscal policies that promote agriculture can lower local agricultural carbon emissions and pollution while also having a considerable beneficial spillover impact on neighboring provinces. According to the study findings, the fiscal policy for supporting agriculture has a negative pollution reduction impact and a positive synergistic effect, resulting in a synergistic effect of agricultural pollution reduction and carbon reduction. The outcomes of this study can serve to promote carbon-reduction measures and provide recommendations for future policy development.

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Data availability

The datasets used in the current study are available from the corresponding author on reasonable request.

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Funding

This research study is supported by the National Natural Science Foundation of China Grant No. (72203080)：Influence Mechanism of Digital Economy Participation on Farmers' Low-Carbon Production Behaviors and Performance; China Postdoctoral Science Foundation (2022M309634)：China's agricultural pollution reduction and carbon reduction: synergistic effects, spatial spillovers, and policy supply; Jiangsu University Philosophy and Social Science Research Project Grant No. (2022SJYB1145)：A Study on the Power Mechanism and Policy of Digital Economy Driving the Green and Low Carbon Transformation of Agriculture in Jiangsu Province under the Background of "Dual Carbon".This research study is supported by the National Natural Science Foundation of China Grant No. (72203080), China Postdoctoral Science Foundation (2022M309634), and Jiangsu University Philosophy and Social Science Research Project Grant No. (2022SJYB1145).

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Authors and Affiliations

  1. Agricultural Information Institute, Chinese Academy of Agricultural Sciences, Beijing, 100081, China

    Xiaohui Huang & Fengying Nie

  2. Business School, Jiangsu Normal University, Xuzhou, 221116, China

    Xiaohui Huang & Fei Yang

  3. School of Management, Hainan University, Haikou, China

    Shah Fahad

Authors
  1. Xiaohui Huang
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  2. Shah Fahad
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  3. Fei Yang
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  4. Fengying Nie
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Contributions

Xiaohui Huang: innovation and main idea of the paper, data analysis, literature review and methodology sections, interpretation of the estimation results, discussion, and conclusion sections; Fangying Nie and Fei Yang: introduction, review and editing, validation, discussion of results; Shah Fahad: review and editing.

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Correspondence to Fengying Nie.

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Huang, X., Fahad, S., Yang, F. et al. Fiscal policy, green finance, and low carbon transformation nexus: a novel study unleashing the synergistic effects of carbon reduction and pollution in China. Environ Sci Pollut Res 31, 4256–4268 (2024). https://doi.org/10.1007/s11356-023-31482-9

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