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The nonlinear impact of fiscal decentralization on carbon emissions: from the perspective of biased technological progress

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Abstract

The impact of Chinese-style fiscal decentralization (FD) on environmental pollution has been studied. Using data from 285 prefecture-level cities across the country from 2003 to 2018. A panel smooth transition regression (PSTR) model of fiscal decentralization’s impact on carbon emissions under energy and environmental-biased technology progress is established. The research shows that biased technological progress determines the direction of the impact of FD on carbon emissions. In areas with low level of energy and environmental-biased technological progress, FD increases carbon emissions. FD reduces carbon emissions in areas with higher environmental technology level but increases carbon emissions in areas with higher energy-biased technology progress. This study has theoretical and practical significance for China’s decentralization system, biased technological progress, and carbon peak target.

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Availability of data and materials

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Funding

This work was supported by the Major Projects of National Social Science Fund of China (Grant No. 18ZDA126).

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J.D. preparation, creation, and/or presentation of the published work, specifically writing the initial draft (including substantive translation). Y.S. acquisition of the financial support for the project leading to this publication.

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Correspondence to Juntao Du.

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Responsible Editor: Eyup Dogan

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Du, J., Sun, Y. The nonlinear impact of fiscal decentralization on carbon emissions: from the perspective of biased technological progress. Environ Sci Pollut Res 28, 29890–29899 (2021). https://doi.org/10.1007/s11356-021-12833-w

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