| Summary: | 碩士 === 國立政治大學 === 財政研究所 === 103 === In 2007, China first established a budgetary accounting item comprising all environmental protection expenses. The aim of this thesis is to research the relationship between fiscal expenditure on environmental protection and air pollution in China based on Environmental Kuznets Curve hypothesis, using Chinese provincial data over 2008–2012. Being different from the EKC research in the past, this study applies a spatial econometric models, namely Spatial Durbin Model (SDM) to control for spatial effects, and utilizes other variables to analyze sulfur dioxide (SO2) emissions in China.
Empirical results show that SO2-GDP relation is inverted U-shaped, and environmental expenditure from provincial government reduces SO2 emissions. There is something noteworthy that both the SO2 emissions and regional environmental expenditure can effect the SO2 emissions in the neighborhood. Due to the spillover of the air pollution and environmental expenditure, the study suggests that P.R.C. government enhance the efficacy of the environmental expenditure and apply the cross-provincial policy to reduce SO2 emissions.
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