Study on Spatial Econometrics of Environmental Governance Efficiency of Provincial Fiscal Policy in China

Abstract

This paper first measures the environmental governance efficiency of provincial fiscal policy in China during 2007-2014 by using minimum distance algorithm which is the strongest frontier, the advantage of this method is that the change of inputs or outputs is minimum after the efficiency reaching the production frontier, then analyzes the regional differences and spatial correlation of environmental governance efficiency, finally establishes spatial panel model to analyze environmental decentralization and public participation's impact on environmental governance efficiency. The results show that the provincial environmental governance efficiency has significant spatial correlation, environmental decentralization and environmental governance efficiency of the sample period showed a negative relationship, the continuous expansion of the decentralization of environment in neighboring areas will restrain the improvement of environmental governance efficiency in the surrounding areas. Public participation and environmental governance efficiency are significantly positively correlated. The improvement of public participation in the neighborhood is helpful to improve the environmental governance efficiency in the surrounding areas. Therefore, we should reasonably control the local government decentralization, change the local government performance evaluation of the only GDP, improve the local government environmental responsibility mechanism, actively guide the public participation, and promote overall improvement of the local environmental governance efficiency.