Financial Decentralization Research Articles

Financial decentralization, renewable energy technologies, energy subsidies and wind power development in China: An analysis of nonparametric model

Currently, financial development and renewable energy technologies have become new tools to stimulate wind power development, attracting attention from the government and academia. However, most existing literature uses linear methods to investigate wind power, masking the nonlinear relationship between these factors and wind power development. The objective of this study is to reveal the nonlinear relationships between these economic factors and wind power development, providing a basis for the government to design differentiated phased policies. Compared to traditional linear methods, the nonparametric models can truly simulate the nonlinear relationship between these economic factors and wind power development. Given this, this article uses the nonparametric additive regression model to investigate these links. The result of this study shows: (1) financial decentralization produces a U-shaped impact on wind power, indicating that expanding the autonomy of local financial institutions has driven wind power development in the later stage. (2) The impact of renewable energy technologies demonstrates an inverted U-shaped pattern, signifying that the driving effect of green technology has shifted from being prominent in the early stage to being reduced in the later stage. (3) Energy subsidies also exert an inverted U-shaped effect, meaning that its driving role is prominent in the early stage. (4) In addition, the impacts of CO2 emissions, wind power prices, environmental governance investments, and urbanization on wind power development also exhibit non-linear characteristics. Finally, this article proposes policies in response to the stage where economic tools don't play a role in driving wind power development.

Analisis Kinerja Keuangan Anggaran Pendapatan dan Belanja Lembang (APBL) di Lembang Burasia Kecamatan Bittuang Kabupaten Tana Toraja

Lembang Financial Performance Analysis is a form of accountability and a manifestation of financial decentralization and authority from the center to lembang. A lembang that is able to manage its finances effectively and efficiently is certainly expected to be able to stimulate the economy through absorption of the budget in productive and potential sectors so that overall it will be able to increase efficiency. In this study, efficiency ratio analysis is used to see how far the Lembang Burasia Government is in managing its regional finances. The results of the calculation of regional financial efficiency ratios average 120%.

Financial decentralization and third-Mission outputs: A comparative study of Higher Education contexts in Brazil and the United States

Third Mission (TM) drives universities to a purpose beyond their traditional role, especially in local socioeconomic and innovation ecosystems. To investigate the issue, we consider an exploratory and comparative study of two different governance systems of public universities (Southeast Brazil-region 1 and Texas-US-region 2). The comparison took into account data from international universities' rankings performance to address TM and the structure of financial sources to address financial decentralization. The available evidence seems to suggest a positive association between the level of financial decentralization and the capability of the system of HE to deliver TM outputs. Universities under decentralized governance structures, which permit more autonomy to manage their resources, presented better results in most selected TM indicators. These findings reinforce the general belief that the governance arrangements that allow exploring synergies within local business ecosystems are more appropriate for ensuring organizational changes in the direction of entrepreneurial action.

Exploring the sustainable growth pathway of wind power in China: Using the semiparametric regression model

China not only faces severe energy shortages, but also enormous pressure to reduce CO2 emissions. The objective of this article is to explore effective pathways and policies to promote wind power development in China. The interesting results include: (1) the impact of environmental regulations and green finance on wind power is nonlinear. Specifically, environmental regulations exert an inverted U-shaped impact in the central and eastern regions, and a U-shaped effect in the western region. (2) Green finance produces a U-shaped impact on wind power in the eastern region, and an N-shaped effect in the central and western regions. The impact of other economic factors shows a linear pattern. (3) Urbanization has the greatest impact on wind power in the central region, because of greater investment in technological talents and faster growth in high-tech industries. (4) Green technology innovation has made the greatest contribution to wind power in the western region, because of the rapidly growing green energy technology. (5) Financial decentralization has the smaller driving effect on wind power development in the eastern region, due to small financial investment. (6) Wind power prices have a driving effect on wind power development in the western region, but not played a driving role in the central and eastern regions. Finally, this article proposes promoting policies based on estimated results.

The Implementation of Good Governance Principles in the Asset Management of Regional-Owned Enterprises of South Sulawesi Province

At the local government level, activities related to regional autonomy and decentralization go beyond merely implementing financial decentralization from the Central Government to Local Governments or Local Governments to Local Government Work Units (SKPD). It also includes the decentralization of asset management at the regional business unit level. The Regional State-Owned Enterprise (Perseroda) of South Sulawesi Province, as one of the units of Regional-Owned Enterprises, requires proper governance to promote regional autonomy and optimize regional revenue. Therefore, it is crucial to implement good governance principles to ensure accountable financial and asset management, which represents a government’s success in providing public services. The implementation of good governance principles includes accountable, transparent, and law-abiding asset management. This study aims to analyze the application of the values and principles of good governance in asset management within the Perseroda of South Sulawesi Province. The study adopts a qualitative approach, and data are collected through interviews, observations, and document analysis. The data analysis technique is an interactive model, with data validity tested through triangulation. The results indicate that the application of values and principles of good governance in asset management still needs improvement due to constraints related to the quality of human resources and the adoption of technology in asset management. Efforts to enhance the quality of human resources, employee motivation, socialization, and control mechanisms for implementing good corporate governance must be optimized, with the aim of integrating these principles and values within the body of Perseroda in South Sulawesi Province.
 Keywords: asset governance, good governance, regional-owned enterprises

How does financial decentralization synergies carbon reduction and pollution control in China?

This study looks at how carbon reduction, pollution management, and monetary decentralization in China all work together for a win-win situation. Since China is the most significant contributor to global warming, the country must implement policies to cut carbon emissions and curb pollution. One possible answer is financial decentralization, delegating federal financial responsibilities, and decisions to state and regional governments. The study used the weighted matrix analysis technique, LM matrix analysis technique, and ARDL short-run and long-run analysis estimates. However, the degree to which it will help China reduce carbon emissions and regulate pollution is unclear. This study takes a multifaceted approach to the investigation of this problem. Determining the efficacy of financial decentralization in addressing environmental concerns and drawing policy implications for China's environmental governance framework requires investigating the drivers of this trend and the mechanisms through which it operates. We perform a comprehensive empirical analysis to examine the results of using Chinese data from 1999 to 2019. This study's results provide new information to the literature by showcasing the power of fiscal decentralization in propelling environmentally sound policies in China. Central policy takeaways from the report include decentralizing financial authority to local governments, encouraging cooperation across multiple tiers of government, and setting up effective systems for monitoring and enforcing compliance. These policy suggestions can help China decrease carbon emissions and regulate pollution more efficiently, paving the way to better environmental results and a more sustainable future.

정부간협력에 대한 조정제도의 영향

The study examined how the perception of the effectiveness of the dispute mediation institution and the local financial coordination system affects intergovernmental cooperation. To this end, the study conducted a comprehensive analysis using crosssectional regression analysis and joint OLS based on the “Survey on Intergovernmental Relations(IGR)” data(2011, 2014, 2017, 2020) provided by the Korea Institute of Public Administration.
 Summarizing the results, the perception of the effectiveness of the dispute mediation system and the local financial coordination system had a static effect on the perception of intergovernmental cooperation, and the sense of cooperation among public officials and financial decentralization also had a static effect.
 Based on this, in order to further promote intergovernmental cooperation, policy implications such as changing the perception of not only the local self-government system but also the dispute mediation system and the local financial coordination system were proposed.

The relationship between financial decentralization and quality of maternal health services

This study aimed at investigating Decentralisation policy implementation and quality of maternal health services in Kihiihi Town Council and Nyanga Sub county-Kanungu District. It was guided by three objectives namely. The objectives were; to determine the relationship between Political decentralization and the quality of maternal health services in Kihiihi town council and Nyanga Sub County - Kanungu district, to find out the relationship between financial decentralization and quality of maternal health services in Kihiihi town council and Nyanga Sub County - Kanungu district and to assess the relationship between administrative decentralization and quality of maternal health services in Kihiihi town council and Nyanga Sub County -Kanungu district. The study adopted descriptive crosssectional research and correlational designs on a sample of 235 respondents. Data was collected using a questionnaire and an interview guide. Quantitative data were analyzed using frequencies, percentages mean, correlation and regression. Qualitative data were analyzed using thematic analysis. Inferential analysis results indicated that financial decentralisation had a strong positive significant relationship with quality of maternal health services. Therefore, it was concluded that financial decentralisation as components of decentralization policy implementation is essential for quality of maternal health services. Keywords: financial decentralization, maternal health services, women.

Analysis of the Leadership Role on Employee Well-being. Study Case: HKBP District VIII DKI Jakarta

Employee well-being is high on the corporate agenda because companies and their boards of directors connect and correlate it with success. Employees’ eligibility for perks, insurance, and medical care is frequently determined by socioeconomic considerations. This means that disadvantaged groups are frequently left behind, although they require the most assistance. HKBP or Huria Kristen Batak Protestan is one of the largest church organizations among Protestant churches in Indonesia and Southeast Asia. As one of the largest churches in this country, HKBP should be an organization that can set an example in terms of organizational governance that is characterized by being clean, transparent, visionary, has access to the public, and is based on the needs of the congregation. But the hope to be an example, an example organizationally has not been realized properly because of turmoil from internal problems that went wrong. Currently, by looking at HKBP’s internals, it has even caused turmoil, and many inequalities and made HKBP’s management far from what we expected. There are even terms for HKBP wetland and dryland HKBP. Of course, this fact cannot be denied, even though all HKBP servants have made promises to be willing to be placed anywhere to preach the gospel. The struggle for churches that are wetlands and those who have financial resources is certainly one of the evaluation materials and a weakness of HKBP’s financial decentralization, where this does not at all reflect the life of God’s servants who should receive the assigned placement for each individual. This also shows that well-being is not evenly distributed and creates gaps among servants. This study aims to identify leadership roles to employee well-being, such as Job Performance, Ethics or Personal Characteristics, Communication or Feedback, and Justice or Fairness. To determine what has to be addressed and developed by leaders to improve the well-being of employees in HKBP District VIII DKI Jakarta can be seen from a leadership role on employee well-being indicators, such as Positive Emotions, Engagement, Relationship or Positive Relationships, Meaning, and Achievement (PERMA). Based on this research, the priority that must be improved in Leadership is Justice or Fairness. HKBP District VIII DKI Jakarta has to level up and maintain the existing program, such as seminars about self-development in leadership and annual programs to intensify the bond between the leader and fellow church ministries.

Does financial decentralization create financial risk?

The reform of financial decentralization and fiscal decentralization between central and local governments in China is important to strengthen the role of local governments in preventing financial risks, and is a hot issue of concern for academics and the financial industry. This study employs panel data from 30 provinces and cities in China between 2006 and 2019 to examine the impact of financial decentralization on financial risk. The empirical results demonstrate that financial decentralization can effectively reduce financial risks, with significant spatial heterogeneity observed in the impact. Moreover, the study finds that there is no effective synergy between fiscal and financial decentralization in suppressing financial risks, and financial decentralization does not increase financial risk by strengthening promotion incentives. Therefore, as the reform of the central and local economic decentralization system continues, greater attention should be paid to the coordination between financial and fiscal decentralization, and financial risk indicators should be integrated into officials' promotion incentive assessments to better prevent financial risks.

Nexus of financial decentralization and institutional resource consumption efficiency for a carbon neutral society: Policy implication of China

The Chinese government's use of fiscal policy, which includes fiscal income and spending, is crucial in its fight against environmental pollution and climate change. Innovation‐driven has arisen as a new alternative to reconcile economic success with environmental conservation in light of tighter resource restrictions and the suggestion of the Chinese High‐quality Development policy. The paper uses an econometric model to examine the connection between institutional resource consumption efficiency and carbon neutrality, using a data set consisting of Chinese inter‐provincial panel data from 2007 to 2020 as a research sample; fiscal decentralization is also discussed as a potential moderating factor. Collaborative innovation positively boosts ecological efficiency and produces geographical spillovers, and the findings suggest so long as the economic distance is considered. When it comes to increasing ecological efficiency, collaborative innovation plays a more important role than financial decentralization alone. Among these is the improvement of carbon neutrality, which is best achieved via the joint promotion of ecological efficiency and industrial organizations. By reducing the intensity of the positive effect of innovative cooperation on ecological efficiency, the moderating effect suggests that fiscal decentralization is a critical factor in this relationship. Promoting China's ecological efficiency necessitates a fair distribution of local budgetary spending. China should also actively encourage the degree of synergy between institutional resource consumption efficiency and associated institutions to improve eco‐efficiency.

Territorial disparities of the Human Development Index in the North Development Region of the Republic of Moldova

Human development is a component part of the development of socio-economic, natural-geographical systems. Currently, the need for comparative studies of human development appears increasingly imperative, in an attempt to track the level reached by states, regions or urban and rural human habitats within them, with the goal of evaluating the effectiveness of development policies applied by governments or regional and local administrations, beyond certain indicators or statistical series that attest to certain aspects of human development. Through this study, we proposed the calculation of the HDI at the level of human habitats of the North Development Region of the Republic of Moldova, with the expansion of the number of indicators taken into account, compared to the indicators taken into account by the UNDP in the calculation of the HDI of the states. This fact would allow a more accurate radiography of human development at the locality level. The purpose of this study is to estimate and determine the spatial differences of the Human Development Index (HDI) in the localities of the North Development Region in the context of the implementation of the Regional Development Strategy of the Republic of Moldova and the intention of European integration of the country. The main results of the study consist in the creation of a valuable cartographic set with reference to the four dimensions of human development, as well as the map of the aggregate index of human development related to the human habitats of the region, a typology that can serve as a benchmark in the agrumentation of territorial, administrative and financial decentralization which is to be implemented. The main methods used in the study: comparative, statistical, direct standardization, mathematical, the GIS system. The HDI study of the North RD includes 315 urban and rural localities within the region, through four dimensions that attest the level of human development and 12 indicators (values), these being related to the habitats of primary rank: communes and villages of their composition.

Study on the Impact of Financial Decentralization on China's Green Welfare

The 20th Party Congress pointed out that development should be planned on the basis of the harmonious coexistence of human beings and nature. A reasonable allocation of financial resources is a crucial guarantee for achieving the growth of green welfare. This paper empirically examines the impact of financial decentralization on green welfare based on panel data of 30 Chinese provinces from 2005 to 2019. Results demonstrate that: (1) Financial decentralization significantly promotes regional green welfare, and the effect is more significant in the eastern region than in the central and western region; (2) In terms of specific sub-welfare dimensions, financial decentralization can significantly foster economic welfare, social welfare and environmental welfare, but not resource welfare; (3) Furthermore, political incentive cannot enhance the contribution of financial decentralization to green welfare, and fiscal incentive can significantly reduce the contribution. The findings of this paper provide a new reference for deepening the financial decentralization system reform, ameliorating the assessment system of local governments and upgrading the level of green welfare of Chinese residents.

The ability of financial support of the educational sphere in the process of financial decentralization of the region: economic and legal aspect

The article considers the possibility of optional implementation of financial and educational decentralization approaches in Ukraine. The strategic role of CMU Order No. 333-r dated April 1, 2014 on the approval of the Concept of Reforming Local Self-Government and Territorial Organization of Power in Ukraine as a conceptual measure of financial and educational transformations is outlined. The legal status and legal options of educational self-government at the level of OTG are defined in accordance with the national "normative basis of decentralization": the Law of Ukraine "On the Voluntary Association of Territorial Communities" No. 157-VIII, the Law of Ukraine "On the Principles of State Regional Policy" No. 156-VIII, etc., as well as relevant legislation (the Law of Ukraine "On Education" No. 2145- VIII of the Law of Ukraine "On Higher Education" No. 1556-VII, etc.).
 A terminological distinction between the concepts of "power decentralization" and "financial decentralization of the region" is proposed. The problem of budgetary and educational provision of scientific and educational facilities is conceptualized spheres in Ukraine through the prism of the Budget Code of Ukraine No. 2456-VI.
 Examples of foreign decentralization-educational (management and financial) support are presented and implementation methods of its application in Ukraine are proposed.
 The ideological problem is that the decentralization of power presupposes, among other things, the financial independence of the region (one of the principles of decentralization is the transfer of resources from the ODF to the OMS), and the issue of its provision is problematic for a country that is used to building financial and economic relations by the "vertical" principle, i.e. "from top to bottom".
 Taking into account the dependent connection of the educational sphere in Ukraine on the accompanying and sectoral legislation, such trends, without having a direct impact on the volume and expenditure mechanisms of scientific and educational support from the State Budget of Ukraine, create a precedent of institutional and jurisdictional inconsistency.
 The issue of financial support for higher education and directly – institutions of higher education (HEIs) has several problems, among which “financing of expenses for the maintenance of HEIs, not the actual cost of the educational process” stands out; calculation of budget transfers only in the amount of "educational needs" (without cultural and sports and social assistance initiatives of the development and education self-government); inadequate financial and logistical support of vocational education as a subcomponent and pregenerator of higher education in Ukraine.

Analisis Kinerja Keuangan Pemerintah Daerah Dan Pengaruh Pendapatan Asli Daerah, Dana Perimbangan, Dan Sisa Lebih Pembiayaan Anggaran Terhadap Belanja Modal

<p align="justify">This study aims to determine the financial performance of the Districts/Cities Governments in Jambi Province with the Regional Financial Independence Ratio and the Degree of Regional Financial Decentralization. As well determine the effect of Original Local Government Revenue (PAD), Balancing Funds and Financing Surplus on the Capital Expenditure in Districts/Cities in Jambi Province. This study is a quantitative descriptive research and quantitative research. The data used in this study is quantitative data with documentation techniques. The sample for this research is 11 districts/cities in Jambi Province on the official website of the Directorate General of Fiscal Balance. This study uses the Descriptive Analysis Method using ratios was used to financial performance of the Districts/Cities Governments in Jambi Province and Multiple Linear Regression Analysis with the help of SPSS version 25 was used to determine the effect of Original Local Government Revenue (PAD), Balancing Funds and Financing Surplus on the Capital Expenditure in Districts/Cities in Jambi Province. The results showed that the financial performance of the Districts/Cities Governments in Jambi Province, in terms of Regional Financial Independence Ratio, was categorized as very low and the Degree of Regional Financial Decentralization Ratio, it was categorized as very less. The results of testing the effect of PAD, Balance Fund and SILPA variables on Capital Expenditure show that PAD has no effect on Capital Expenditure, Balance Fund has no effect on Capital Expenditure, SILPA has an effect on Capital Expenditure.</p><p><strong>Keywords</strong>: Local Government Financial Performance, PAD, Balancing Fund, SILPA</p>

Impact of financial decentralization on energy poverty and energy demand tendencies in Chinese settings.

This study intends to test the connection between fiscal decentralization, energy demand dynamics, and energy poverty status from the context of China. The study has collected large datasets ranging from 2001 to 2019 to justify the empirical findings. The long-run analysis economic techniques were considered and applied for this. The results indicated that a 1% adverse change in energy demand dynamics causes 13% of energy poverty. Supportively, a 1% positive rise in energy supply to fulfill energy demand reduces energy poverty by 9.4% in the study context. Moreover, empirical findings show that a 7% rise in fiscal decentralization accelerates 19% fulfillment in energy demand and mitigates energy poverty up to 10.5%. We demonstrate that if enterprises can only alter their technology choices in the long run, the short-run reaction of energy demand must be less than the long-run response. Second, we demonstrate that the elasticity of demand approaches its long-run level exponentially at the rate defined by the capital depreciation rate and the economy's growth rate, using a putty-clay model with induced technical development. According to the model, it takes more than 8years for half of the long-run impact of induced technological change on energy consumption to be realized in industrialized nations once the carbon price is implemented. This research document also gives multiple policy directions for policy developers.

THE BUDGET POTENTIAL OF LOCAL FINANCES: WORLD EXPERIENCE, THE CASE OF UKRAINE

The article examines issues related to the key tasks of forming and implementing local budgets. The main goal of the work is to study the peculiarities of the formation of the budget potential of local finances in Europe and the USA, to determine the key points of local self-government in the world experience, to study the peculiarities and dynamics of the use of local budgets of Ukraine in conditions of decentralization and martial law. The urgency of solving the problem lies in the fact that globalization processes and the course towards European integration of the national economy, and decentralization require a new approach to the formation of local budgets aimed at balancing financial income with expenses, increasing the independence and powers of local authorities.This publication highlights the global experience of forming and implementing local budgets. The budget structure of the countries of Europe and the USA has been studied. It was noted that economic and financial decentralization in the countries of Europe and the USA led to the formation of intergovernmental financial relations that combine the principles of both budgetary unitarism and budgetary federalism. It was determined that the constitutions of some countries sometimes do not regulate the organization of local self-government at all (for example, in the USA).The article examines the current state and peculiarities of the implementation of local budgets in the conditions of decentralization of financial resources of Ukraine and during the period of martial law. inefficient use of financial resources. The study concludes that in modern conditions, it is necessary to increase the powers of local authorities to fill the local budget with income, and therefore, to increase the share of their potential. Taxes and fees transferred to local self-government departments must be under the clear and full control of these bodies.For the effective formation and implementation of local budgets, it is necessary to constantly analyze them and implement global best practices to increase revenues to local budgets, and as a result, the budget potential of the region.

Implementation of the principle of decentralization of power in Ukraine

The article examines the history of decentralization of state power in practice in the countries of the European Union. The characteristics of local self-government as a key subject of decentralization of power are given, and the principle of subsidiarity is revealed. The problems of implementation of the decentralization of state power are outlined, in particular foreign and domestic experience. The article analyzes and systematizes the key risks and problems that arose during the implementation of local self-government reform and financial decentralization in Ukraine.
 The factors that caused the residents of local communities to resist the reform or passive attitude to the creation of united territorial communities were identified and investigated, in particular, economic (expectation of a decrease in the financial capabilities of communities as a result of unification), socio-cultural (the presence of ethnic, cultural and other differences between residents neighboring communities), psychological (distrust of the central and local authorities, fear of the reduction of social sphere facilities, etc.), geographical (deterioration of access to service centers), ecological (attempts of community residents to avoid moving harmful industries to their own territory).
 The geographical unevenness of the pace of the unification of territorial communities during decentralization has been revealed. The main reasons and forms of resistance of district councils and district state administrations to the decentralization reform have been clarified.
 Attempts to reform local self-government in Ukraine have been made since the declaration of its independence, but they have always been hindered by the lack of consensus among the political elite regarding the vision of the external and internal political vector of the state's development in general and approaches to the administrative-territorial division and organization of local authorities in particular. One of the key problems that arose from the very beginning of the reform was ineffective communication between the authorities and citizens, which caused an information vacuum on the ground. As sociological polls showed, citizens of Ukraine had rather low awareness of the features of the decentralization reform.
 Attracting highly qualified specialists to manage them turned out to be a difficult problem for the newly created united territorial communities. The low quality of personnel is usually related to the fact that most of the united communities are formed exclusively from villages, which cannot provide employees of local self-government bodies with competitive salaries and high standards of living.

Microregions of priority development as an alternative direction of strengthening the regional economy and financial decentralization

The article proposes to expand approaches to the development of Ukraine's regions. The border regions are in a unique position, where, because of military actions, negative trends are observed: outflow of investments, the release of the labor force, relocation of enterprises, deterioration of infrastructure, a complication of movement of goods and services, deterioration of the ecological condition. Considering the realities, Ukraine must learn to live in new conditions and not waste a unique chance for post-war recovery, reboot, and rapid, inclusive economic development. Developing and implementing sometimes aggressive, innovative steps based on a combination of world experience in creating priority economic development areas should bring life back to the borderlands. The special economic conditions of the functioning of the regions can play a vital role in the country's post-war reconstruction, attracting investments and influencing economic development, social well-being, and ecological restoration in compliance with sustainable development goals. We have proposed strategic steps based on the analysis of regional development opportunities. It is based on consistent actions to identify problems of a socio-economic nature, determine the potential and direction of business interaction with state authorities, formation of proposals to overcome obstacles at different levels. The step-by-step introduction of special conditions for the functioning of microregions of priority development has been defined from the adjustment of the legislative framework to facilitate business to the creation of comfortable conditions for the entry and support of the investor. The generalization of the effect of special economic incentives is the main issue for the developers of creating microregions of priority development, mainly focusing on critical areas and sustainable development. It is possible to measure the efficiency of such microregions by comparing the economic benefits with the benefits involved. At the same time, rules and transparency should be the basis for attracting transnational business and territorial development. Keywords: priority development microregions, special economic zones, financial decentralization, regional economic development, foreign investments.

Role of financial decentralization on carbon taxation and carbon emission: Way forwards for economic recovery.

The study intends to assess the role of financial decentralization on carbon taxation and carbon emission to recommend the way forwards for economic recovery. To estimate the nexus, study applied the cointegration analysis technique, CGE estimation model, long-run analysis using t-CGE model, and robustness analysis technique on Chinese data. Research findings declare that financial decentralization has significant role on extending the carbon taxation in China and financial decentralization supported 14.92% to expand carbon taxation throughout the Chinese industries. In such industries, pollution emission industries are the top of the list including transportation industry and other manufacturing companies. Overall, manufacturing industries size is about 78% and 11% size of transportation industry is included. Correspondingly, the findings also revealed that financial decentralization supports climate change mitigation with 29% and carbon taxation limits carbon emission with 44% in Chinese industries. Study directs to the stakeholders to enhance carbon taxation schemes in all sectors of the all the industries of China and come up with the viable policy action so that the desired sustainable development goals may achieve effectively. Hence, stakeholders need to consider recommendations of preceding research to enhance green economic recovery.