Local Government Sustainability Research Articles

Fostering sustainability in local government: The institutional work perspective on the accounting–management nexus

Fostering sustainability in local government: The institutional work perspective on the accounting–management nexus

New development: Public managers between a rock and a hard place—social-financial sustainability in local government

IMPACT The article sheds light on the intricate trade-offs encountered by public managers when coping with competing priorities and navigating between social and financial sustainability. For public managers, the key takeaway lies in recognizing that achieving social–financial sustainability necessitates specific strategies, organizational structures, and tools in public organization. These elements must be integrated, for instance, into performance goals combining social–financial sustainability. As trade-offs are made in budgeting and financial management processes, participatory and collaborative approaches are essential for desired social–financial sustainability impacts. By identifying and highlighting these trade-offs, the article initiates a dialogue where various stakeholders—each with distinct roles, goals, and values—can converge.

Effects of Facilitating Internal Control Mechanisms on Financial Sustainability:The Case of Local Governments in Spain

This paper provides evidence about the effects of facilitating internal control mechanisms on the financial sustainability of local governments. Specifically, it explores the effect of Spanish regulation mandating that municipalities prepare the Annual Financial Control Plan (PACF for its acronym in Spanish). The study is based on the PACFs of 77 Spanish municipalities and relates the quality of risk analysis and the scope of planned public audit activities to the financial sustainability of the municipalities. Our results show that higher quality risk-based planning and increased use of operational audits contribute to financial sustainability. We also find that municipalities with less complex structures and women in positions of responsibility, such as mayor or controller, have greater financial sustainability. In contrast, a lack of resources for the development of the control function is a limiting factor.

Do local government sustainability initiatives impact corporate social sustainability practices?

AbstractThis study quantifies the initiatives of local governments' Sustainable Development Goals (SDGs) and examines their impacts on regional corporate social sustainability practices. Our analysis reveals statistically significant results for corporate action on the following government initiatives on SDGs: BOD/COD effluent standard (6. clean water and sanitation and 14. life below water); number of students per personal computer (PC) (4. quality education); percent of female prefectural assembly members (5. gender equality and 16. peace, justice, and strong institutions); and minimum wage (1. no poverty and 2. zero hunger). These results are robust after controlling for peer effects by other firms in the surrounding regions. The evidence also indicates that these trends are more pronounced in footloose industries than in heavy industries.

Importance of sustainable local government funding in tackling health inequalities in the UK.

This article looks at how there is evidence that policies that alter our environment are more effective than those that work to change individual behaviour. In order to create change, a more nuanced methodology to allocate local government funding is needed.

Financial Sustainability and Sustainable Development in Local Governments: Empirical Insights

This study investigated if and how financial sustainability affects the ability of local governments to meet the 17 Sustainable Development Goals (SDGs) established by the United Nations. Two samples consisting of Italian and Spanish local governments were analyzed for the analysis. These municipalities were selected, as they provide many essential services largely linked with several SDGs. Findings show that local governments with better financial conditions devote more effort to achieving the SDGs connected with the biosphere, as well as social and economic development. Our results can stimulate politicians and managers to fight against tax evasion to increase their resources.

Effectiveness of Financing Measures to Reduce Low Emissions in Poland - a Case Study

Local authorities are increasingly facing the challenges of climate change, which requires adaptation of various elements of local government systems, including infrastructure, communities and local economies. Operating in an ever-changing reality, local government units should plan for the necessary sustainable local government investments, with particular attention to structural gaps and financial mismatches. Local government is responsible for ensuring local energy security and thus for 'environmental sustainability'. The overall objective of this study is to assess the effectiveness of financing low-emission lowering measures from the Environmental Protection and Water Management Fund in municipalities in Lubusz Province in 2020. The article uses cause-effect relationship analysis (regression models). Investments implemented by local governments generally have a positive impact on the reduction of low emissions, although the results of the study indicate a negative impact of financing investments in alternative energy sources (RES). This may be related to large investment outlays, as well as difficulties in spatial planning, environmental impact and administrative inefficiency.

What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia

This research aims to determine the influence of financial independence, budget solvency, service solvency, population, and GRDP on local government financial sustainability. The results of this research are important to provide input for local governments in arranging appropriate policies to encourage financial sustainability. This research was conducted on 23 regional governments in Aceh by using the panel data regression analysis method with the assistance of the Eviews 12 version. The data was taken from the audited financial reports of regional governments in the 2017-2021 period. This research employed income surpluses in operational reports to measure regional government financial sustainability. The research results show that financial independence has no effect on financial sustainability, but budget solvency and service solvency have a significant positive effect. In contrast, population and GRDP have a negative effect on financial sustainability.

Tax Authorities and Local Government Development in Poland

Purpose of the study: The purpose of this article is to examine the influence that tax authorities have had on the growth and progress of local governments in Poland. Through an analysis of the financial autonomy, degree of decentralisation, and local tax policy of Polish municipalities, this research endeavours to illuminate the correlation between tax authorities and the growth of local governments in Poland.
 Methodology: This article conducts a comprehensive literature review on the subject of local tax competition studies in Poland. In addition, empirical experiments conducted on Polish data to determine the concept's applicability throughout the region are included.
 Main findings: Based on the analysis, Poland holds a considerable level of financial autonomy, which is attributed to its authority in determining local tax rates and its freedom to finance investment initiatives. Moreover, research has revealed that the fiscal policies implemented by neighboring municipalities in Poland exert a substantial influence on the choices made by local legislators. This suggests that competition and local tax policy have a significant impact on the evolution of local administrations across the nation.
 Application of the study: The findings of this study have significant implications for policymakers and local authorities in Poland. Understanding the impact of tax authorities on the development of local governments can help in formulating effective fiscal policies and strategies for sustainable development. By recognising the influence of tax regulations and revenue diversification on fiscal sustainability, policymakers can make informed decisions regarding local tax policies and financial autonomy.
 Originality/Novelty of the study: In the article, the author emphasised the examination of the impact of tax authorities on the development of local governments in Poland, particularly in the context of the limited tax autonomy of Polish local authorities. The study delves into the unique challenges and opportunities that arise from this restricted tax autonomy and how it influences the fiscal sustainability and development of local governments in the country. Additionally, the analysis of the effects of municipal tax policy, including the influence of neighbouring municipalities' tax rates on local politicians' decisions, provides valuable insights into the dynamics of tax competition and its implications for local governance in Poland.

The Impact of Administrative Intensity on Financial Sustainability in Local Government: An Empirical Analysis of New South Wales

The Impact of Administrative Intensity on Financial Sustainability in Local Government: An Empirical Analysis of New South Wales

Effectiveness of ICM system and its contribution to local capacity development: Case study in West Papua Province

Integration and coordination of various coastal and marine management efforts is the major objective of the integrated coastal management (ICM) approach. In the implementation of the Raja Ampat’s COREMAP CTI activities, PKSPL IPB University replicates ICM practices, in Yensawai Village, Raja Ampat Regency. Those include cycle guidelines, structures, and models of ICM implementation at the local government level. The ICM cycle is very important because it provides a gradual and non-negotiable “must” to be able to proceed to the next several steps. The cycle must be done correctly to contribute to continuous improvement. The goal is to have a functioning ICM system to improve local government services and contribute to sustainable development. PKSPL IPB University has successfully demonstrated its effectiveness and impact on the implementation of the ICM program. This can be seen in the increasing adoption of the concept of sustainability in local governments as well as increasing local political commitment to the rehabilitation of sustainable coastal ecosystems in West Yensawai Village, Raja Ampat Regency. The experience of PKSPL IPB University in other ICM pilot sites in implementing ICM integration was replicated in the COREMAP CTI program in West Papua Province. Contribution factors adopted by ICM in local capacity building include: (i) local government involvement; (ii) the leadership role of the coordination mechanism; (iii) key steps of the ICM Cycle process; (iv) vision-led programs; (v) local champions; (vi) visible achievements and impacts; (vii) increased value of integrated planning and management approaches, and local and political commitments.

Regional demographic changes and financial independence of local governments in Korea

Regional disparities in Korea are gradually intensifying, coupled with changes in regional demographic characteristics. Despite the implementation of various policies, progress concerning decentralization and securing the financial independence of local governments have not been very effective. The widening of the gap between the regions is due to changes in the regional populations. This study analyzes policy countermeasures based on the relationship between population changes and the degree of financial independence among regions. We empirically analyzed the influencing factors in the financial independence of the local government using a spatial panel model with a longitudinal approach. The spatial range includes 225 municipal and provincial government units. Our results suggest that demographic characteristics, such as the elderly population ratio, population size, and population growth rate, have diverse relationships with the local government's financial independence. Local governments with a high proportion of the elderly population are likely to face low levels of financial independence and high dependency on central government subsidies. It is important to consider the criteria that exacerbate the financial conditions and sustainability of local governments. Active management and assistance policies from the central government can support those local governments with low financial independence ratios and unstable demographic characteristics.

The Government’s Environmental Attention and the Sustainability of Environmental Protection Expenditure: Evidence from China

Transformation to a green economy depends on long-term, continuous government financial investments in the environmental protection field. This study used the budget and final accounts of provincial environmental protection expenditure in China from 2007 to 2019 to establish a two-way fixed-effects model to verify the impact of government attention on environmental protection expenditure. The sustainability of Chinese local governments’ environmental protection expenditure is weak, and the fluctuations conform to the punctuated equilibrium characteristics. Fluctuations in government attention have a significant positive impact on changes in fiscal environmental protection expenditure, and the characteristics of campaign governance are relatively obvious. Fiscal transparency can strengthen the relationship between government attention and the environmental protection expenditure budget; however, the adjustment effect on the final accounts of environmental protection expenditure, which depend more on the budget implementation process, is not significant. To improve the effectiveness of environmental governance, government departments must pay long-term and sustained attention to environmental issues, improve the transparency of the implementation process of environmental protection expenditure budgets, strengthen the role of public supervision, and ensure investment in environmental governance.

Does the carbon emission rights trading pilot policy aggravate local government fiscal pressure? Evidence from China

The carbon emission rights trading pilot (CERTP) policy is an important measure to promote low-carbon economic development. This pilot policy also affects the entry and survival of enterprises and is thus related to local government fiscal pressure. The objective of this paper is to examine whether the CERTP policy increases local government fiscal pressure. Based on the quasi-natural experiment of China's CERTP policy, using a dataset from 314 prefecture-level cities in China over the period 2005 to 2019, this paper applies the staggered difference-in-differences (DID) model to examine the impact of the CERTP policy on local government fiscal pressure, and further tests the spatial spillover effects and potential mediation mechanisms of this pilot policy. The results indicate that the implementation of the CERTP policy significantly increases local government fiscal pressure, especially in the eastern regions and regions with low economic development levels, which provides further evidence of a causal relationship between the CERTP policy and fiscal pressure. The results of the spatial spillover effects confirm that the implementation of the CERTP policy in neighboring prefecture-level cities would increase local government fiscal pressure in the local region. The results of the mediation mechanism effect reveal that the CERTP policy aggravates local government fiscal pressure by inhibiting the progress of green technology by enterprises, hindering the emergence of new enterprises, and increasing the number of closures of high-carbon emissions enterprises. This paper recommends that when implementing the CERTP policy, it is necessary to weigh the overall impact of the policy, not just its effect on carbon emissions reduction. The fiscal sustainability of local governments cannot be ignored.

Insights from the Field: How North Carolina Local Government Climate Communications Compare to IPCC Guidelines

As climate change increasingly threatens the United States, many local governments are implementing programs in response, helping to reduce their communities' contributions to climate change and enhancing their resilience to climate impacts. The purpose of this study is to understand how local governments in North Carolina communicate with residents about their climate change programming. Twelve local government sustainability employees participated in interviews about how they communicated with and received input from residents about such programs. Interview transcripts were coded and analyzed using Atlas.ti 9, and communications approaches were compared to Intergovernmental Panel on Climate Change (IPCC) recommendations. Participants' communications could be characterized as applying some of the IPCC recommendations, and findings suggest opportunities for greater adoption of IPCC strategies in local government communication about climate programs. The Covid-19 pandemic was primarily described as a barrier to communicating about climate programs but also was credited as creating an opportunity for enhanced connections in one community. Additionally, participants described misconceptions about climate change programming expressed by residents, such as initiatives being perceived as impractical when they were in fact feasible.

A tiered pathway toward sustainability: The role of public administrators in advancing social equity in U.S. local governments

AbstractEquity is a central value for public administration as a field and for the advancement of sustainability, yet it is disproportionately and significantly underrepresented and underprioritized in U.S. local governments' sustainability priorities. Equity is referred to as one of the three essential “Es” in sustainability along with environment and economy. Since the first Minnowbrook Conference held in 1968, advancing social equity has become one of the chief goals of public administration as equity emerged as one of the discipline's four “Es” along with economy, efficiency, and effectiveness. In light of this, to what extent are public administrators' concerns and efforts impactful in embracing and advancing social equity in sustainable development? With ICMA's 2015 Local Government Sustainability Practices Survey, this paper offers a unique understanding of localities' tiered realization of sustainability priorities as well as factors correlated with ascending upwards through the tiered pathway of prioritizing sustainability orientation.

Drivers and risk factors of German local financial sustainability focusing on adjusted income

Analysing the financial sustainability of local governments is of great interest, as they offer a wide range of services and are close to citizens. Various organizations have pointed out the need to analyse the determinants of financial sustainability, and recent research has focused on several European countries, using adjusted income as a dependent variable. To fill the research gap in the context of German local governments, we conduct an empirical analysis with 5 years of data from 363 local governments from North Rhine–Westphalia to analyse the impact of socio-demographic and financial-economic factors on financial sustainability, focusing on the adjusted income. Our results indicate that financial sustainability is influenced by factors on which the local governments have no impact or at least only a limited impact. Specifically, the debt level and the level of population are identified as risk factors, whereas own taxes, rate support grants and the net cash surplus serve as drivers of financial sustainability. Points for practitioners Understanding the determinants of financial sustainability is important for politicians and public managers in order to improve their risk management and decision-making processes and to prevent future sustainability problems. This paper identifies several socio-demographic and financial-economic determinants of FS, on which the local governments have only a limited impact. Considering that the financial sustainability of German local governments in North Rhine–Westphalia largely depends on external factors might be of great interest for policymakers with regard to future financial crises.

Financial Sustainability of Local Governments in Indonesia

This study aims to examine the factors that impact the financial sustainability of local governments in Indonesia. This study used a quantitative method and employed the secondary data processing of the Regional Government Financial Reports (LKPD) for 2018–2020 retrieved from The Audit Board of the Republic of Indonesia (BPK). This study used a saturated sample that included every member of the population, precisely 34 Indonesian provinces. The author used multiple regression analysis of panel data by using Eviews 10. This study employed financial sustainability as the dependent variable, whereas total population, gross regional domestic product (GRDP), and financial independence acted as independent variables. This study concludes that total population and gross regional domestic product have a substantial negative impact on financial sustainability, while financial independence positively affects financial sustainability. This study adds new information about the financial sustainability of Indonesian provincial governments, providing theoretical support that future research can later expand upon. By taking into account variables that may impede or promote financial sustainability in each location, local governments can utilise this research to inform the policies they adopt to manage the finances of their respective regions.

Historical industrial transitions influence local sustainability planning, capability, and performance

We evaluate the influence of long-term industrial transitions on local sustainability action. We construct two aspects of historical industrial transitions—direction and magnitude—along with three aspects of local government sustainability action: planning, capabilities, and performance. Using a national survey of local sustainability practice and nearly five decades of historical manufacturing employment data in the U.S., we find local communities with more substantial swings in manufacturing jobs to be less likely to engage in sustainability planning, cultivate sustainability-related capabilities, and make progress towards meeting sustainability-related objectives, underscoring the potential challenges associated with top-down programs and the importance of decentralized solutions.

A CRITICAL ANALYSIS OF THE IMPACT OF LOCAL GOVERNMENT ADMINISTRATION ON RURAL DEVELOPMENT: A FOCUS ON SELECTED LOCAL GOVERNMENT AREAS IN ONDO STATE, NIGERIA

Local government has served as a springboard for progress in the rural areas. Local government administrations are increasingly recognized as primary agents of rural development and as collaborators with both state and federal governments on rural development projects in progress. This study focused on the agriculture sector in Ondo State to evaluate how local government affects rural and grassroots development. The study used a straightforward survey research methodology, with questionnaire administration, focus group discussions, and interviews as the methods for gathering data. Information was gathered from both primary and secondary sources. In each of the twelve (12) selected villages, questionnaires and Focus Group Discussions (FGD) with 10–15 participants were used to gather the primary data. The FGD is to explore issues related to impact of Agricultural Development Programme on farmers in the twelve (12) selected villages, how local government agricultural extension service has been of help to farmers in the study areas and what are the infrastructures put in place by local government. The secondary data came from a variety of sources, including books, journals, government documents, unpublished materials, and libraries. Using SPSS techniques, the gathered data were quantitatively analysed. In the twelve (12) villages that were chosen for the study, the local government's agricultural development programs had little to no effect on farmers, according to the study, which found no causal link between local government and rural development and social infrastructures. The result obtained on Local Government Agricultural Development Programme on farm infrastructure, farm output, farm asset and technology dimensions showed that the programmes were not well monitored and farmer’s awareness was very poor. Within the study area, there is a very high degree of variation. A drastic shift in policy is necessary to address the issue of gap closing, while the programmes do not target the original farmers. Sustainable local government agricultural development programmes is unlikely to occur without serious attention from the government.