{"title":"Local government competition, fiscal decentralization, and environmental governance efficiency","authors":"Guoyuan Li , Ping Zhou , Rui Wu","doi":"10.1016/j.frl.2025.108537","DOIUrl":null,"url":null,"abstract":"<div><div>This study investigates the impact of local government competition on environmental governance efficiency using a panel dataset of Chinese prefecture-level cities from 2011 to 2022. The baseline regression results indicate that intergovernmental competition significantly enhances environmental governance efficiency. Mediation analysis further reveals that promoting fiscal decentralization serves as an important channel through which local government competition improves environmental outcomes. Moderation analysis confirms that public environmental concern, green total factor energy efficiency, and total factor productivity all strengthen the positive relationship between government competition and environmental governance efficiency. Moreover, heterogeneity analysis shows that the effects of local government competition vary depending on the level of green innovation and economic density across cities.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"86 ","pages":"Article 108537"},"PeriodicalIF":6.9000,"publicationDate":"2025-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Finance Research Letters","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S154461232501791X","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the impact of local government competition on environmental governance efficiency using a panel dataset of Chinese prefecture-level cities from 2011 to 2022. The baseline regression results indicate that intergovernmental competition significantly enhances environmental governance efficiency. Mediation analysis further reveals that promoting fiscal decentralization serves as an important channel through which local government competition improves environmental outcomes. Moderation analysis confirms that public environmental concern, green total factor energy efficiency, and total factor productivity all strengthen the positive relationship between government competition and environmental governance efficiency. Moreover, heterogeneity analysis shows that the effects of local government competition vary depending on the level of green innovation and economic density across cities.
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