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Effects of Government Behavior on Chinese Environment

Author: LiDaZuo
Tutor: XieXiaoYan
School: Southwestern University of Finance and Economics
Course: Statistics
Keywords: Environmental pollution Local Government Behavior Spatial Panel Data Model Quantile panel data model
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 96
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Abstract

Pollution reduction, environmental protection related to global and long-term development of China's modernization is now become the focus of widespread concern of the central government and the community. Background With China's reform and opening up, especially the rapid development of the economy in the late 1990s, largely by the factor inputs and the expense of the environment driven, environment and economy increasingly acute contradictions, has become a constraining China's economic continued growth in the outstanding problems. , Emphasized the of corporate pollution reduction and environmental protection is an old topic, its importance and necessity of self-evident. Extensive economic growth at the expense of the environment must be difficult to sustain. But the problem is still increasingly serious environmental pollution problems. Therefore clarify the problem of environmental pollution in China behind the deep-seated logic to find out the root cause of a valuable theoretical and practical significance. Environmental pollution problems are more concentrated in environmental pollution and per capita income of Environmental Kuznets Curve experience analysis and open economy under the conditions of Foreign Trade on China's environmental impact and economic factors such as analysis, and domestic environmental pollution problems from the perspective of institutional factors only a handful of the research literature. Despite the huge impact of economic factors on the quality of the environment, but economic factors are not independent of the system or national policies play a role, in other words, the government's policy making role of environmental control preferences can not be ignored. Although the problem of environmental pollution in China has historical reasons, the industrialization and urbanization of China is in rapid development stage, but the extensive economic growth mode of high pollution and high emissions of pollution problems is undoubtedly not shirk its responsibility. Such serious damage to the ecological environment growth patterns are closely related with the behavior of the local government and its policies supply. This paper discusses the theory of local government behavior, based on the theoretical study of the foreign government action, combined with the actual situation in China, and analyze the behavior of local governments for the mechanism of the effects of environmental pollution, and further departure from the social welfare function to obtain the following proposition: local government and the co-operation of the enterprise, so that the social pollution levels deviate from the socially optimal level. Government-enterprise cooperation led to the government's administrative inefficiency, administrative omission pollution behavior of enterprises in the region, polluting enterprises the right to the use of environmental resources at relatively low prices. In the case of private marginal cost is equal to the marginal social cost, the actual level of pollution will be greater than the optimal level of pollution. Next, based on the theoretical analysis, government rent-seeking, fiscal deficits and fiscal decentralization as to reflect the indicators of government behavior. Combined with the previous theory elaborated from the point of view of local government behavior as yet to be proven hypothesis: (1) Fiscal Decentralization positive influence on the degree of contamination of the local produce. (2) local budget deficit higher the level, the more serious local pollution levels. (3) The local government rent-seeking deeper the level of corruption in the more serious local pollution levels. An empirical study of the theoretical model, the paper selected fixed effects spatial panel data model and quantile fixed effects panel data model two more cutting-edge measurement methods. In order to lay the groundwork to below empirical research, it is necessary to briefly introduce the model form, assumptions and modeling idea. Briefly introduces the spatial error fixed effects panel data model and spatial autoregressive form of the model set of fixed effects panel data model and estimation methods. Then introduced based on the Lagrange multiplier test (LM Test) principle Space Model --- space error correlation Lagrange multiplier test, spatial correlation test space residuals from the regression effect exists, space from the effect of reunification Lagrangian by sub-test and spatial error correlation between the presence of space from the examination of the effect of reunification inspection principles and decision rules. Finally, a brief description on the the Quantile Regression principle and fixed effects quantile panel data model. In the empirical research, the paper selected provinces over the per capita volume of industrial wastewater, industrial emissions per capita, per capita industrial solid emissions as a reflection of the indicators of environmental pollution, government rent-seeking, fiscal deficits and fiscal decentralization as a reflection of government action indicators, per capita income, its square and the industrial structure as control variables. First of all ordinary panel data model for the study of the starting point for data analysis. Hausman test indicates that the fixed effects panel data model is a reasonable model form. Next, from the lack of common panel data model, the further spatial econometric analysis. The first step in this study, taking into account the environmental pollution problems, from experience, space environmental pollution occurs mainly in areas geographically close to, the choice of the Rock Rules set spatial weight matrix W. The second step, the data described above four Lagrange multiplier test of the effect of space to explore the spatial variables introduced reasonable and necessary. Conclusion: environmental pollution emissions with a spatial correlation, spatial econometric analysis is meaningful. The third step, create a the spatial autoregressive fixed effects panel data model and space residuals from the regression fixed effects panel data model, combined with the results of model fitting, spatial error fixed effects panel data model is a reasonable space model. And the interpretation and analysis of spatial error fixed effects panel data model. The empirical results support the hypothesis that before. Finally, in order to explore the quantile level for the different levels of pollution, changes and laws of various factors on the impact of the pollution emissions, the fixed effects panel data quantile regression model, the per capita volume of industrial wastewater, industrial emissions per capita emissions per capita industrial solid emissions of explanatory variables to fit the data, by means of the quantile regression techniques, calculated in the explanatory variables 0.1,0.15, ..., 0.9 Total 17 quantile level influencing factors coefficient, and draw the graph. The results further support the point of view of this paper, and found that: (1) \under the influence is small, while in the high-bit level, its influence will decline. (2) the level of fiscal deficit and the extent of the fiscal decentralization \changes in the level of sub-bit coefficient values ??is very small. Tertile level of the coefficient and the level of high-bit coefficient. From the the tertile level to score-digit level between the coefficients a clear upward trend. (3) For the purposes of the industrial structure, with the increase in the level of sub-bit coefficient showed a clear downward trend. Be seen, as the level of environmental pollution intensifies, the industrial structure of economic factors such as the degree of influence will gradually weaken, and contact above the \factors are reduced accordingly. In the last part of this paper, given the conclusions of this study: Fundamentally speaking, the environmental quality problems behind the existence of local government incentives. Standing in the perspective of local government behavior, reduce environmental pollution, the key is to change the incentives of local governments only GDP mode. And the corresponding policy recommendations. The innovation of this paper is to: (1) from the unique perspective of the behavior of local governments for the cause of the problem of environmental pollution in China were analyzed to explore the impact of environmental quality problems behind local government incentives. (2) to consider the spatial correlation of environmental pollution, the use of spatial panel data model to an empirical study of the problem of environmental pollution in China. (3) using fixed effects quantile panel data model to further explore the trends and laws of the various factors affect the strength of the different sub-bit level explanatory variables. It follows that some meaningful conclusions. On the basis of the conclusions of the empirical analysis presented in this paper related countermeasures to solve our environmental problems and policy recommendations.

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