Home> Archive> 2020> Volume 10 Number 1 ( Feb. 2020)
IJSSH 2020 Vol.10(1): 17-21 ISSN: 2010-3646
doi: 10.18178/ijssh.2020.V10.1007

The Effects Study of Government Decentralization, Informal Economy on Carbon Emissions

Rong Zhao and Lixiang Zhao

Abstract—This paper focuses on the effects on the carbon emissions of government decentralization, the informal economy and the interactions in 2007-2017, using static fixed-effects model and dynamic system GMM, and threshold regression methods. The study finds that there is a threshold effect of fiscal decentralization and marketization decentralization, which have a negative impact on carbon emissions. The infomal economic scale and the coefficient of interaction are further indicating that China's carbon emissions are indirectly increased due to the expansion of the informal economy.In the regional study, the impact of fiscal decentralization on carbon emissions is quite different. In the static situation of the eastern and central regions and the dynamic situation in the west, it shows a significant carbon increase effect. The impact of marketization on carbon emissions is greater in the central region than in the east and west.

Index Terms—Government decentralization, informal economy, carbon emission, GMM method.

Rong Zhao and Lixiang Zhao are with the School of Economics and Management, Beijing University of Technology, China (e-mail: 18635000619@163.com, 15647120613@163.com).

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Cite: Rong Zhao and Lixiang Zhao, "The Effects Study of Government Decentralization, Informal Economy on Carbon Emissions," International Journal of Social Science and Humanity vol. 10, no. 1, pp. 17-21, 2020.

Copyright © 2020 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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