Fiscal decentralization and pollution : institutions matter

Mohammad Reza Farzanegan and Tim Mennel

We estimate the impact of fiscal decentralization on different indicators of pollution for more than 80 countries from 1970 to 2000. Our cross country estimates show that fiscal decentralization increases pollution. However, higher quality of institutions can limit the destructive environmental effects of decentralization. The empirical results confirm a strand of the literature on decentralization that predicts a "race to the bottom" under federalism. The mitigating effect of good governance can be explained by relative preferences of local and central governments for environmental quality. -- decentralization ; pollution ; environmental quality ; institutions

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Year of publication:	2012
Authors:	Farzanegan, Mohammad Reza ; Mennel, Tim
Publisher:	Marburg : Univ., Dep. of Business Administration & Economics
Subject:	Finanzbeziehungen \| Fiscal relations \| Dezentralisierung \| Decentralization \| Umweltbelastung \| Pollution \| Standortwettbewerb \| Territorial competition \| Good Governance \| Good governance \| Schätzung \| Estimation \| Welt \| World \| 1970-2000

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Extent:	Online-Ressource (PDF-Datei: 28 S., 645,62 KB) graph. Darst.
Series:	Joint discussion paper series in economics : publ. by the Universities of Aachen, Gießen, Göttingen, Kassel, Marburg, Siegen. - Marburg : Philipps University Marburg, Department of Business Administration & Economics, ISSN 1867-3678, ZDB-ID 2499212-4. - Vol. 22-2012
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen : Acrobat Reader
Other identifiers:	hdl:10419/73071 [Handle]
Classification:	C21 - Cross-Sectional Models; Spatial Models ; H11 - Structure, Scope, and Performance of Government ; H72 - State and Local Budget and Expenditures ; Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste ; Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009534026