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Fiscal expenditures on science and technology and environmental pollution: evidence from China

  • Wanfang Xiong
    ,
  • Yan Han
    ,
  • James Crabbe
    ,
  • Xiao-Guang Yue
Research Output: Contribution to journal Article Peer-review

Open access

Sustainable Development Goals

  • SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities
  • SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production

Abstract

Studying the driving factors of environmental pollution is of great importance for China. Previous literature mainly focused on the cause of national aggregate emission changes. However, research about the effect of fiscal expenditures on science and technology (FESTs) on environmental pollution is rare. Considering the large gap among cities in China, it is necessary to investigate whether and how FESTs affect environmental pollution among cities. We adopted three kinds of typical environmental pollutants including sulfur dioxide (SO2) emissions, wastewater emission, and atmospheric particulate matter less than 2.5 micrometers in diameter (PM2.5). Using the data of 260 prefecture-level cities over ten years in China, we found that FESTs play a significantly positive role in reducing sulfur dioxide (SO2) emissions and PM2.5 concentrations, but fail to alleviate wastewater emissions. Specifically, for every 1% increase in FESTs, SO2 emissions were reduced by 5.317% and PM2.5 concentrations were reduced by 5.329%. Furthermore, we found that FESTs reduced environmental pollution by impeding fixed asset investments and by promoting research and development activities (R&D). Moreover, the impacts of FESTs on environmental pollution varied across regions and sub-periods. Our results are robust to a series of additional checks, including alternative econometric specifications, generalized method of moments (GMM) analysis and overcoming potential endogeneity with an instrumental variable. Our findings confirm that government efforts can be effective on pollution control in China. Hence, all governments should pay more attention to FESTs for sustainable development and environmental quality improvements.

Publication Information

Output type

Research Output: Contribution to journal Article Peer-review

Original language

English

Pages from-to (Number of pages)

Pages 8761-8781

Journal (Volume, Issue Number)

International Journal of Environmental Research and Public Health (Volume 17)

Publication milestones

  • Accepted/In press - 19/11/2020
  • Published - 25/11/2020

Publication status

Published - 25/11/2020

External Publication IDs

  • handle.net: 10547/624698
  • Scopus: 85096539759

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