Efficiency Evaluation and Influencing Factors of Government Financial Expenditure on Environmental Protection: An SBM Super-efficiency Model Based on Undesired Outputs
Su Jialu
School of Management, Jiangsu University, Zhenjiang 212013, P.R. China (China)
https://orcid.org/0000-0002-2231-3273
Ma Zhiqiang
School of Management, Jiangsu University, Zhenjiang 212013, P.R. China (China)
https://orcid.org/0000-0002-6492-0733
Li Mingxing
mingxingli6@163.comSchool of Management, Jiangsu University, Zhenjiang 212013, P.R. China (China)
https://orcid.org/0000-0002-4039-5997
Fredrick Oteng Agyeman
School of Management, Jiangsu University, Zhenjiang 212013, P.R. China (China)
https://orcid.org/0000-0003-4615-2555
Zhu Yue
School of Management, Jiangsu University, Zhenjiang 212013, P.R. China (China)
https://orcid.org/0000-0002-2111-8580
Abstract
In recent years, the adoption of the precise approach for coordinating socio-economic growth and environmental protection to attain sustainable development has become an urgent challenge to be addressed in China. The current development of environmental governance and the efficiency of government financial expenditure on environmental protection (EPEE) deserves enormous attention. With the aid of the provincial panel data, this study emphasized on the use of the SBM super-efficiency model based on unexpected output to quantify the efficiency of China’s government expenditure on environmental protection from 2013-2018 and constructed the Ordinary Least Squares (OLS) regression model to investigate the influencing factors of the government expenditure on environmental protection. The results of the efficiency measurement portray that the aggregate EPEE in China is unsatisfactory. The efficiency value for the western region is greater than that of the central and eastern regions, while the values obtained from the eastern region are above that of the central region. Population size and urbanization level have negative implications on the efficiency value, while the regional economic development level positively promotes the efficiency of the government expenditure on environmental protection. Finally, the corresponding countermeasures and suggestions for policy implementation are outlined accordingly.
Keywords:
the efficiency of government expenditure on environmental protection, unexpected output, SBM super-efficiency model, influence factorReferences
AGUILAR-HERNANDEZ G.A., DIAS RODRIGUES J.F., TUKKER A., 2021, Macroeconomic, social and environmental impacts of a circular economy up to 2050: A meta-analysis of prospective studies, Journal of Cleaner Production, 278, https://doi.org/10.1016/j.jclepro.2020.123421.
DOI: https://doi.org/10.1016/j.jclepro.2020.123421
Google Scholar
AHN T., CHARNES A., COOPER W.W., 1988, Some statistical and DEA evaluations of relative efficiencies of public and private institutions of higher learning, Socio-Economic Planning Sciences, 22(6): 259-269, https://doi.org/10.1016/0038-0121(88)90008-0
DOI: https://doi.org/10.1016/0038-0121(88)90008-0
Google Scholar
AMANKWAH-AMOAH J., SYLLIAS J., 2020, Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework, Business Strategy and the Environment, 29(1): 240-249, https://doi.org/10.1002/bse.2361.
DOI: https://doi.org/10.1002/bse.2361
Google Scholar
BIAO T.Q.W., 2012, Empirical Study on the Local Government’s Financial Expenditure Efficiency and Its Influence Factors in China, Journal of Financial Research, 2.
Google Scholar
CHARNES A., COOPER W.W., RHODES E., 1978, Measuring the efficiency of decision making units, European Journal of Operational Research, 2(6):429-444.
DOI: https://doi.org/10.1016/0377-2217(78)90138-8
Google Scholar
CHENG C.; CHEN Z., 2017, Analysis of the efficiency of provincial governments’ financial expenditure on environmental protection and its influencing factors, Statistics and Decision Making. 13: 130-132.
Google Scholar
CHENG G., 2014, Data envelopment analysis: methods and MaxDEA software, Intellectual Property Pub: Beijing, China.
Google Scholar
DASGUPTA S., LAPLANTE B., WANG H., WHEELER D., 2002, Confronting the environmental Kuznets curve, Journal of Economic Perspectives, 16(1): 147-168.
DOI: https://doi.org/10.1257/0895330027157
Google Scholar
FARRELL M. J, 1957, The Measurement of Productive Efficiency, Journal of the Royal Statistical Society. Series A (General), 120(3): 253-290.
DOI: https://doi.org/10.2307/2343100
Google Scholar
GUO Q., ZHOU M., LIU N., WANG Y., 2019, Spatial effects of environmental regulation and green credits on green technology innovation under lowcarbon economy background conditions, International Journal of Environmental Research and Public Health, 16(17): 3027.
DOI: https://doi.org/10.3390/ijerph16173027
Google Scholar
HALKOS G.E., PAIZANOS E.Α., 2013, The effect of government expenditure on the environment: An empirical investigation, Ecological Economics, 91: 48-56.
DOI: https://doi.org/10.1016/j.ecolecon.2013.04.002
Google Scholar
HONGGUO Y., 2015, Fiscal self-sufficiency environmental protection tax and fee allocation and local government environmental protection expenditure efficiency-an empirical analysis based on DEA-Tobit panel model, Research of Finance and Accounting, 10: 14-18.
Google Scholar
HUANG G., 2011, Research on the efficiency of local government finance for environmental protection, Journal of Guangxi University for Nationalities (Philosophy and Social Science), 33(06): 161-164.
Google Scholar
KRAJEWSKI P., 2016, The impact of public environmental protection expenditure on economic growth, Problemy Ekorozwoju/ Problems of Sustainable Development, 11(2): 99-104.
Google Scholar
KUAI P., YANG S., TAO A., ZHANG S., KHAN Z.D., 2019, Environmental effects of Chinese-style fiscal decentralization and the sustainability implications, Journal of Cleaner Production, 239:118089, https://doi.org/10.1016/j.jclepro.2019.118089.
DOI: https://doi.org/10.1016/j.jclepro.2019.118089
Google Scholar
PETROVIĆ P., LOBANOV, M.M., 2020, The impact of R&D expenditures on CO2 emissions: Evidence from sixteen OECD countries, Journal of Cleaner Production, 248, https://doi.org/10.1016/j.jclepro.2019.119187.
DOI: https://doi.org/10.1016/j.jclepro.2019.119187
Google Scholar
SIEBERT H., SIEBERT H., 1998, Environmental Quality as a Public Good, Economics of the Environment: 59-93, https://doi.org/10.1007/978-3-662-11594-7_5.
DOI: https://doi.org/10.1007/978-3-662-11594-7_5
Google Scholar
SUN K., SUN L., 2016, Research on the efficiency of fiscal environmental protection expenditure based on input-output ratio - DEA-Tobit analysis based on panel data of prefecture-level cities in Jilin province, Taxation and Economy, 05:101-610.
Google Scholar
TONE K., 2001, A slacks-based measure of efficiency in data envelopment analysis, European Journal of Operational Research, 130(3): 498-509.
DOI: https://doi.org/10.1016/S0377-2217(99)00407-5
Google Scholar
TONE K., 2002, A Slacks-Based Measure of SuperEfficiency in Data Envelopment Analysis, European Journal of Operational Research, 143: 32-41, https://doi.org/10.1016/S0377-2217(01)00324-1.
DOI: https://doi.org/10.1016/S0377-2217(01)00324-1
Google Scholar
WANG B.; LIU J.A., 2011, Study on the Efficiency Evaluation of Financial Expenditure on Environmental Management in Chinese Local Cities, Journal of Guangxi University for Nationalities (Philosophy and Social Science), 18(4): 71-76.
Google Scholar
WANG Q., LI C., 2018, Study on the Efficiency Evaluation and Influencing Factors of China’s Fiscal Environmental Protection Expenditure. East China Economic Management, Sustainable Cities and Society, 32(07), p. 102-109.
Google Scholar
WANG P., 2018, Analysis of the efficiency of public environmental expenditure based on data envelopment analysis (DEA)-Tobit model: evidence from Central China, Nature Environment and Pollution Technology, 17(1): 43-48.
Google Scholar
XU M., HU W.Q., 2020, A research on coordination between economy, society and environment in China: A case study of Jiangsu, Journal of Cleaner Production, 258: 120641, https://doi.org/10.1016/j.jclepro.2020.120641.
DOI: https://doi.org/10.1016/j.jclepro.2020.120641
Google Scholar
YONGBIN G., 2015, Efficiency evaluation of China’s local government environmental protection expenditure based on DEA model, Journal of Chongqing Normal University (Edition of Social Sciences), 4: 73-80.
Google Scholar
ZAFAR M.W., SHAHBAZ M., HOU F., SINHA A., 2019, From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries, Journal of Cleaner Production, 212: 1166-1178, https://doi.org/10.1016/j.jclepro.2018.12.081.
DOI: https://doi.org/10.1016/j.jclepro.2018.12.081
Google Scholar
ZHANG J., QU Y., ZHANG Y., LI X., MIAO X., 2019, Effects of FDI on the efficiency of government expenditure on environmental protection under fiscal decentralization: a spatial econometric analysis for China, International Journal of Environmental Research and Public Health, 16(14): 2496.
DOI: https://doi.org/10.3390/ijerph16142496
Google Scholar
ZHAO J., LI S., WANG J., 2020, Evaluation of the utilization efficiency of financial environmental protection funds in China: A win-win perspective of economy and environment, Economic and Management Research, 41(01): 21-35.
Google Scholar
ZHU H., FU Q., WEI Q., 2014, Calculation of efficiency on environmental expenditure and study on influential factors, China Popul. Res. Environ, 24:91-96.
Google Scholar
Authors
Su JialuSchool of Management, Jiangsu University, Zhenjiang 212013, P.R. China China
https://orcid.org/0000-0002-2231-3273
Authors
Ma ZhiqiangSchool of Management, Jiangsu University, Zhenjiang 212013, P.R. China China
https://orcid.org/0000-0002-6492-0733
Authors
Li Mingxingmingxingli6@163.com
School of Management, Jiangsu University, Zhenjiang 212013, P.R. China China
https://orcid.org/0000-0002-4039-5997
Authors
Fredrick Oteng AgyemanSchool of Management, Jiangsu University, Zhenjiang 212013, P.R. China China
https://orcid.org/0000-0003-4615-2555
Authors
Zhu YueSchool of Management, Jiangsu University, Zhenjiang 212013, P.R. China China
https://orcid.org/0000-0002-2111-8580
Statistics
Abstract views: 125PDF downloads: 25
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.