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Local Government’s Fiscal Revenue Targets and Enterprise Carbon Emissions: Evidence from China

Author

Listed:
  • LUJUN WANG

    (Nanjing University of Finance and Economics)

  • YUYANG JI

    (Nanjing University of Finance and Economics)

  • YONGMIN LUO

    (Nanjing University of Finance and Economics)

Abstract

Within the behavioral framework of Chinese local government officials, the establishment and pursuit of ambitious fiscal revenue targets emerge as both a potent instrument and a prerequisite for realizing political aspirations. This study investigates the influence of fiscal revenue targets on corporate carbon emissions. Our findings indicate that elevating the threshold of fiscal revenue targets significantly curtails enterprise carbon emissions. This effect is manifested through heightened corporate expenditure on pollution charges and increased levels of green innovation. Our research furnishes valuable insights for carbon governance by fiscal revenue target management in developing nations.

Suggested Citation

  • Lujun Wang & Yuyang Ji & Yongmin Luo, 2025. "Local Government’s Fiscal Revenue Targets and Enterprise Carbon Emissions: Evidence from China," Hacienda Pública Española / Review of Public Economics, IEF, vol. 252(1), pages 3-28, March.
  • Handle: RePEc:hpe:journl:y:2025:v:252:i:1:p:3-28
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal revenue target; Carbon emissions; Green innovation;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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