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Ecological Fiscal Transfers and State-level Budgetary Spending in India: Analysing The Flypaper Effects in India

Author

Listed:
  • Kaur, Amandeep

    (National Institute of Public Finance and Policy)

  • Mohanty, Ranjan Kumar

    (National Institute of Public Finance and Policy)

  • Chakraborty, Lekha

    (National Istitute of Public Finance and Policy)

  • Rangan, Divy

    (National Institute of Public Finance and Policy)

Abstract

This paper examines the empirical evidence of flypaper effects in the ecological fiscal spending in India. Using the panel data models, we analyse whether the intergovernmental fiscal transfers, or the states' own income determine the expenditure commitments on ecology at the State level. The econometric results show that the intergovernmental fiscal transfers rather than the states' own income determines ecological expenditure at subnational levels in India. The results hold, when the models are controlled for ecological outcomes and demographic variables.

Suggested Citation

  • Kaur, Amandeep & Mohanty, Ranjan Kumar & Chakraborty, Lekha & Rangan, Divy, 2021. "Ecological Fiscal Transfers and State-level Budgetary Spending in India: Analysing The Flypaper Effects in India," Working Papers 21/332, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:21/332
    Note: Working Paper 332, 2021
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    References listed on IDEAS

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    Cited by:

    1. Chakraborty, Lekha, 2021. "Fiscal Federalism, Expenditure Assignments and Gender Equality," Working Papers 21/334, National Institute of Public Finance and Policy.
    2. Pandey, Rita & Gupta, Manish & Sachdeva, Paavani & Singh, Abhishek, 2021. "Financing Biodiversity and Ecosystems Conservation in India: Implications for Efforts and Outcomes," Working Papers 21/335, National Institute of Public Finance and Policy.
    3. Chakraborty, Lekha, 2021. "Mainstreaming Climate Change Commitments through Finance Commission's Recommendations," Working Papers 21/341, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Intergovernmental Transfers ; Flypaper effect ; Environmental Economics ; Macroeconomic Policy ; National Government Expenditure;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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