This paper studies the environmental pollution and its impacts in China using prefecture-level cities and municipalities data. Moran’sI, the widely used spatial autocorrelation index, provides a fairly strong pattern of spatial clustering of environmental pollution and suggests a fairly high stability of the positive spatial correlation. To investigate the driving forces of environmental pollution and explore the relationship between fiscal decentralization, economic growth, and environmental pollution, spatial Durbin model is used for this analysis. The result shows that fiscal decentralization of local unit plays a significant role in promoting the environmental pollution and the feedback effect of fiscal decentralization on environmental pollution is also positive, though it is not significant. The relationship of GDP per capita and environmental pollution shows inverted U-shaped curve. Due to the scale effect of secondary industry, the higher the level of secondary industry development in a unit is, the easier it is to attract the secondary industry in adjacent units, which mitigates the environmental pollution in adjacent units. Densely populated areas tend to deteriorate local environment, but environmental regulation in densely populated areas is often tighter than other areas, which reduces environmental pollution to a certain extent.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.