Revisiting the nexus between fiscal decentralization and environment: evidence from fiscally decentralized economies.

Fiscal decentralization is a topic of great importance, especially in the context of environmental sustainability. Numerous research studies have been conducted on fiscal decentralization providing conflicting results, and therefore, the current study fills the gap by examining the effect of fiscal decentralization on environmental quality in the presence of environment-related technological innovation, renewable energy consumption, international trade, and economic growth taking seven fiscally decentralized advanced OECD countries as a case study. Using data from 1990 to 2018, we employed the Spatial Durbin Model (SDM) to test the spatial spillover effect of fiscal decentralization on the environment in seven fiscally decentralized countries. The primary findings show that carbon emissions are affected by the associated regions, which significantly correlates with the spatial distribution, and in the short run, fiscal decentralization increases carbon emissions. However, in the long run, fiscal decentralization decreases carbon emissions and is essential for achieving the goals of net-zero carbon emission. The results also show that the indirect effect is significantly positive in the economic-geographical weight matrix, and the spatial spillover effect of fiscal decentralization is not conducive to the environment of countries with economic exchanges. Furthermore, fiscal decentralization has a threshold effect, and the results show that when the fiscal decentralization degree is higher, it significantly reduces CO2 emissions. Any policy in these countries that target renewable energy, fiscal decentralization, and eco-innovation will significantly reduce carbon emissions.

Can Health Human Capital Help the Sub-Saharan Africa Out of the Poverty Trap? An ARDL Model Approach.

This article explores the impact of health human capital on the poverty trap in Sub-Saharan Africa by autoregressive distribution lag model. In the long run, there is no evidence that health human capital can help the Sahara out of the poverty trap. While health human capital has a significant effect on poverty reduction in the short term. There is a threshold effect in the poverty reduction model of healthy human capital. When the economic development level reaches the threshold, the effect of poverty reduction is more obvious and deeper. The extended Solow economic growth model also proved that if the external human capital breaks through the threshold, it can make developing countries get rid of the poverty trap. Therefore, the economic development brought about by health care expenditure must benefit the poor in Sub-Saharan Africa and allow them to enjoy the welfare of social security.