Environmental Regulation,Land Finance and Pollution——Based on A Game Model Analysis and an Empirical Study on Chinese-Style Decentralization

Abstract

With a complete information dynamic game model and from the perspective of Chinese – style decentralization,this paper analyzes the pollution effects of land finance and effects of environment regulation. An empirical study is conducted with the inter-province panel data in China from 2000 to 2011 by means of a dynamic panel econometric model and the systematic GMM method. The result shows that the expansion of land finance directly intensifies pollution; loose environment regulation stimulates the scale of land fiance,which creates a negative effect on environment. Economic growth,urbanization,energy efficiency and economic openness could also be pollution factors.