In this study, we examine how government debt responds to environmental policies when governments are endowed with inadequately supervised fiscal flexibility. We find that a strengthening of environmental policy worsened the local economy and encouraged Chinese local governments to increase the...

In this study, we examine how government debt responds to environmental policies when governments are endowed with inadequately supervised fiscal flexibility. We find that a strengthening of environmental policy worsened the local economy and encouraged Chinese local governments to increase the...

In this study, we examine whether and how the responses of local governments to the central government’s environmental policies impact the cost-effectiveness of those policies when local governments are endowed with inadequately supervised fiscal flexibility. We find that a strengthening of...