The contribution of tax expenditure in fiscal consolidation in post-crisis economies: a case study of the context in Portugal

In this research, we analyse the use of fiscal expenditure as an instrument of fiscal consolidation policy. Portugal was subject to the financial assistance programme (PAEF) articulated with the IMF, the European Commission and the European Central Bank between 2010 and 2014. The objective is to analyse the evolution of fiscal expenditure in the following four years, after the end of that term programme, that is, between 2015-2018. The outcome is to know if the policy of reducing fiscal expenditure implemented in the years in which the programme was in force (2010-2014), continued into the following four years. We compared this evolution with the evolution of direct expenditure, based on two main axes: economic expenditure and social expenditure. The data collection technique is used through document research, and the data obtained was from information provided by national, European statistical authorities and secondary sources of information. It is concluded that, in the 2014-2018 period, the increase in public revenue, due to the decrease in tax expenditure, did not evolve consistently. In 2014-2018, direct public expenditure did not follow the same pattern as in the previous years of 2011-2014, given the functional equivalence of the two types of expenditure. Finally, to observe the relationship between the level of fiscal consolidation, carried out between the years 2010 and 2018, and the behaviour of tax revenue and expenditure, the Scheffé test was performed on the averages of the variables Total Revenue and Expenditure, and Tax Revenue and Expenditure. This was applied in order to observe if the averages of the variables are significantly relevant for the level of fiscal consolidation or if there are other variables, equally important, that were not taken into account in the study, but that had a preponderant role (such as the economic context). We have to statistically conclude that both the revenue and expenditure averages and the percentage averages are not all equal, as they are, in fact, all different between the groups analysed. In order to clarify if the differences in revenue and expenditure and in the respective percentages are statistically significant or if, on the contrary, they are merely eventual, we previously verified their applicability through the assumptions of normality and homoscedasticity of each of the data sets, using the ANOVA test (Fisher, 1918). We observed that for both the amounts of revenue and expenditure, as well as the percentages, the p-value observed in the ANOVA test was equal to 0.000 (i.e. less than 0.050), implying the rejection of the null hypotheses and the acceptance of the alternative hypotheses, according to which the average values of the amounts of revenue and expenditure, and the average values of the percentages are not all equal. The general conclusion is that there was budget consolidation, but this must have been due to other factors, such as the economic environment, since there is no direct relationship between revenue, fiscal expenditure and budget consolidation in any of the periods studied.

How Does Sustainable Rural Tourism Cause Rural Community Development?

Rural tourism has been developing vigorously, and rural community functions are becoming diversified in China. Therefore, this paper takes China as an example to explore how sustainable rural tourism affects rural community development in the long and short run over the period 1994–2020. Sustainable rural tourism can be measured using two indicators: total rural tourism revenue and number of rural tourists. Rural community development is measured by the number of rural community service institutions. Then, by incorporating other variables and using the autoregressive distributed lag bounds co-integration technique to perform an empirical analysis, we found that, whether in the long or short run, sustainable rural tourism always plays a positive and significant role in promoting rural community development. In particular, in the long run, rural infrastructure construction, rural ecological environment, agricultural fiscal expenditure, agricultural technological progress, and rural human capital are identified as the major forces behind rural community development. Meanwhile, in the short run, rural infrastructure construction, rural ecological environment, agricultural fiscal expenditure, agricultural technological progress, and rural human capital are also major drivers of rural community development. This paper contributes to the current literature by filling in the existing gaps in several aspects.

Research on the Efficiency of China’s Fiscal Expenditure Structure under the Goal of Inclusive Green Growth

Inclusive Green Growth is a sustainable development mode that pays attention to the coordinated growth of the economy, society, and ecology. With the intensification of the contradiction between fiscal revenue and expenditure, adopting the goal of adjusting the fiscal expenditure structure is conducive to improving the efficiency of fiscal funds. This paper establishes a theoretical model of the efficiency of the fiscal expenditure structure under the goal of Inclusive Green Growth, and on this basis, it constructs an index system of Inclusive Green Growth. Then, it applies a DEA-Malmquist model to analyze the efficiency of the fiscal expenditure structure. The results show that from 2007 to 2018, the growth rate of Inclusive Green Growth index showed a downward trend, which was mainly due to the decline in the growth rate of economic development. It rebounded after 2016, and the growth of the inclusiveness level played a major role. In time and space, the development resources tend to the unbalanced development trend of the eastern region; the average total factor productivity of the fiscal expenditure structure in space is the lowest in the east. The fiscal expenditure should be inclined to social expenditure and green expenditure, the western region should be inclined to economic expenditure, and the allocation of the expenditure structure in the central region should imitate the high-efficiency areas. In order to achieve the comprehensive development goal, this paper provides an analytical idea for the adjustment of the fiscal expenditure structure.

Assessing the impact of mechanism of green public consumption policy on environmental equity: evidence from China

This study investigates the impact of the mechanism of green public consumption policy on environmental equity and provides a feasible reference for the rational formulation of corresponding policies for China. Establish a mediation effect model using the stepwise regression and bootstrap analysis method, this study explores the direct and indirect effects of fiscal expenditure intensity on environmental equity. The results revealed that increasing fiscal expenditure on energy conservation and environmental protection cannot directly and significantly affect environmental equity, but it has a significant indirect positive impact on environmental equality through fiscal decentralization. It is also found that the impact of green public consumption policy on environmental equity varies in the eastern, central and western parts of China. Our findings indicated that the expenditure of energy conservation and environmental protection indirectly affects environmental equity through fiscal decentralization. The willingness of the government to protect the environment regulates the impact of green public consumption policies on environmental equity. The phenomenon of feeding the east from the west of resources and environment is obvious. According to the characteristics of regional development, we should formulate energy conservation and environmental protection policies and adjust the direction of policies to promote regional environmental equity.

Spatiotemporal Evolution and Influencing Factors of China’s Agricultural Environmental Efficiency

Taking the 30 Chinese provinces in 2000–2018 as the objects, this paper measures their agricultural environmental efficiencies (AEEs) with slack-based measure (SBM) containing an undesired output. Then, the features of the spatiotemporal evolution of AEE in China were explored on ArcGIS, and the factors affecting the AEE were analyzed with a geodetector. The results show that there is a huge provincial gap in AEE across China; most provinces with a high AEE belong to eastern coastal region, while most inland provinces had a relatively low AEE. Except for a few years, the AEEs in eastern, central, and western regions changed very slightly, and the eastern region had a higher AEE level than central and western regions. The results of spatiotemporal evolution show that, with the elapse of time, the high-AEE provinces gradually shifted to the inland; the AEE trend varied from province to province; the provinces were highly polarized in terms of AEE. The AEE is mainly affected by the following factors: fiscal expenditure, fertilizer intensity, pesticide intensity, and economic growth.