ORIGINAL RESEARCH article
Front. Environ. Sci.
Sec. Environmental Economics and Management
Volume 13 - 2025 | doi: 10.3389/fenvs.2025.1600303
Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
Provisionally accepted
- 1Hasan Kalyoncu University, Gaziantep, Gaziantep, Türkiye
- 2Near East University, Nicosia, Cyprus
- 3Business School, North-West University, Potchefstroom, North West, South Africa
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This study elucidates how fiscal decentralization affects environmental sustainability, moderating the role of environmental policy stringency in the selected European Union (EU) countries between 1995 and 2020. In addition, economic upturn, import diversification, and environmental protection expenditures are utilized as control variables. The empirical findings of the Method of the Moments Quantile Regression (MMQR) disclosed that the environmental policy stringency and environmental protection expenditures help the EU achieve ecological priorities. In addition, import diversification also spurs environmental sustainability, with more substantial impacts on less energy and carbon-efficient nations. Furthermore, the MMQR outcomes divulged that fiscal decentralization (all indicators) endorsed the environmental deterioration of EU members, undermining the achievement of ecological urgencies. Nonetheless, via the means of environmental policy stringency, fiscal decentralization positively influences environmental sustainability. These findings unveil that the harmful impact of fiscal decentralization on environmental sustainability can be curtailed if EU members impose more stringent environmental policies. Herein, to fulfil the targets of Sustainable Development Goals (SDGs), in particular, SDG7 and SDG13, EU members should consolidate fiscal decentralization initiatives and environmental policy stringency to ensure the achievement of ecological priorities.
Keywords: Environmental policy stringency, Ecological priorities, Fiscal decentralization, Environmental protection expenditures, European Union
Received: 27 Mar 2025; Accepted: 19 May 2025.
Copyright: © 2025 Satrovic, Somoye, Olaleye and Lekunze. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Banji Rildwan Olaleye, Business School, North-West University, Potchefstroom, 2520, North West, South Africa
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