The land finance and eco-product value nexus: Evidence from fiscal decentralization in China

This study aimed to shed new light on the land finance and eco-product value nexus from the perspective of fiscal decentralization, using data collected from 276 Chinese prefectures between 2005 and 2020. We employed a two-way fixed effects model to explore land finance, fiscal decentralization, and the eco-product value nexus. Our findings revealed that land finance has a noticeable disincentive influence on eco-product value. The impact of land finance on the ecological value of wetlands is much higher than on that of other land types. Additionally, fiscal expenditure decentralization plays a negative regulatory role between land finance and eco-product value. This effect is further strengthened with an increase in the fiscal decentralization level. Our findings suggest that standardizing local government land-granting behavior and making land finance more ecologically friendly through policy implementation will effectively contribute to the sustainable development of China.