1. This article examines the responses of local governments to environmental regulations initiated by the central government.
2. The study uses the opportunity provided by the TCZ policy in China to investigate how local governments respond to an environmental regulation initiated by the central government.
3. The results reveal that tough environmental regulation increases tax rate, but has no impact on local government expenditure.
The article is generally reliable and trustworthy, as it provides a comprehensive overview of the topic and draws on evidence from multiple sources. However, there are some potential biases and one-sided reporting that should be noted. For example, while the article does mention that environmental regulations can have positive effects on health and innovation, it does not explore any potential negative impacts or risks associated with such regulations. Additionally, while the article does discuss how environmental regulations can lead to a decrease in local government revenue, it does not consider other possible sources of revenue for local governments that could offset this loss. Furthermore, while the article discusses how firms may relocate or withdraw from markets due to increased environmental standards, it does not consider any potential benefits that could arise from such relocation or withdrawal (e.g., increased efficiency). Finally, while the article mentions that European countries created specialized agencies in the 1970s to handle environmental issues, it does not provide any information about how these agencies have impacted environmental quality or health outcomes in Europe since then.
In conclusion, this article is generally reliable and trustworthy but there are some potential biases and one-sided reporting which should be noted when considering its content.