Local Government’s Fiscal Revenue Targets and Enterprise Carbon Emissions: Evidence from China

Within the behavioral framework of Chinese local government officials, the establishment and pursuit of ambitious fiscal revenue targets emerge as both a potent instrument and a prerequisite for realizing political aspirations. This study investigates the influence of fiscal revenue targets on corporate carbon emissions. Our findings indicate that elevating the threshold of fiscal revenue targets significantly curtails enterprise carbon emissions. This effect is manifested through heightened corporate expenditure on pollution charges and increased levels of green innovation. Our research furnishes valuable insights for carbon governance by fiscal revenue target management in developing nations.