Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union

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 expen...

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Main Authors: Elma Satrovic, Oluwatoyin Abidemi Somoye, Banji Rildwan Olaleye, Joseph Nembo Lekunze
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-06-01
Series:Frontiers in Environmental Science
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Online Access:https://www.frontiersin.org/articles/10.3389/fenvs.2025.1600303/full
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author Elma Satrovic
Oluwatoyin Abidemi Somoye
Banji Rildwan Olaleye
Joseph Nembo Lekunze
author_facet Elma Satrovic
Oluwatoyin Abidemi Somoye
Banji Rildwan Olaleye
Joseph Nembo Lekunze
author_sort Elma Satrovic
collection DOAJ
description 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.
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spelling doaj-art-8a42198d1a9e460e9efdf180b869eba32025-08-20T03:18:30ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2025-06-011310.3389/fenvs.2025.16003031600303Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European UnionElma Satrovic0Oluwatoyin Abidemi Somoye1Banji Rildwan Olaleye2Joseph Nembo Lekunze3Department of International Trade and Logistics, Faculty of Economics, Administrative and Social Sciences, Hasan Kalyoncu University, Gaziantep, TürkiyeDepartment of Economics, Faculty of Economics and Administrative Sciences, Near East University, Nicosia, Mersin, TürkiyeNorth-West University Business School, Potchefstroom, South AfricaNorth-West University Business School, Potchefstroom, South AfricaThis 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.https://www.frontiersin.org/articles/10.3389/fenvs.2025.1600303/fullenvironmental policy stringencyecological prioritiesfiscal decentralizationenvironmental protection expendituresEuropean Union
spellingShingle Elma Satrovic
Oluwatoyin Abidemi Somoye
Banji Rildwan Olaleye
Joseph Nembo Lekunze
Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
Frontiers in Environmental Science
environmental policy stringency
ecological priorities
fiscal decentralization
environmental protection expenditures
European Union
title Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
title_full Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
title_fullStr Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
title_full_unstemmed Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
title_short Reconciling fiscal decentralization, environmental protection expenditures, and stringent regulations with the ecological priorities of the European Union
title_sort reconciling fiscal decentralization environmental protection expenditures and stringent regulations with the ecological priorities of the european union
topic environmental policy stringency
ecological priorities
fiscal decentralization
environmental protection expenditures
European Union
url https://www.frontiersin.org/articles/10.3389/fenvs.2025.1600303/full
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AT oluwatoyinabidemisomoye reconcilingfiscaldecentralizationenvironmentalprotectionexpendituresandstringentregulationswiththeecologicalprioritiesoftheeuropeanunion
AT banjirildwanolaleye reconcilingfiscaldecentralizationenvironmentalprotectionexpendituresandstringentregulationswiththeecologicalprioritiesoftheeuropeanunion
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