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on low carbon economy in most countries mainly comes from the local
government. On an average in OECD countries, capital expenditure
of local governments in the environment low carbon field takes up
about 75 per cent of the total—combined expenditure of the central
and local governments (OECD 2010). If we cannot change the current
division structure and size of low carbon expenditure of the central
and local governments in the short term, it will pose extra demands
and challenges for the financing capacity of local governments to
develop a low carbon economy.
Second, considering the importance of local government
expenditure in the financial supply for low carbon economy, we
further analyse the percentage contribution of the local government
on low carbon economy in the total expenditure. As the priority
sector and other restraints vary, cities differ a lot from each other in
terms of the percentage of expenditure in low carbon sectors in the
total expenditure; the expenditure composition of major cities in low
carbon sectors also differs. According to the present scenario, local
government expenditure in low carbon and green economic sectors
accounts for the majority of all the local government expenditure in
some European Union (EU) countries while in others, the expenditure
in low carbon sectors only takes up a small percentage of the total
local government expenditure. Table 2.3 gives the various types of low
carbon expenditure of the Central and local governments.
Table 2.3 Types of Low Carbon Expenditure of the Central and Local Governments
Types Characteristics Representative Countries
Expenditure Over 90% of fixed-asset investment in France, Germany, Hungary,
mainly coming environmental protection and low carbon sectors Ireland, Israel, South Korea,
from local comes from local governments the Netherlands, Norway,
governments Poland, and Switzerland
Expenditure The fixed-asset investment expenditure of local Austria, Belgium, Denmark,
coming governments in environmental protection and low Italy, and Portugal
from Central carbon sectors accounts for between 20% and
and local 45%
governments
Expenditure The expenditure of the central government Greece, Iceland, Spain, and
mainly coming (including state governments in some countries) the United Kingdom
from the central exceeds that of local governments on fixed-asset
government investment in environmental protection sectors,
accounting for more than 50% of the total
expenditure
Source Author compilation
78 Low Carbon Development in China and India
government. On an average in OECD countries, capital expenditure
of local governments in the environment low carbon field takes up
about 75 per cent of the total—combined expenditure of the central
and local governments (OECD 2010). If we cannot change the current
division structure and size of low carbon expenditure of the central
and local governments in the short term, it will pose extra demands
and challenges for the financing capacity of local governments to
develop a low carbon economy.
Second, considering the importance of local government
expenditure in the financial supply for low carbon economy, we
further analyse the percentage contribution of the local government
on low carbon economy in the total expenditure. As the priority
sector and other restraints vary, cities differ a lot from each other in
terms of the percentage of expenditure in low carbon sectors in the
total expenditure; the expenditure composition of major cities in low
carbon sectors also differs. According to the present scenario, local
government expenditure in low carbon and green economic sectors
accounts for the majority of all the local government expenditure in
some European Union (EU) countries while in others, the expenditure
in low carbon sectors only takes up a small percentage of the total
local government expenditure. Table 2.3 gives the various types of low
carbon expenditure of the Central and local governments.
Table 2.3 Types of Low Carbon Expenditure of the Central and Local Governments
Types Characteristics Representative Countries
Expenditure Over 90% of fixed-asset investment in France, Germany, Hungary,
mainly coming environmental protection and low carbon sectors Ireland, Israel, South Korea,
from local comes from local governments the Netherlands, Norway,
governments Poland, and Switzerland
Expenditure The fixed-asset investment expenditure of local Austria, Belgium, Denmark,
coming governments in environmental protection and low Italy, and Portugal
from Central carbon sectors accounts for between 20% and
and local 45%
governments
Expenditure The expenditure of the central government Greece, Iceland, Spain, and
mainly coming (including state governments in some countries) the United Kingdom
from the central exceeds that of local governments on fixed-asset
government investment in environmental protection sectors,
accounting for more than 50% of the total
expenditure
Source Author compilation
78 Low Carbon Development in China and India
