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water conservancy facilities and waste disposal. Last but not least, in
London, New York, and Melbourne, the local government expenditure
on low carbon and green economy accounts for less than 10 per cent
of the total local government expenditure, and in Chicago, it is about
14 per cent. The expenditure on low carbon economy in these cities
takes up a small percentage of the total local expenditure.
The above analysis only tries to categorize the relationship between
local government expenditure and low carbon economic development
based on the percentage of local government expenditure—in relation
to total local expenditure—in the pursuit of a low carbon economy.
It shows, only to some extent, the importance attached by the local
government to low carbon economy in its expenditure policy, and
cannot be used to tell the determination of local government to develop
low carbon economy. For example, though London has only a small
percentage of expenditure on low carbon economy, it has developed
a comparatively comprehensive and ambitious low carbon economic
plan and greenhouse gas emission reduction plan; it is also one of the
most active cities in the world in its response to climate change. As
mentioned above, each local government and their respective country
have their own systems, development goals and phases, so there is no
unified standard to measure the financing needs of local government
to develop low carbon economy. However, on the whole, in most
countries, local governments face a bigger financing challenge for the
development of low carbon economy than the central government.
The main reason is because in most countries, the expenditure on

Figure 2.2 Structure of Local Government Expenditure in Major Cities: The Percentage of Expenditure
on Low Carbon Economy and Other Expenditure (2010)
Source: Merk et al. (2012)

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