Effects of Environmental Protection Expenditures on Provincial Environmental Protection Performance

Thuc Huong Giang Nguyen 1, Anh Phan1, , Ha Hai Nguyen 1, Anh Dieu Tran1, Son Trung Mai 1, Thao Thi Phuong Ha2
1 Ha Noi University of Science and Technology, Ha Noi, Vietnam
2 State Securities Commission, Vietnam

Main Article Content

Abstract

Amid rising environmental pressures in emerging economies, the effectiveness of public environmental spending remains an open question. Vietnam, undergoing rapid industrialization and urban expansion, offers a unique setting to assess whether fiscal efforts translate into tangible environmental improvements. This study investigates the impact of provincial environmental protection expenditures (EPE) on air, water, and land quality across 63 provinces from 2019 to 2023. Building upon the DPSIR (Driving- Forces–Pressures–State–Impacts–Responses) framework, panel models and a Seemingly Unrelated Regression (SUR) system are employed to capture interlinked environmental outcomes. The findings reveal domain-specific effects: EPE significantly enhances wastewater treatment coverage, yet exhibits limited short-term influence on air pollution or land-use transitions. Socio-economic factors such as Human Development Index (HDI) and population density also shape environmental performance, improving emission efficiency and clean water access. These results underscore that fiscal environmental investments in Vietnam yield selective rather than universal benefits, emphasizing the importance of integrated, spatially targeted, and long-term fiscal strategies for sustainable environmental governance

Article Details

References

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