The Nexus Between Fiscal Decentralization and Environmental Sustainability in Japan

This paper adds to the existing body of knowledge by incorporating role fiscal decentralization (FD) in influencing CO 2 emissions. Therefore, this study looked at effect FD on emissions presence nonrenewable energy consumption (NRE), renewable (REN), gross domestic product (GDP), and trade openness (TOP) for period 1994–2018 Japan. Thus, current work intends fill gap employing econometric techniques such as Bayer Hanck cointegration, dynamic ordinary least squares (DOLS), fully modified (FMOLS), canonical cointegration regression (CCR). Additionally, frequency domain causality analysis is used investigation determine causal impact FD, NRE, REN, GDP, TOP CO2 The novelty frequency-domain approach that it can differentiate between nonlinearity levels show among parameters with different frequencies. DOLS, FMOLS, CCR results reveal augment Japan, whereas REN increase quality atmosphere. Furthermore, test have implications long run, while NRE raises medium run. As a policy direction, suggests expanding Japan emphasizing more Sustainable Development Goals (7, 8, 13).