Abstract: In recent years, China’s large cities are suffering serious haze pollution one after another, which is threatening the health of urban residents and the sustainable development of economy. Based on the analysis of the changes of local government behavior patterns resulted from fiscal decentralization and the effect of spatial pollution spillover, this paper conducts an empirical test by making use of the PM10 panel data of China’s 29 large and medium cities from 2003 to 2012. The results show that the rising of fiscal autonomy can stimulate local governments to strengthen their governance of haze pollution, while the competition between local governments resulted from fiscal decentralization can weaken this kind of stimulating effect; the pollution spillover at the neighboring areas of cities and industrialization would further boost the formation of haze. Further analysis according to the regional heaviness and mildness of pollution shows that regional differences are obvious in the process of haze formation, so that the most effective method dealing with haze pollution is to adjust measures according to local conditions and to coordinate their efforts in prevention and control of the pollution.

Key words: fiscal decentralization; urban haze pollution; local government competition; spatial pollution spillover