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The Chinese government's use of fiscal policy, which includes fiscal income and spending, is crucial in its fight against environmental pollution and climate change. Innovation‐driven has arisen as a new alternative to reconcile economic success with environmental conservation in light of tighter resource restrictions and the suggestion of the Chinese High‐quality Development policy. The paper uses an econometric model to examine the connection between institutional resource consumption efficiency and carbon neutrality, using a data set consisting of Chinese inter‐provincial panel data from 2007 to 2020 as a research sample; fiscal decentralization is also discussed as a potential moderating factor. Collaborative innovation positively boosts ecological efficiency and produces geographical spillovers, and the findings suggest so long as the economic distance is considered. When it comes to increasing ecological efficiency, collaborative innovation plays a more important role than financial decentralization alone. Among these is the improvement of carbon neutrality, which is best achieved via the joint promotion of ecological efficiency and industrial organizations. By reducing the intensity of the positive effect of innovative cooperation on ecological efficiency, the moderating effect suggests that fiscal decentralization is a critical factor in this relationship. Promoting China's ecological efficiency necessitates a fair distribution of local budgetary spending. China should also actively encourage the degree of synergy between institutional resource consumption efficiency and associated institutions to improve eco‐efficiency. [ABSTRACT FROM AUTHOR]

We investigated how ozone pollution and climate change/variability have interactively affected net primary productivity (NPP) and net carbon exchange (NCE) across China's forest ecosystem in the past half century. Continental China. Using the dynamic land ecosystem model (DLEM) in conjunction with 10-km-resolution gridded historical data sets (tropospheric O concentrations, climate variability/change, and other environmental factors such as land-cover/land-use change (LCLUC), increasing CO and nitrogen deposition), we conducted nine simulation experiments to: (1) investigate the temporo-spatial patterns of NPP and NCE in China's forest ecosystems from 1961-2005; and (2) quantify the effects of tropospheric O pollution alone or in combination with climate variability and other environmental stresses on forests' NPP and NCE. China's forests acted as a carbon sink during 1961-2005 as a result of the combined effects of O, climate, CO, nitrogen deposition and LCLUC. However, simulated results indicated that elevated O caused a 7.7% decrease in national carbon storage, with O-induced reductions in NCE (Pg C year) ranging from 0.4-43.1% among different forest types. Sensitivity experiments showed that climate change was the dominant factor in controlling changes in temporo-spatial patterns of annual NPP. The combined negative effects of O pollution and climate change on NPP and NCE could be largely offset by the positive fertilization effects of nitrogen deposition and CO. In the future, tropospheric O should be taken into account in order to fully understand the variations of carbon sequestration capacity of forests and assess the vulnerability of forest ecosystems to climate change and air pollution. Reducing air pollution in China is likely to increase the resilience of forests to climate change. This paper offers the first estimate of how prevention of air pollution can help to increase forest productivity and carbon sequestration in China's forested ecosystems. [ABSTRACT FROM AUTHOR]