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KEPB
Local Government Environmental expenditure performance evaluation and a suggestion for reform
Ⅰ. Background and Aim of Research
1. Aim of research
oWe develop performance evaluation tool of local governments that subsidized through specific grants for environments, using Environment Specific Grant Database constructed in 2022.

o Due to dwindling revenue of Environmental Protection Special Account and long-term government revenue shortage, we need to enhance efficiency of environmental government spending by improving efficiency of specific grants for environment.
ㅇ In 2022, 62.5% of environmental government expenditure was spent through specific grants for environment.
ㅇ Specific grants have some inefficiency problem due to restrain on creative of local governments in planning, restricted transfer between projects in implementation, duplication of similar projects, and difficulties in evaluation of individual local governments.

o In this research, we develop evaluation tool for local governments that received specific grants for environment, and develop methodology for possible evaluation and feedback for local governments using that evaluation tool.
ㅇ We develop quantitative evaluation tool for local governments for specific grants that subsidized sizable number of local governments for long time. This evaluation tool can be work as compliments for current project based evaluation.
- For specific grants subsidizing small number of local governments, current project based evaluation is still effective.
ㅇ We estimate the effect of central government subsidy of a specific grant to the environmental indicator of local government that are related to the performance