Abstract: Under the guidance of the new development concept,Chinas economy is stepping into a stage of high-quality development.Speeding up the improvement of the system and policy environment is the fundamental requirement for the realization of high-quality economic development.In recent years,China has implemented a series of environmental regulation policies.Under the Chinese style fiscal decentralization system,will the vicious competition of “environmental competition” among local governments be reversed due to the constraints of environmental regulations? The compound effect of environmental regulation policy and fiscal decentralization system on high-quality economic development is worth exploring.This paper uses global Malmquist-Luenberger(GML)index estimates the green total factor productivity of 283 cities at prefecture level and above in China from 2004 to 2016 to measure the high-quality economic development.It also establishes a non-linear adjustment model of fiscal decentralization,environmental regulation and high-quality economic development,and systematically investigates the relationship between fiscal decentralization,environmental regulation and high-quality economic development in China.The results show that:Chinas current fiscal decentralization system has a negative impact on high-quality economic development,and there is vicious competition among local governments;environmental regulation has a “U-shaped” regulatory effect on fiscal decentralization and high-quality economic development,and the effect presents threshold characteristics.

Key words: fiscal decentralization, environmental regulation, high-quality economic development, “U-shaped” regulation