From the perspective of transfer payment from central government，which captures the characteristic of Chinese tax distribution system，this paper investigates the influences of fiscal decentralization upon energy consumption and carbon emission after the tax system reform in 1994Our research results implicates that，overall fiscal decentralization has a positive effect towards energy consumption and carbon emission，though this conclusion would become mixed in individual levelWithout relevant institution reform，especially fiscal decentralization system reform，energy save and emission reduce policies may failIn contrast to previous research conclusions，we discover that the Environmental Kuznets Curve (EKC) of energy consumption and carbon emission has a weak “N” shape，which has only one single inflection pointChina hasnt reached the first inflection point in which energy consumption and carbon emission unhook connections with economic growthTechnology improvement will significantly reduce energy consumption and carbon emission，while population growth can significantly promote energy consumption and carbon emissionUrbanization and foreign direct investment (FDI) do not affect energy consumption and carbon emission