Research On The Effect Of Regional Tax Competition On Ecological Environment

The report of the 19 th national congress of the communist party of China proposed to establish and practice the idea that green water and green mountains are mountains of gold and silver,adhere to the basic state policy of conserving resources and protecting the environment,build a beautiful China and create a good production and living environment for the people.In recent years,the neglect of ecological and environmental protection in various parts of China has significantly changed,the formation of an ecological civilization system has been accelerated,the awareness of regional governments on ecological and environmental governance has been significantly enhanced and the state of the ecological environment has been improved.However,there is still a long way to go in ecological environmental protection and environmental pollution control.In order to promote regional economic growth,local governments will use a variety of competitive means to attract scarce factor resources and tax revenue,as the main part of fiscal revenue,will become the main way for local economic interest competition.Although local governments have no right to introduce preferential tax policies,they promise tax reductions and exemptions to enterprises through tax returns,fiscal subsidies and other tax competitive means within the system,as well as tax sales and sales and other tax competitive means outside the system.Thus,local governments rely on tax competition to increase regional economic aggregate,stabilize regional tax sources and ensure local tax revenue.Local government’s emphasis on competition will also result in insufficient supply of non-economic public goods.As a typical non-economic public goods,ecological environment becomes the victim of tax competition.This paper mainly studies the effect of regional tax competition on ecological environment in China.This paper analyzes the theoretical mechanism and transmission path of the impact of the regional government tax competition on the regional ecological environment and puts forward the hypothesis.The spatial econometric model and dynamic panel model were used to empirically test the panel data of 30 provinces(municipalities and autonomous regions)from 2008 to 2017.Regional tax competition has negative effect on ecological environment.From the perspective of tax structure,it is found that different tax types have different effects on ecological environment.Based on the heterogeneity analysis,it is found that there are differences in the effects of tax competition on ecological environment in different regions.Based on the above conclusions,this paper believes that it is necessary to standardize the relationship between the central government and local governments,accelerate the establishment of a modern financial system,regulate the unreasonable tax competition between regions,introduce a tax coordination mechanism,optimize the regional tax competition environment,deepen the reform of fiscal and tax systems,and improve the setting of taxes related to the ecological environment.At the same time,we should change the concept of development,adopt a stricter ecological protection system,coordinate the pace of economic,social and ecological development,and enable local government to form a benign interaction with environmental government.