A Study On The Impact Of Tax Competition On Environmental Pollution In China

With the rapid development of China’s economy,both national strength and people’s living standards have been greatly enhanced and improved.However,the problem of ecological environment damage is becoming more and more serious.Excessive pursuit of high-speed economic development makes the ecological and economic imbalance.With the increasingly prominent pollution problem,the government and people attach great importance to ecological problems.When environmental protection is put in the national strategic height,it shows that China’s environmental pollution has entered a new stage.On the one hand,pollution as a public goods,affected by externalities,the willingness of enterprises to reduce emissions is not very high,so it needs further guidance and regulation from government departments.On the other hand,when the local government carries out tax competition and the tax burden is relatively small,enterprises will choose to enter the local area based on the goal of profit maximization,which will increase the pressure on the local ecosystem to a certain extent.Therefore,from the perspective of tax competition,this paper seeks to solve the problem of environmental pollution.At the same time,in the context of China’s ecological construction,both gold and silver,but also green water and green mountains,environmental regulation has been strengthened year by year,and various environmental pollution supervision measures have also played a positive role in solving environmental problems;with the continuous development of service industry and high-tech industry,tertiary sector has greened ecological environment.Optimizing and upgrading industrial structure cannot only advance environment,but also improve the industrial structure Stimulating economic growth can also improve environmental conditions.Therefore,this paper studies the impact of tax competition on environmental pollution by adding environmental regulations and industrial structure analysis,from these two aspects to see the specific impact of tax competition on the environment,and then can put forward more targeted suggestions and measures in the process of environmental governance.Different from the fiscal decentralization system in western countries,China’s local governments have relatively less power in taxation,but this does not mean that there is no tax competition in China.After introducing the introduction and literature review,related concepts and theoretical basis are presented in Chapter 2,analyzes the impact mechanism of tax competition on environmental pollution On this basis,three hypotheses are put forward.The third chapte makes analysis on the current situation of tax competition and environmental pollution in China separately.The analysis shows that under the promotion of market economy,accelerating the flow of capital elements,performance appraisal based on GDP,tax sharing system and regional tax preferential policies,local governments in China will also carry out tax competition,which is more recessive through relaxing tax collection and management and financial return At the same time,the third chapter also analyzes the current situation of environmental pollution in China,indicating that the solution of environmental pollution is still imminent.In the fourth chapter,based on the panel data of 286 prefecture level cities in China from 2011 to 2018,the spatial Durbin model is used for analysis,and the following conclusions are drawn:(1)the current tax competition in China is still "inferior competition",that is,tax competition will increase the local environmental pollution emissions and improve the environmental pollution problems in the neighboring areas.(2)China’s current environmental regulation measures have played a certain role in improving environmental pollution,but the improvement effect is not enough to make up for the environmental pollution caused by increased tax competition.(3)In tax competition,to a certain extent,the advancing of local industrial structure can cut down pollution emissions.However,the upgrading of industrial structure in China is still in its primary phase,not making a clean sweep.After analysing and summarizing the research above,the paper also puts forward relevant suggestions and measures in terms of regulating tax competition behavior,strengthening environmental regulation,facilitating the optimization and upgrading of industrial structure,optimizing the performance evaluation method and promoting the joint governance of various regions,so as to have some help to the improvement of ecological environment from the perspective of tax competition.The innovation points of this paper are as follows: in the research on the impact of tax competition on environmental pollution,the heterogeneity of environmental regulation intensity and industrial structure upgrading should be added in the innovation process,and the cross item between the two and tax competition should be added in the empirical process to analyze the situation of environmental pollution;the data of 286 prefecture level cities from 2011 to 2018 were selected to reflect the situation of prefecture level cities in recent years The results are more convincing.There are some shortcomings: This paper uses the macro measurement method to measure the tax competition,not the micro measurement of enterprise tax burden;in the measurement of environmental pollution,it uses the emission intensity of industrial wastewater and industrial sulfur dioxide,although these pollutants have certain representativeness,they still can not fully reflect the pollution status of a region.