Research On The Impact Of Local Intergovernmental Tax Competition On Environmental Pollution

In the past,China has always adhered to the economic development model of "high input,high consumption and high pollution",and the economy has developed rapidly,but with the increasingly serious environmental pollution,the people’s living environment has been greatly threatened,and this extensive development model has been strongly questioned.To this end,since the 18 th National Congress,China has put forward a series of reform and development plans for "building a beautiful China" in the hope of improving the quality of life of the people.However,the causes of environmental pollution are extremely complex,and in the context of the tax-sharing system,the "GDP competition" has led local governments to overly pursue economic development,and in order to increase local fiscal revenue,tax competition has become their main means of competition.By conducting tax competition from both within and outside the system,the tax burden of enterprises is reduced,and environmental access standards are lowered,which leads to an increase in the emission of industrial pollutants and an aggravation of environmental pollution.Therefore,this paper attempts to study the impact of tax competition on environmental pollution from the perspective of local governments,which not only enriches the relevant theories of tax competition,but also provides certain reference suggestions for the control of environmental pollution.Firstly,starting from relevant research at home and abroad,this paper analyzes the latest research results at home and abroad through theoretical and empirical research,and analyzes in detail the mechanism of local tax competition on environmental pollution.Secondly,the national tax revenue,national GDP,provincial tax revenue and provincial GDP were used to measure the level of tax competition,which showed that there was still relatively serious tax competition between local governments,and that the eastern,western,central and northeastern regions showed different levels of competition.Through the description of the current situation of environmental pollutant discharge,it is concluded that the local pollution status is closely related to the energy consumption structure,and although the emission of environmental pollutants has been greatly improved,it also shows a large number of high-polluting and high-energy-consuming enterprises to transfer to the western region.Thirdly,the panel data of 30 provinces(municipalities and autonomous regions)in China from 2008 to 2020 were selected to empirically test the impact of tax competition on environmental pollution through spatial econometric models,and the results showed that the impact effect of tax competition on environmental pollution had a significant spatial correlation,and had a significant impact on the region and neighboring areas,that is,"inferior competition" occurred in the region;Due to the different levels of economic development,this paper uses the spatial Dubin model to conduct a sub-regional study,and the regression results are more consistent with the theoretical analysis,and the western region mainly undertakes high-pollution and high-energy-consuming enterprises from developed regions due to economic development and backward infrastructure,resulting in local environmental pollution.Finally,through the analysis of the current situation and the empirical conclusions,this paper puts forward relevant policy suggestions,from deepening the reform of the fiscal and taxation system to promoting the upgrading of the industrial structure,from weakening the tax competition of local governments to regulating hidden tax competition,and then to improving the environmental protection system,hoping to form a good inter-provincial cooperative relationship and promote the harmonious and healthy development of the economy and the environment.