The Impact Of Value-added Tax Reform On Corporate Pollution Emission

With the continuous advancement of China’s industrialization,China’s environmental pollution problem has gradually emerged.China’s industrial sector is the main participant in China’s environmental pollution because it consumes a lot of resources in production and has a high degree of environmental pollution.Different institutional arrangements have a profound impact on the production mode and market behavior of industrial enterprises,and then affect their pollution emissions.Tax is an important means for our government to carry out macroeconomic regulation and control.As the largest tax in China,value-added tax accounts for more than 40%of fiscal revenue.Therefore,the tax system reform of value-added tax is an economic policy that has a significant impact on the national economy and the people’s livelihood.In this context,it is of great significance to conduct a rigorous empirical study on the impact of value-added tax transformation and reform policy on enterprise pollution emissions.Firstly,this paper introduces the evolution and reality of China’s value-added tax system,focuses on the system content of this stage of value-added tax transformation reform,and theoretically analyzes the internal mechanism of value-added tax transformation reform affecting enterprise pollution emission by alleviating enterprise financing constraints and improving enterprise innovation level.Secondly,using the combined micro enterprise data from 2006 to 2012,this paper empirically tests the impact effect and channel of value-added tax transformation reform on enterprise pollution emission.Through the inspection,it is found that this policy does reduce the pollution emissions of enterprises,but it only significantly reduces the pollution emissions of non-stateowned enterprises and non-heavily-polluting enterprises,has no significant impact on the pollution emissions of state-owned enterprises,and intensifies the pollutant emissions of heavily polluting enterprises.The robustness of the estimation results is tested by PSM-DID method,it is confirmed that the regression result of did is unbiased.Further intermediary mechanism test found that the transformation and reform of value-added tax released positive information to the relevant external stakeholders of market subjects to guide their market behavior,so as to improve the financing environment of enterprises,and then reduce the pollution emission of enterprises,that is,alleviate the financing constraint effect;The transformation and reform policy of value-added tax improves their innovation level by increasing the current cash flow and stimulating market subjects to invest,and then suppresses their pollution emission,that is,the effect of improving the innovation level.Finally,this paper studies the policy effect of value-added tax transformation reform from the perspective of environment for the first time,which has very important policy enlightenment for deepening the reform of tax system.From the research perspective,this paper deeply explores the environmental effects of value-added tax transformation reform from the micro level,in order to clarify the relationship between value-added tax transformation reform and enterprise pollution emission behavior.In terms of research content,on the basis of exploring the causal effect between the transformation reform of value-added tax and the pollution emission behavior of enterprises,this paper deeply tests the role channels of the transformation reform of value-added tax on the pollution emission of industrial enterprises from two channels: alleviating the financing constraints and the level of enterprise innovation,From the perspective of the heterogeneity of enterprises with different ownership and different pollution intensity,this paper investigates the differences of the impact of this policy on the pollution emission of different enterprises,deepening the existing literature’s understanding of the impact of tax reform on the development of enterprises.