Research On Tax And Financial Policy Of Pollution Reduction Under Industrial Structure Adjustment

The manufacturing industry, chemical industry which rapidly develop causegreat damage to China’s ecological environment because long-term follow extensiveeconomic development model of high energy consumption, high pollution. Theecological environment and limited natural resources become the two majorbottlenecks of our current and future economic development, the development wayscharacterized by high input, high consumption, high pollution give way to the newdevelopment, which is comprehensive, coordinated, sustainable development."Twelve Five-Year" Plan states: optimizing energy structure, reasonably control totalenergy consumption, improve resources environmental tax system, improve energyconservation laws and incentive and restraint mechanisms, bring resourceconservation and environmental protection to all areas of the links throughout theproduction, circulation, consumer, construction to enhance the capacity ofsustainable economic development. The role of the market mechanism is limited topromoting pollution reduction. World Bank studies show that market mechanismscan only play20%role in the pollution reduction effect. So, it needs to rely onnon-market factors such as fiscal and financial policies for the industrialrestructuring of pollution reduction. Based on this, the paper select the fiscal andfinancial policies of the pollution reduction as research subjects, deeply analyzes themechanism of fiscal and financial policies to promote pollution reduction, andpollution reduction effects under different fiscal and financial policies, and thenpropose policy of pollution reduction fiscal and financial recommendations whichsuit for China.This paper use the construction of ecological civilization as an opportunityfollowing the research ideas of the “current situation—demonstration—policy” studyeach part of the research. First, it summarize the basic concepts and theories of fiscaland financial policies for pollution reduction of industrial restructuring based on thecollection and collation of the literature; Then, it compare and learn from theadvantages and disadvantages of EU, U.S. and Japan and South Korea pollutionabatement fiscal and financial policies, analyzes the current situation characteristicsand problems of China’s pollution reduction of fiscal and financial policies; Then itbuild the CGE model of pollution reduction of fiscal and financial policy toempirically study pollution reduction effects of fiscal and financial policies; Finally,it put forward fiscal and financial policies of pollution reduction which suit forChina. The main conclusions are as follows: First, our existing fiscal and financialpolicies of pollution reduction mainly have problems which lack of ecologicalcompensation, fiscal transfer payment system needs to be improved as well as lower capital spending efficiency in the use of pollution reduction, China’s currentpollution reduction of tax policy problems of pollution reduction are mainly taxesover a single pollution reduction and regional differentiation of tax policy. Second,the effects of pollution reduction in various industrial sectors under different carbontax rates are different, and with the rising carbon taxes and government subsidies,the effects of pollution reduction have become increasingly significant. Third, theeffects of heavy pollution reduction, coal, oil and gas, transportation, electric power,light industry and other industries the most significant, which mainly due to a highercoefficient of energy consumption in these industries, so carbon tax, financialsubsidy policy responses more sensitive.