Study On Green Tax System In Encouraging Energy Saving And Emission Reduction

2008 will be a critical year for accomplishing the target of energy conservation and carbon emission reduction in"the eleventh Five-Year plan"; The Premier proposed ten specific aspects for environmental protection, which made conservation of resources and environment not only just fustian. The current situation of conservation in China is severe. We should not only focus on economic benefits, but also consider ecological benefits. That means we must establish the balance between these two benefits: we have to sacrifice a part of the GDP in order to achieve sustainable development.Green Tax as an economic means of environmental control for governments should play an important role in the aspects on which Green tax can make strong impacts. These aspects could be concluded to exploit new resources, reduce consumption of energy, promote recycling, conserve current resources. We should exploit renewable energy sources instead of traditional sources, support energy-consuming industries to reduce the consumption of energy and to promote comprehensive utilization of resources, improve recycling of reusable resources, reduce the emission of pollutant and help residents establish green life style.This paper centers on the optimization of Green Tax system in China. Keeping in mind the balance between human beings and nature, economic benefits and ecological benefits, I made some theoretical and empirical analysis on the Green tax systems in OECD countries. By comparing the systems in these countries, as well as the discussion on Green Tax legislation in Taiwan District, I put forward some specific suggestion on the reform of Green Tax system in China.The optimization of Green Tax system is a huge and complex project, so we should take gradual and cautious steps to achieve our goals. The optimization of Green Tax system should be based on the stability of tax burden and should not harm the competitive strength of our enterprises. The government should use tax differential to guide citizens to form green living habits, to promote energy conservation and carbon emission reduction, to establish energy-saving and environmental industrial structures and consumption patterns, and ultimately, to achieve harmonious co-existence between man and nature, economy and environment.