Analysis On The Impact Of Canceling Export Tax Rebate On Carbon Emission

The implementation of export tax rebate policy has brought Two High andOne Resource in recent years on the fast track, making it the vanguard inexports. Yet, the rapid development is made possible at the costs of the massiveconsumption of mineral resources and deterioration of environment. Muchimportance has thus been attached on environment protection and resourcepreserving by many countries as they develop the economy. Export tax rebatepolicies of many countries have transformed towards realizing the restructuringof their commodities，with a view to readjusting industrial set-up and towards asustainable economy. Sizing up her own national circumstances, China has,since2004, begun to litf export rebates with an attempt to curb environmentpollution and cut carbon emissions. By the end of2010, most export rebates ofcommodities in “Two High and One Resource" have been eliminated. Yet verylittle research has examined the effect of the elimination on carbon emissions.This paper, adopting a two-step method, is written to address the abovequestion.The papers, above all, ran a literature review, home and abroad, of relevantempirical studies that discussed the relation between export rebates and exportand that between export and carbon emissions. Following that is an analysis ofthe performance of exporting by China’s “Two High and One Resource" as wellas China’s history of the policy adjustment. The theoretical approach revealsthat the reduction of export rebates increases the exporting costs and results indeclines in exporting. Next, by empirically trying out Diffcrence-in-Difference,we were able to test the influence of lifting export rebates on certain types ofsteel products on their export volume in2010. Then, we found the correlationbetween export and carbon emission atfer figuring out the hidden carbon in steelproduction cycle. And that helps to deduce the desired outcome in steel industry.By running regression analysis on SPSS, we noticed that fluctuations in exportrebates could bring about changes in growth rates of export-every1percentage drop of the former leads to0.949percentages of the latter. In the long run, thescale of expotr also weighs in changing the amount of carbon emission-every1percentage decline of export volume leads to0.882percentage of carbonemission. That is to say, reducing a country’s export rebates decreases its export,which helps curb the emission of CO2The result shows that China’s policythe piecemeal elimination of export rebates does achievc the effect ofrestraining carbon emissions.