Research On Environmental Governance Effects Of Our Fiscal And Taxation Policies

In recent years,with China’s rapid economic growth,resource and environmental situation is becoming more critical,environmental protection now is on the top agenda and becomes more urgent than ever before.Due to environmental externality and its features of public goods,it requires government play a greater role in environmental protection,and adopt reasonable means of finance and tax policies to promote environmental governance.Normative analysis and empirical analysis methods are used in this paper,this paper analysis the effect of the present fiscal and tax policy on environmental governance.Then under the overall framework of fiscal and taxation reform,We will continue to deepen reform the fiscal and taxation systems and further refinements to the policies,to promote environmental protection and realize economic and social sustainable development.Firstly,Based on public goods theory and externality theory,this paper investigates the mechanism of action of fiscal and taxation policies and make comparative analysis.Then with standardizing analytical method,the paper summarizes the problems existing in the current fiscal and taxation system,such as inadequate investment in environmental protection,no independent environment taxes in China’s current tax system and so so.Empirically,based on general panel data model,this paper selects 2007-2013 empirical study of the Panel data of 30 provinces,to explore the impact of fiscal and taxation policies on controlling pollution.The results showed that investment in environmental protection has a positive impact on environmental governance,but sewage charges aggravated environmental pollution instead of inhibiting environmental pollution.Finally, according to the empirical results and practice of environmental tax system from abroad,the paper makes suggestions including increasing environmental investments,adjusting of consumption tax and resource tax,increasing the government green procurement,levying environmental tax and so on. What’s more,to improving the environment,we also must implement other means such as promoting scientific and technological innovation and upgrading of the industrial structure and so on.