Economic Effects Analysis To The Imposition Of Environmental Tax And Tax Design

For a long time, China has depended on the extensive economic growth mode,which howeverbrought bad effects to the natural resource and the environment.So we’re facing the urgent task ofprotecting the environment.As an economic instrument, Environmental tax has been widelyimplemented among the foreign countries.Up till now,China hasn’t set up a special tax aiming at theenvironment protection,and we’re eager to reform the environmental related tax of our country.From the perspective of coordinated development between economy and environment,the essay isfocused on the economic effects to the imposition of the environmental tax.Through advising theenvironmental tax in a reasonable way,We hope to make sure that tax reform goes well and everyonecould support the reform policy.The paper includes theoretical analysis and empirical research.Firstly,based on the theory ofmicro-economics,the paper focuses on the influence on producers and consumers caused by theimposition of environmental tax.Secondly,through a brief introduction of the foreign environmentaltax,the paper concludes the experiences which could be learned by China,that is,selecting the reformmode carefully;sticking to the neutral income principle;setting up different tax rates and so on.Andthen the paper begins the empirical research.By using the corrected Cobb-Douglas productionfunction,together with the panel data of29provinces of China from2002to2012,the paper tests themacro economic effects of the environmental tax,mainly about the economic growth, incomedistribution,and energy consumption.The result shows that environmental tax does good the wholeeconomy as long as designing it in a reasonable way.At last,the paper puts forward several advice to the imposition of environmental tax in China,thatis,we should persist in three principles:fairness is as important as efficiency;protecting thecompetitiveness of enterprises;maintaining the whole tax burden.When it comes to the concretesuggestions,the paper mentions that taxpayer is determined by the polluter-pays principle;tax on themain pollutant at first; determining the difference between the tax rate by environmental pollutioncontrol costs;classifying environmental tax to local tax;designing tax incentive wisely.