A Retest Of Environmental Kuznets Curve Based On Environmental Tax

There has been a rapid improvement of our country‘s comprehensive national power since the reform and opening up.The development of China‘s economy which is a continuously increasing of GDP under the environment of the global financial crisis is even more impressive.China has become the second largest economic entity and has gained attention and acceptance in the world.However,China is facing a severe problem,the environmental pollution,which comes alone with the development of the economy.Under the confliction between the economic development and the environmental pollution and the pressure of the international agreement to reduce emissions,the report at the 18 th National Congress in 2012 had mentioned the promotion of ecological progress which had turned the four-in-one strategy into five-in-one strategy that is to realize the sustainable strategy and green development.At the meantime,the State Council had mentioned the promotion of the reform of environmental tax in the National ―12th Five Year Plan‖ for Environmental Protection.Therefore,it is very essential to implement the environmental tax in our country.This paper establishes models to examine whether there is an inverted U curve between the relation of growth of economy and emission of pollutions,the economic influence of environmental tax,and the effect of environmental tax on reducing emissions.The conclusions are : there is an inverted U shaped relation between ―three wastes‖ and GDP which satisfied the Kuznets hypothesis;there is a positive relation between the environmental tax and the economy which increases with the tax;and the environmental tax can restrain the sewage discharge,but not the emission of waste gases and solid wastes.Then,this paper analyzes the impact of the environmental tax on entire EKC curve by added the environmental tax as a moderator into the system of economic growth and emission of pollutions,and further examines the impact of the environmental tax in different areas on corresponding EKC curves.The EKC curve of sewage moves toward the bottom left after adding the environmental tax variable,which means that the environmental tax can protect the environment,reduce the emission of wastes during economic development and promote the economy as well.However,the environmental tax does not show the restrain effect on the emission of waste gases and solid wastes,because the EKC curves of the two wastes do not move down.In the analysis grouped by region,the EKC curves of sewage in the East,the West and the central area all move toward the bottom left after adding the moderator,implying that the control of the sewage discharge by the environmental tax is significant.Moreover,the EKC curve of the waste gases in the West also moves toward the bottom left by adding the environmental tax.However,there is not an inverted U curve between the relation of the emission of waste gases and solid wastes and the economic growth.In conclusion,the environmental tax can restrain the pollution as well as promote the economic development.It is significant to gradually change pollution fees into environmental tax,and to add other taxes that can protect the environment to form an independent tax.Environmental tax is a tax that is mandatory and can play a better role in protect the environment and promote the economy.However,we cannot rely on the environmental tax,the government should put effort in the development of cleaning technology.Only through the improvement of the reformation of social production mode and the adjustment of industrial structure by scientific innovation and technology promotion,can we realize the environmental friendly green production,reduction of pollution from the source,and the sustainable development.