The Fiscal And Taxation Policy Research For Controlling Smog In China

With the rapid development of the economy,people's standards of living are raised,but our atmospheric environment is increasingly deteriorated,especially these years,most areas of China were hit by haze weather.It not only brings a lot of inconveniences to production and living,but also poses a serious threat to human health.So the smog has become a painful point in people's hearts.The situation calls for prompt action.Fresh air belongs to the public resources,everyone enjoys possession and use right.Just because of this,there implies strong incentives to free-ride when people are using air,which leads to atmospheric environmental problems such as gray skies.As for tackling smog pollution,it is invalid to rely on the market mechanism alone,which needs the government to regulate.As a macroeconomic tool,financial and taxation policies are indispensable in the prevention of smog.First,this paper presents the significance for tackling smog with the growing haze pollution in China in recent years,and summarizes the research papers at home and abroad.Secondly,this paper analyzes the mechanism of finance and taxation policy on smog pollution prevention,its essence can be seen as a kind of incentive and constraint mechanism: On the one hand,by the financial expenditure means such as investment for environmental pollution treatment,the authorities encourage governments at all levels carry out the smog pollution prevention work and incite enterprises to spontaneously produce energy-saving and environmental protection products;On the other hand,by the financial revenue means such as collecting environment tax,the authorities restrain the pollution-emission activities and urge all parties to reduce exhaust emission.The third part reviews the evolution process and current status of the finance and taxation policy on smog pollution prevention in China and discovers that the current finance and taxation policy on smog prevention in China exists several disadvantages such as the weak financial investment and inadequate tax system.The reasons can cum up to following aspects:the limitation of economic development,the unclear power division and the imperfect tax system.The fourth part employs the TOPSIS evaluation model to empirically study the effect of finance and taxation policy on smog prevention and concludes that the effect of finance and taxation policy on smog prevention in China has an increasing trend.The fifth part lists the finance and taxation policy on smog prevention which foreign governments adopted,and puts forward the valuable experiences for our country,such as increasing financial support for the prevention of smog,improving relevant financial subsidies policies and tax preferential policies and optimizing the tax items related to smog prevention.The last part gives advice of improving the finance and taxation policy on smog prevention: tackling smog through PPP model,improving relevant financial subsidies policies,forming regional smog prevention funds and overcoming the difficult problems in the early stages of the introduction of environment tax.Choosing the current social hot "haze" as the thesis topic and starting from financial and tax policy standpoint,this paper puts forward some reasonable suggestions for how can China to overcome the problem of haze,and attempts the empirical researches on the effect of China's fiscal and tax policies for harnessing haze by using TOPSIS evaluation model.To a certain extent,it has made up for the lack of empirical research in this field.