Research On Regional Tax Competition And Its Impact On Environmental Pollution In China

In recent years,the deterioration of China’s environmental pollution problem is inseparable from the government’s behavior under the Chinese fiscal decentralization system.In order to encourage local governments to develop their economies,the central government decentralizes power,so that it has the autonomy to determine the scale and structure of revenue and expenditure to a certain extent.However,under the pressure of GDP-based performance evaluation,local governments have adopted non-benign tax competition in environmental policies in order to attract external liquidity factors,thus causing environmental pollution while local economic growth.This paper takes the macro tax burden level of local government as the research index,and deeply discusses the impact of tax competition in China on environmental pollution,and puts forward suggestions and directions for improvement of environmental governance in China.Based on the relevant research at home and abroad,this paper uses the local government’s macro tax burden level in 29 provinces from 2004 to 2016 to test the existence of regional tax competition in China and pass local environmental pollution indicators.The level of tax competition is an in-depth study of the relationship between tax competition and environmental pollution in China.Firstly,using R software to use the ratio of local fiscal revenue to regional GDP as the macro tax burden level of local governments,the spatial correlation test is used to verify the existence of tax competition among local governments in the eastern,central and western regions and the form of tax competition strategy.Then,the traditional "three wastes" environmental pollution index and tax economic indicators are used to construct the SARAR model and the panel quantile model to analyze the impact of local governments on environmental pollution in tax competition.Finally,we explore the transmission mechanism of tax competition in different regions for environmental pollution and test it.According to the relevant analysis of tax competition and environmental pollution,the main research findings are as follows: First,there is tax competition among local governments in China;second,tax competition will increase emissions of local sulfur dioxide and wastewater;third,emissions of waste gas and wastewater The different grading levels are different in sensitivity to tax competition.Fourth,physical capital and intellectual capital are the main channels for tax competition to affect environmental pollution.Fifth,there are regional differences in the transmission mechanism of tax competition in China.Based on the above research results,we propose the following suggestions: First,deepen the reform of the decentralization system and constrain the local government environmental policy;second,optimize the performance appraisal mechanism and develop a sustainable economy;third,improve the transfer payment system and standardize the area.Tax competition between the two;Fourth,increase the introduction of intellectual capital and promote rapid industrial upgrading.