Empirical Research On Meta-frontier Marginal Abatement Cost Of China's Three Major Urban Agglomerations

The environmental protection tax is implemented in China for the first time in early 2018,realizing “tax to tax shift”.However,are the tax standards introduced by the regional governments based on the tax items and tax schedules really consistent with the economic development and environmental protection of each region? Considering the influence of heterogeneity,this paper selects the data of the three most developed urban agglomerations in China from 2003 to 2017 to construct environmental technologies for each group.Based on the meta-frontier,the marginal abatement cost of sulfur dioxide in each region is calculated to optimize the environmental protection tax policy.The study finds that the meta-DDFs of the three major urban agglomerations show a step-up trend from 2003 to 2012 and peak in 2013.According to the potential productivity,each agglomeration can achieve an annual emission reduction of 81,900 tons,27,000 tons and 17,300 tons.In terms of marginal abatement cost,the meta-based shadow prices of Beijing-Tianjin-Hebei,Yangtze River Delta,and Pearl River Delta urban agglomerations are 12.23,12.26,and 11.49 Yuan/kg respectively in 2017.While the shadow prices of pollutants under different environmental regulations are 7.70,15.91,and 15.17 Yuan/kg.In terms of environmental taxes,the higher the tax rate is,the lower meta-DDFs and marginal abatement cost are.Generally speaking,the Beijing-Tianjin Hebei urban agglomeration has implemented the most stringent tax standards,which has obvious emission reduction effects and meets the characteristics of the capital city.The meta-DDFs and marginal abatement cost of the urban agglomerations in the Yangtze River Delta and the Pearl River Delta are higher,but the tax standards are lower.Therefore,each urban agglomeration should increase the intensity of environmental regulation,strengthen the coordinated development of urban agglomerations,give full play to the fiscal function and realize the transfer payment of tax.In addition,we should build an effective environmental tax system based on the marginal abatement cost and economical supporting capacity of various regions to realize economic development and environmental protection.