Research On The Implementation Effect Of Environmental Protection Tax In China

In recent years,our government has been taking various measures to control environmental pollution.On December 25,2016,The < Environmental protection tax law of China> was promulgated at the 25 th session of the standing committee of the 12 th National People’s Congress.The law,enacted by the government with the aim of using the market to tackle environmental pollution,came into force on January 1,2018,and was revised from the previous <regulation on the collection and use of sewage charges>.Both pollutant discharge fee and environmental protection tax law are punitive taxes levied on pollutant discharge in China,which belong to the scope of environmental protection tax in a narrow sense.Under this background,this paper combines theory with empirical study to explore the implementation effect of China’s narrow environmental protection tax from three aspects: pollutant emission reduction,economic growth and technological innovation.Firstly,this paper reviews the literature on the concept of environmental protection tax,the policy of environmental protection tax at home and abroad and the implementation effect of environmental protection tax.Secondly,using the empirical method to study the implementation effect of the environmental protection tax policy in China,empirical study divided into three steps: One is to use the method of theoretical analysis to put forward research hypotheses,including pigou tax theory,game theory,laffer curve,microeconomic principles,etc;Second,empirical research design,including the introduction of dynamic panel data model principle,sample selection and data sources,variable design,variable stationarity test and triple effect model construction;Third,analyze the regression results of the model and conduct robustness test to verify whether the triple effect model has high credibility.The empirical results show that the environmental protection tax policy has achieved good results in China,which can bring "triple dividend" to China :(1)reduce the emission of the three major pollutants,and reduce the environmental pollution level;(2)promote economic growth;(3)promote technological innovation of enterprises.The results verify the existence of "double dividend" hypothesis and "porter hypothesis" in China.Finally,according to the research conclusion,this paper puts forward the following suggestions for improving China’s current environmental protection tax policy:(1)follow the principle of tax neutrality;(2)gradually raise the tax rate of environmental protection tax;(3)expand the scope of tax collection;(4)increase the intensity of environmental protection investment;(5)standardize the collection and management mechanism of environmental protection tax.