Study On The Effect Of Water Resource Tax On Saving Water

Water is the source of human life and the basis of human survival.Although China has abundant total water resources,the amount of water resources per capita is very small,and water resources vary greatly from north to south and are unevenly distributed in both time and space.At the same time,water pollution and waste are prominent and have severely restricted the sustainable development of China’s economy in 2016,Hebei Province became the first pilot area for the conversion of water resource fees to taxes.In December 2017,nine provinces and municipalities,including Henan,Tianjin and Sichuan,became the second batch of pilot areas for water resource taxes.As one of the pilot provinces with more abundant water resources,Sichuan Province’s reform experience has important implications for unreformed regions.This thesis reviews and compares the literature on water resources tax at home and abroad,and on the basis of summarising relevant theoretical studies on water resources tax,reviews the effect of implementing water resources tax policies in Sichuan Province.This thesis first reviews the literature on water taxation at home and abroad,defines the concept of water taxation,and introduces theories related to water taxation.The theoretical foundation of the thesis is laid by clarifying the mechanism of water resources taxation.The thesis then takes the water resources tax reform in Sichuan Province as a starting point,explaining the water resources situation in Sichuan Province,and analysing the effects and shortcomings of the water resources tax in Sichuan Province.Next,using panel data from2010 to 2021,a synthetic control method is chosen to assess the effects of the water tax policy from multiple perspectives.The empirical results show that the implementation of the water resource tax policy can reduce the amount of water used per 10,000 Yuan GDP,but that the effects vary across the three areas of agricultural,industrial and domestic water use.The study of the water resource tax system in Sichuan Province found that there are currently many problems with the implementation of water resource tax in China.In response to these problems,this thesis proposes policy recommendations in three areas: institutional design of the water resources tax,collection and management system and improvement of supporting facilities.This thesis examines the effectiveness of water resources tax reform in Sichuan Province,summarises the problems encountered in the process of policy promotion and makes relevant recommendations.As China’s water resources tax pilot is relatively short,more practical issues need to be explored in depth as the reform practice continues to enrich.