Research On Local Economic Growth Of Environmental Protection Tax

Environmental protection is not only an issue of people’s livelihood,but also a matter of sustainable economic development.Since the reform and opening up,the contradiction between environmental protection and economic development has deepened,in order to solve the problem of environmental governance,China officially implemented the Environmental Protection Tax Law of the People’s Republic of China on January 1,2018.The first legislation of environmental protection tax fully demonstrates the great importance that the state attaches to environmental issues.The introduction of environmental protection tax has not only achieved good results in environmental governance,but also played an important role in establishing a green tax system and promoting regional economic development in China.Based on the provincial panel data from 2000 to 2021,this paper uses the two-way fixed-effect model to study and analyze the role of environmental protection tax on regional economic development,and concludes the following: first,environmental protection tax has economic dividends to regional economic development to a certain extent;Second,environmental protection tax has a double threshold for the local economy;Third,for different regions,the regional economic effect of environmental protection tax is different,and the optimal tax rate to be achieved is also different.Finally,according to the existing problems,policy suggestions such as optimizing the current environmental protection tax system,promoting regional economic development,strengthening departmental coordination in collection and management,improving the national tax-related information sharing platform and setting up special environmental funds are put forward.