Abstract
Enhancing green total factor productivity (GTFP) is essential for achieving the objective of green development, and the effect of environmental protection tax (EPT), a crucial instrument for addressing environmental challenges, on green TFP is crucial. Based on provincial panel data from 2004 to 2020 in China, this study uses inter-provincial differences in environmental protection tax rates as a quasi-natural experiment and utilizes a synthetic control method to assess the impact of the "changing sewage charge to tax" on regional GTFP. The empirical results suggest that EPT can help enhance GTFP, a finding that still holds after regional placebo tests, time placebo tests, and difference-in-differences robustness tests. The mechanism test demonstrates that EPT influences GTFP via the industrial structure impact and the green technological innovation effect. According to heterogeneity research, regions with a high level of marketization and financial growth are more significantly affected by environmental protection tax policy. This paper offers crucial empirical data for assessing the efficacy of environmental protection tax policy and enhancing the environmental tax system.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Environmental science and pollution research international
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
