Environmental protection tax collection, financing constraints, and corporate green technology innovation

Abstract

The article empirically examines the relationship between environmental protection tax levy and enterprises’ green technology innovation and the moderating effect of financing constraints between the two with a sample of heavy polluters listed in A-share companies in Shanghai and Shenzhen from 2015 to 2021. It is found that the levy of environmental protection tax significantly promotes the green technology innovation investment of heavily polluting enterprises. It is further found that enterprise financing constraints have a negative moderating effect in the process of environmental protection tax stimulating enterprise innovation input. The article proposes to continue to strengthen the reform of environmental protection tax to form a collection model with both incentives and constraints and at the same time, to improve the financing efficiency of enterprises through green digital finance to alleviate the impact of financing constraints on enterprise technological innovation.