Mechanism and Empirical Study of Excise Tax Affecting Green Development in China’s Provincial Capitals—Mediating Effect Based on Technological Innovation

Abstract

Based on the panel data from 30 provincial capitals in China from 2005 to 2019, the level of green development in China’s provincial capitals was measured using the entropy value method, and their spatial distribution was analyzed using ArcGIS software. The impact of excise tax and technological innovation on the green development of China’s provincial capitals was examined by constructing a dynamic spatial Durbin model. This study shows that: (1) There are spatial differences in the green development level of the cities, with the overall characteristics of “east > central > west”; (2) The level of green development in Chinese cities has “time inertia” and positive “spatial spillover” effect; (3) Excise tax can promote green development in cities, and it exerts differential effects on green development in the eastern, central and western regions; (4) The results of the mediating effects model demonstrate that technological innovation mediates the relationship between consumption tax and green development in China’s provincial capitals.