The green effect of digital transformation: The impact of digital transformation in fiscal and taxation on regional green development

Abstract

As green sustainable development has become a major development goal in the world today, it is very important to analyze the impact of digital reform of finance and taxation on the green economy. Based on panel data from 30 provinces in China from 2005 to 2020, our study explores the impact of fiscal and tax digitization on green growth by taking China's “Golden Tax Phase III Project” as an example. First, the results of this study show that the digital transformation of fiscal and taxation will curb regional carbon emissions and promote regional green development through the green technology innovation effect and green finance development effect. Second, the dynamic regression results of this study prove that with the increase in regional carbon emissions, the green development effect brought by the digital transformation of fiscal and taxation will show a gradually weakening trend. Finally, our research also found that due to different levels of new energy development, government environmental regulation intensity, industrial development level, economic development level and other aspects of different cities, the green development effects brought by the digital transformation of finance and taxation are also different. Our study adds to the body of knowledge on fiscal and tax reform and ecological growth, validates the beneficial impact of these changes on local green development, and expands the scope of current research.