The nature of state-owned enterprises and collection of pollutant discharge fees: A study based on Chinese industrial enterprises

Abstract

Environmental protection needs to be carried out under governmental regulations. Collection of pollutant discharge fees is an important tool for the government to regulate and control pollutant discharge of the enterprises. Based on the Chinese Industrial Enterprises Database, this study analyzes the relationship between the ownership of enterprises and the collection of pollutant discharge fees from the perspective of micro-enterprises. Results show that, compared with other types of enterprises (including collective enterprises, private enterprises and foreign enterprises), state-owned enterprises (SOEs) pay higher pollutant discharge fees, which takes a larger proportion of their revenue. In terms of the payment amount, compared with non-SOEs, SOEs defined by registration status pay about 40,000 CNY more in fees, which constitutes a 20% higher proportion of their revenue. This conclusion can also be applied to more competitive industries such as the food and beverage manufacturing industries and the textile and paper industry. This study is a useful complement to other studies of environmental regulation and differences in enterprise ownership.