1. Green technology innovation effect of China's environmental protection fee-to-tax reform: analysis based on the perspective of tax burden classification.
- Author
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WANG Hui and QIU Lei
- Subjects
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TAX incidence , *TAX incentives , *ECONOMIC development , *ENVIRONMENTAL impact charges , *TAX base , *GREEN technology - Abstract
Based on the interprovincial differences in China's environmental protection tax, it is of great practical significance for economic transformation and upgrading, as well as ecological civilization construction, to evaluate whether China's environmental protection fee-to-tax reform (CEPFR) effectively enhances corporate green technology innovation by means of tax burden classification. This study constructed a quasi-natural experiment based on typical facts of the formal implementation of the Environmental Protection Tax Law of the People's Republic of China in 2018. It utilized panel data from Chinese A-share listed companies between 2013 and 2022 and employed the difference-in-differences method to examine the impact of CEPFR on corporate green technology innovation and to evaluate the differential impact of varying degrees of tax burden increases on such innovation. The research results showed that: 1 CEPFR significantly promoted corporate green technology innovation, and this conclusion remained robust after a series of robustness tests. 2 The tax burden classification test found that the green innovation incentive of CEPFR primarily benefited from the tax burden increases at the middle and low levels rather than at the high level. 3 Heterogeneity analyses demonstrated that the foundation established by previous innovation and the pressure from media attention were more conducive to expanding the driving effects of tax burden increases at the middle and low levels on corporate green technology innovation. In addition, the green innovation incentives of tax burden increases primarily targeted substantive innovations such as invention patents, which could promote both the quantity and quality of corporate green technology innovation. Furthermore, tax burden increases could encourage enterprises to actively engage in green innovation cooperation. 4 A high-level environmental tax burden could improve the production efficiency of enterprises, but it could find it difficult to promote corporate green transformation. In contrast, the tax burden increases at the middle and low levels could optimize the green production efficiency of enterprises. From the perspective of tax burden classification, this study provides microevidence on the implementation effects of CEPFR and offers theoretical support and empirical references for local government to formulate appropriate tax regulatory intensity. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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