Can “environmental protection fee to tax” reduce carbon emissions? Evidence from China

Jiangze Du, Zhiwei Li, Guoping Shi and Bin Wang

Finance Research Letters, 2024, vol. 62, issue PB

Abstract: This paper investigates the impact of “environmental protection fee to tax” policy on carbon emissions, officially implemented on January 1, 2018 in China. Using a novel dataset covering Chinese firms from 2015 to 2020, our findings reveal a significant reduction in carbon emissions attributable to the “environmental protection fee to tax” policy. Additional analysis suggests that enhancing green technological innovation and executives environmental awareness can facilitate the positive impacts of “environmental protection fee to tax” policy on carbon emissions. Notably, heterogeneity tests underscore that the policy's adverse effects are more pronounced among non-state-owned enterprises, companies located in eastern regions, and small-scale enterprises in China.

Keywords: Environmental protection fee to tax; Carbon emissions; Green technological Innovation; Sustainable development (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002149

DOI: 10.1016/j.frl.2024.105184

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