Research on the Carbon Emission Reduction Effect of Green Taxation under China’s Fiscal Decentralization

Wei Dong, Xiaomi Hou and Guowei Qin ()
Additional contact information
Wei Dong: School of Economics, Anhui University, Hefei 230093, China
Xiaomi Hou: School of Economics, Anhui University, Hefei 230093, China
Guowei Qin: Anhui Forestry Bureau, Hefei 340000, China

Sustainability, 2023, vol. 15, issue 5, 1-19

Abstract: Using the spatial Durbin model, this study investigates, systematically, the link between green taxes and carbon emissions and the influence of green taxation on carbon emissions under fiscal decentralization in the context of the shift in performance evaluation of the local government. The results demonstrate a positive correlation at different stages of the performance appraisal. Fiscal expenditure has dual effects on carbon emissions at different stages of environmental assessments. It additionally strengthens the positive effects of green taxation on carbon emissions, with improvements in economic development. Further analysis demonstrates an interaction between fiscal decentralization and environmental taxes and fees, effectively reducing carbon emissions. The interaction between fiscal decentralization and other green taxes, except the environmental bonded tax, has no significant impact on emissions. This study finally proposes a series of policy recommendations to reduce carbon dioxide from the perspective of reasonable green tax formulation and fiscal decentralization. These include: increasing environmental taxes, modifying present resource and environmental protection taxes, adopting new environmental taxes gradually, enhancing the current tax system, and enhancing the “greening” of tax income. In addition, this study proposes reforms to the performance evaluation method within the present fiscal decentralization framework.

Keywords: green tax system; fiscal decentralization; carbon emission space; Durbin model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/5/4591/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/5/4591/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:5:p:4591-:d:1087525

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().