 Environmental regulation and corporate tax avoidance: A quasi-natural experiment based on the eleventh Five-Year Plan in ChinaYong Geng, Wei Liu, Kai Li and Hanshu Chen Energy Economics, 2021, vol. 99, issue C Abstract: Taking the 11th Five-Year Plan in China as a quasi-natural experiment, this paper explores the impact of environmental regulation on corporate tax avoidance based on firm-level data and the difference-in-difference-in-differences (DDD) method. We find that: (1) Environmental regulation has a significant positive effect on corporate tax avoidance, and several robustness checks confirm our findings; (2) Heterogeneity analysis show that this effects are more significant for private firms and for firms in the regions with less fiscal stress and that in the east part of China; (3) Two channels identified are the operating risks and financing constraints; (4) Further analysis show that the 11th Five-Year Plan has spillover effects on firms in low-emission industries. The increased tax avoidance of firms in high-emission industries contributes to a raised tax burden on firms in low-emission industries. Our study provides implications for the formulation of environmental policies in developing countries Keywords: Environmental regulation; Sustainable development; Corporate tax avoidance; Corporate social responsibility; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:99:y:2021:i:c:s0140988321002188 DOI: 10.1016/j.eneco.2021.105312 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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