The Effects of Environmental Tax Revenue on Sustainable Development in China

Bingjie Wang, Chong Xu, Ding Li, Yinyin Wu () and Yaqi Zhang
Additional contact information
Bingjie Wang: School of Public Finance and Taxation, Southwestern University of Finance and Economics, Chengdu 610074, China
Chong Xu: School of Public Administration, Southwestern University of Finance and Economics, Chengdu 610074, China
Ding Li: School of Public Administration, Southwestern University of Finance and Economics, Chengdu 610074, China
Yinyin Wu: School of Public Administration, Southwestern University of Finance and Economics, Chengdu 610074, China
Yaqi Zhang: Business School, The University of Hong Kong, Hong Kong, China

IJERPH, 2023, vol. 20, issue 6, 1-17

Abstract: Despite extensive studies focused on environmental tax revenue (ETR) on the driver and linkage with socioeconomic variables over time, an in-depth investigation on the spatiotemporal driver and intrinsic characteristics (e.g., convergence and complex network) is in need, providing valuable information on formulating better environmental tax policy towards sustainable development. Therefore, the study comprehensively analyzed the spatiotemporal driver, convergence trend, and complex network of provincial ETR in a case of China over 2000–2019 by using temporal and spatial logarithmic mean Divisia index models (LMDI), convergence models, and social network analysis, respectively. We found that, first, two convergence clubs of ETR for China’s provinces over the period were found. Second, GDP per capita and tax intensity were the positive and negative drivers contributing the increase in ETR. Third, within differences in tax intensity and GDP per capita, as well as the differences in population and GDP per capita, were the main drivers widening the overall ETR gap. Fourth, the original hierarchical ETR spatial correlation structure has changed, while provinces exhibited certain degrees of heterogeneity in terms of ETR spatial association network. The study highlights that ETR plays a significant role in maintaining sustainable development and thus suggests that more importance of environmental tax policies at various levels should be attached.

Keywords: environmental tax revenue; sustainable development; China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1660-4601/20/6/5022/pdf (application/pdf)
https://www.mdpi.com/1660-4601/20/6/5022/ (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:jijerp:v:20:y:2023:i:6:p:5022-:d:1095182

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

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