Fiscal Pressure, Tax Competition and Environmental Pollution
Junhong Bai (),
Jiayu Lu () and
Sijia Li ()
Additional contact information
Junhong Bai: Nanjing Normal University
Jiayu Lu: Nanjing Normal University
Sijia Li: Nanjing Normal University
Environmental & Resource Economics, 2019, vol. 73, issue 2, 431-447
Abstract As one of the strategies local governments adopt in response to fiscal stress, tax competition influences the social optimum level of public goods such as environment. This paper aims to investigate the mechanism of regional tax competitions from the perspective of financial stress. Recently, the effect of tax competition on environmental pollution rises gradually. Existing empirical researches mostly apply a fiscal decentralization-based perspective and ignore the spatial correlation between pollution and tax competition. Under the perspective of financial stress, this paper measures the impact of inter-regional enterprise income tax competition and value-added tax competition on environmental pollution of 30 provinces, using empirical analysis, and then estimates the direct effect, indirect effect and total effect based on it from year 2004–2014. It’s been found that inter-regional tax competition not only brings negative influence to local environment, but also makes the environmental quality become worse in spatial correlation regions. These findings are of enlightening politic revelations to further standardize enterprise tax competition among local governments, and to promote the sustainable development both in economy and environment.
Keywords: Fiscal pressure; Tax competition; Environmental pollution; Spatial econometrics (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10640-018-0269-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:73:y:2019:i:2:d:10.1007_s10640-018-0269-1
Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2
Access Statistics for this article
Environmental & Resource Economics is currently edited by Ian J. Bateman
More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().