A Study On The Economic Effects Of Green Fiscal And Tax Policies

Energy,committed to promoting economic growth,in contrast,could be a stumbling block to restrict its development.Owing to the fact that energy becomes increasingly vital and its scarcity gets more serious nowadays,many issues caused by energy production and consumption have become the focus of social attention.In the long run,the economic society needs the support of energy,but energy consumption causes pollution,whereas pollution does harm the material basis which slashes the speed of development.By and large,there is a "dialectical" relationship among energy,environment and social-economic development.On the basis of this "dialectical" relationship,to promote energy and environment sustainable development through the implementation of green fiscal and tax policies has become the general consensus of the government and the academic circles.Therefore,it has theoretical and practical significance to study and explore the economic effects of green fiscal and tax policies.This paper uses dynamic general equilibrium model to simulate the influence of energy consumption on environmental pollution and economic growth.Based on China's provincial panel data,this paper establishes simultaneous equations model,and adopts 3SLS methodology to empirically analyze the relationship among energy consumption,economic growth and pollution emissions.On this basis,the policy means such as resource tax,environmental tax and green R&D subsidy are included into the dynamic general equilibrium model,which simulates the economic effects of green fiscal and tax policies under different policy objectives,and analyzes and explains the influence factors and effects of different types of green fiscal and tax policies on economic growth,pollution accumulation and social welfare.The results are as follows:(1)there is an inverted U-shaped relationship between energy consumption and economic growth,and there is no difference in curve shape due to the different levels of regional economic development.Therefore,in the area with higher level of economic growth,the energy consumption at the inflection point will be lower,and the environmental pollution caused by unit energy consumption will be worse,and that will lead to greater restraining effect on economic growth;(2)considering both resource tax and environment tax with the maximization of social welfare and economic growth as policy objectives,the optimal resource tax rate is lower than the optimal environmental tax rate.The level of economic growth and social welfare under the optimal resource tax rate is higher than the optimal environmental tax rate,but the level of pollution emission is also higher.(3)considering the long-term goal of economic growth and environmental quality,early implementation of green R&D subsidy policy will help to achieve the double dividend of increasing the level of economic growth and reducing environmental pollution;(4)considering the relationship between the time point selection of green R&D subsidy policy,economic development and pollution emission level,later implementation of green R&D subsidy policy contributes to economic growth in the short term,while earlier implementation of green R&D subsidy policy contributes to long-term economic growth and the lowest cumulative level of pollution.Based on the results mentioned above,conclusions are as follows:(1)energy consumption leads to environmental pollution,which also hinders long-term economic growth through the cumulative effect of pollution emissions.The eastern region has already crossed the inflection point of the inverted U-shaped curve,and excessive energy consumption will restrain economic growth.The central region is approaching the inflection point of the inverted U-shaped curve,and the promoting effect of energy consumption on economic growth is low.The western region has not yet crossed the inflection point of the inverted U-shaped curve,and energy consumption will promote economic growth;(2)resource tax and environment tax have different effects on economic growth,social welfare and pollution emission,thus corresponding tax policies should be selected according to the target.When economic growth and social welfare maximization are the policy objectives,the implementation of resource tax is more conducive to achieving the optimal allocation of energy.With the policy goal of lower pollution emission,the implementation of environment tax is more conducive to the realization of the optimal allocation of energy;(3)considering long-term goals of economic growth and environmental quality,earlier implementation of dynamic green R&D subsidy policy can promote long-term economic development,and at the same time,the cumulative level of environmental pollution is the lowest,which is conducive to achieving the double dividend of economic growth and environmental pollution reduction.The innovations of this paper are as follows:(1)based on the perspective of income and expenditure of green fiscal and tax policy,the resource tax,environment tax and green R&D subsidy are incorporated into energy conservation and environmental protection,and a dynamic general equilibrium model is constructed to simulate the economic effects of green fiscal and tax policies under different policy objectives;(2)defining the concept of resource tax and environment tax,and analysing the cumulative impact of both on economic growth,social welfare and pollution.It is found that implementing resource tax is better to achieve the goal of economic growth and social welfare maximization,while implementing environment tax is better to achieve the goal of pollution emission minimization;(3)In-depth analyzing green R&D subsidy for energy companies from the situation of non-subsidy,strict subsidy and dynamic subsidy.The study found that compared with the non-subsidy and strict subsidies,dynamic subsidy policy is conducive to the long-term development of the economy and society and the accumulation of environmental pollution is minimal,and early implementation of green R&D subsidy policy will help to achieve the double dividend of increasing the level of economic growth and reducing environmental pollution.