Analysis Of Advantages And Effects Of Tax Policy To Promote Energy-saving And Emission Reduction

Since the eighties of the last century, the economy and industrial scale of China have increased rapidly. However, problems such as high resource consumption, low utilization and high wastage have seriously increased in industrial production. Although China's industrial output has increased substantially, the improvement was achieved by large consumption of resource. This extensive type of growth not only consumed large amount of energy, but also emitted large waste materials which include water, residue and contaminated air, resulting in serious pollution consequences. The same situation was experienced by many developed countries. Different countries undertook different actions which allowed the enterprise to effectively change their production methods, through improving the effective usage of the resources continuously. This would reduce the problem of excessive consumption of resources as well as the discharge of large pollutants. This paper will discuss about the experience of energy conservation and emission reduction in developed countries. In addition, the focus of this paper will compare the strength and weakness of various policies which can be used to implement it into energy-saving emission reduction policy of China.This paper demonstrates the process involving the following aspects:Firstly, based on a large number of literatures on tax policy regarding promotion of energy-saving emission reduction which summarized the theoretical basis of tax policy development process of China. Secondly, through the analysis of various policies implementation regarding the promotion of energy-saving emission reduction, devising an effective tax policy. Also, the establishment of production and consumption flow chart and mathematical model illustrating the scope and role of the principle on the energy-saving emission reduction tax policy and the characteristics of various tax measures by providing different point of views of the tax policy. Finally, suggestions on promoting the energy-saving emission reduction in China will be provided by summing the energy-saving implementation tax policies from foreign countries as well as the analysis of China's tax policy.