The Chioce And Comparison Of The Environmental Fiscal Policy At Different Stages Of Business Cycle

The global financial crisis in 2008 has made the world economy suffer from the most serious challenge since the Great Depression in the 20 th century.In the background of the global economic recession,China's economy entered into the "new normal",with economic growth into a slowdown phase.At the same time,the deterioration of ecological environment and the serious drain of energy resources has become a outstanding issues on China's economic development.In response to the economic downturn,countries around the world including China are in search for a way of economic recovery to reconcile economic growth and protection of environment,striving to create a sustainable future in which economic development is in accordance with ecological resources.Business cycle fluctuation,as a norm of economic operation,has a significant impact on environmental quality.Regardless of whether the environmental quality is measured by carbon emissions or water or air pollution emissions,it changes as the business cycle fluctuates.As we all know,fiscal policy is an important policy tool to smooth the fluctuation of business cycle.As an important part of fiscal policy,environmental fiscal policy is also important for smoothing the fluctuation of economic cycle,promoting the protection of ecological environment and promoting the healthy and stable development of economy.However,are there any differences in the effect of environmental fiscal policy at different stages of the business cycle? From this point of view,this paper explores the similarities and differences of the effects of environmental fiscal policy at different stages of the business cycle,so as to provide corresponding policy recommendations for the new normal environmental fiscal policy.First of all,this paper introduces the theoretical foundation of environmental fiscal policy to protect the environment;Secondly,sorting out choices of environmental fiscal policy both in expansions and recessions;Thirdly,constructing the DSGE model of the heterogeneous intermediate manufacture,then we use China's macroeconomic data to estimate parameters in the model,and use the impulse response analysis and other tools to compare and analyze the effect of "pollution tax","pollution control investment" and "green energy expenditure" on output and environmental quality in expansions and recessions.We come to the following conclusions.First of all,in expansions,"pollution tax" can greatly enhance the level of environmental quality,but reduce output;"pollution control investment" and "green energy expenditure" can achieve economic and environmental "win-win" situation,but their environmental governance effect is not as good as "pollution tax".Secondly,"pollution tax" in recessions first reduces output but improve the environment quality,after a period of time to achieve a “win-win” situation;"pollution control investment" and "green energy expenditure" cannot achieve environmental governance effect as good as "pollution tax ",but always keep promoting output in a positive role in the long term.Thirdly,by comparison effects of the same kind of environmental fiscal policy in expansions and recessions,environmental governance effect of environmental fiscal policies in expansions is more significant than in recessions;but in terms of promoting the total output,environmental fiscal multipliers in recessions are bigger than in expansions.Last,the "Bayesian" shock decomposition in expansions and recessions shows that the "vendor technology shock" plays a major role in the total output volatility,"pollution control investment shock" and "green energy expenditure shock" also make a considerable part of the contribution on output.On the other hand,"pollution tax shock" is the main force of promoting environmental quality.In recessions,"vendor technology shock" and "pollution control investment shock" have a large effect on total output fluctuation,additionally,"pollution tax shock " and " pollution vendors technology shock" are main forces to promote environmental quality.