Study On The Impact Of Tax Competition On Environmental Pollution In Beijing-Tianjin-Hebei And Its Surrounding Areas

Since the reform and opening up,China’s economy has developed rapidly,and environmental pollution has also followed.Beijing,Tianjin,Hebei and its surrounding areas have become one of the most polluted areas in China due to their special geographical location and the economic basis of heavy industry.Environmental pollution will not only affect the health of local people,but also inhibit economic development to a certain extent.According to the research of relevant scholars,the tax competition launched by local governments in order to attract enterprises and develop local economy may make local governments relax the control of environmental pollution,reduce the related costs of enterprises,and thus aggravate the degree of environmental pollution.Based on this,this paper takes Beijing,Tianjin,Hebei and the surrounding areas as an example to study whether there is tax competition among local governments in the region,and whether tax competition in the region will aggravate environmental pollution.Through this study,we can not only enrich the theory of tax competition in China,but also find ways to improve environmental pollution in Beijing,Tianjin,Hebei and surrounding areas from the perspective of tax competition.This is of great significance to environmental governance and healthy economic development in Beijing,Tianjin,Hebei and surrounding areas.Based on the above analysis,the main contents of this paper are as follows:The first part is introduction.The main content of this chapter:research background and significance,literature review,research content and methods,as well as possible innovations and shortcomings of the article.The second part is the theoretical analysis of tax competition and environmental pollution.The main contents of this chapter:Firstly,it introduces the connotation of tax competition,and analyses the causes of tax competition in China.The study finds that after the reform and opening up,the incomplete fiscal decentralization,unreasonable performance appraisal mechanism of officials and non-cooperative tax game among local governments have intensified the tax competition of local governments.Secondly,starting from the negative externality theory of environmental pollution,Pigou’s tax theory and inferior competition theory,this paper shows the influence of tax competition on environmental pollution.Theoretical analysis shows that because of the weak power of local government to regulate the environment and the urgent need for economic development,local governments are more likely to relax the control of the environment,reduce the related costs of enterprises,and eventually produce "inferior competition" for environmental pollution under the circumstances of tax competition.The third part is descriptive statistics of tax competition and environmental pollution in Beijing,Tianjin,Hebei and surrounding areas.The main contents of this chapter are as follows:Firstly,the existence of tax competition in Beijing,Tianjin and Hebei and its surrounding areas is tested by the tax response function,and it is found that there is imitative tax competition in Beijing,Tianjin and Hebei and its surrounding areas;secondly,the degree of tax competition in Beijing,Tianjin and Hebei and its surrounding areas is measured by cluster analysis;finally,the per capita industrial sulfur dioxide emissions and people in Beijing,Tianjin and Hebei and their surrounding areas are measured.The average discharge of industrial wastewater is two indicators to reflect the degree of environmental pollution in this area.The fourth part is the empirical analysis of environmental pollution caused by tax competition in Beijing,Tianjin,Hebei and surrounding areas.The main content of this chapter:This paper makes an empirical analysis of the impact of tax competition on environmental pollution in Beijing,Tianjin,Hebei and surrounding areas.Empirical analysis shows that tax competition in Beijing,Tianjin,Hebei and surrounding areas has a significant positive effect on environmental pollution,that is,the increase of tax competition will aggravate environmental pollution.The fifth part,conclusions and suggestions.The main content of this chapter:Based on the theoretical analysis and empirical analysis of the impact of tax competition on environmental pollution,the conclusion of this paper is drawn.Combining with the tax competition in Beijing,Tianjin,Hebei and the surrounding areas,this paper puts forward relevant suggestions from the angle of standardizing the tax competition degree and improving regional environmental pollution.