Research On The Influence Of Tax Incentives On Innovation Incentive Of Energy Conservation And Environmental Protection Industry

Energy conservation and environmental protection industry is the first strategic emerging industry established in China.Its development is not only conducive to the adjustment of China’s economic structure,but also can promote the construction of ecological civilization.Step by step to keep up with the growing environmental quality requirements of our people.At present,energy conservation and environmental protection industry has become the pillar industry of China’s economy,but there are still many problems in its development.For example,the overall size of enterprises is small,industrial development is unbalanced,and enterprise financing is difficult.And its energy conservation and environmental protection industry needs a lot of research and development,so it has greater risk and uncertainty.Only relying on the market mechanism can not make it break through the bottleneck of development,so government intervention is needed.Tax incentive policy is a method of government economic intervention.Theoretically,tax incentives have a positive incentive effect on energy conservation and environmental protection innovation.However,there is still room for improvement in the current stage of China’s tax incentive policy,and its actual innovation incentive effect on energy conservation and environmental protection industry needs to be studied.Therefore,this paper starts from the perspective of tax incentives to deeply understand the concept,characteristics and classification of energy conservation and environmental protection industry.Secondly,the relationship between tax incentives and innovation of energy conservation and environmental protection industry is explored by using economic theory and empirical analysis method,and the significance of its effect is tested.The specific methods are literature analysis,empirical analysis and other methods.This article from taian database and sina finance and economics network access to the deep Shanghai two city 60 a-share listed company financial data of energy conservation and environmental protection industry,including r＆d spending accounts for the proportion of revenue,the natural logarithm of patent output,tax incentives,asset-liability ratio,inventory turnover,return on equity and operating margin,to multiple regression empirical analysis with these data,Finally,it is concluded that tax incentives are directly proportional to the natural logarithm of r＆d investment and patent output of the energy conservation and environmental protection industry.That is,tax incentives have a positive incentive effect on the innovation of energy conservation and environmental protection industry.Moreover,the asset-liability ratio and operating gross profit rate of enterprises will have an impact on the innovation of enterprises.Another important conclusion is that by dividing China into east and west central regions,it is concluded that tax incentives have a more significant innovation incentive effect on the east region.Finally,in order to verify the correctness of the empirical method,variable substitution method is adopted in this paper and the same result is obtained.The suggestions are as follows: at the government level,tax preferential support and talent encouragement policies should be strengthened for enterprises’ early investment in R＆D;Expand financing channels for energy conservation and environmental protection industries;Formulating preferential tax policies suitable for the development of the central and western regions;We will establish a reasonable and sound system of preferential tax treatment.