Study On The Effect Of Environmental Protection Tax On Scientific And Technological Innovation Of Heavy Pollution Enterprises

We have waitnessed the rapid development of China since the reform and opening up,urbanization and industrialization have accelerated,but at the same time,it also brings ecological and environmental problems.Coordinating the development of the economy and ecology is an urgent issue.Based on this,on January 1st,2018,the "Environmental Protection Tax Law of the People’s Republic of China" was officially implemented.For enterprises,to cope with the rising production cost caused by environmental protection tax,should they choose to reduce production capacity or choose innovative technology? This issue needs further research and discussion.This paper aims to study the policy incentive effect of environmental protection tax.By combing domestic and foreign research literature on related topics,relying on externality theory,Pigouvian tax theory and Porter hypothesis theory,this paper conducts theoretical analysis and puts forward corresponding research hypotheses.This papper choose the heavy polluting industries listed companies as samples to study the relationship between environmental protection tax and scientific and technological innovation of enterprises,as well as the adjustment of financial subsidies and internal control in this process.The research shows that: Firstly,environmental protection tax can play a positive policy effect,forcing heavy-polluting enterprises to innovate in science and technology;Secondly,financial subsidies can positively adjust the effect between environmental protection tax and enterprise scientific and technological innovation by expanding financing channels and transmitting superior signals.Thirdly,internal control positively adjusts the relationship between environmental protection tax and enterprise technological innovation by alleviating information asymmetry and exerting the effect of corporate governance.After using the instrumental variable method and propensity score matching method to solve the endogeneity problem,and performing a series of robustness tests such as replacing the explained variable,changing the regression interval,adjusting the effect group test,the research results remain unchanged.Further quantile regression results show that with the increase of the quantile level,the change of the unit of environmental protection tax will lead to an increase in the change unit of the enterprise’s technological innovation,so the incentive effect of the environmental protection tax is gradually strengthened.Therefore,this paper give the following suggestions to enhance the implementation effect of environmental protection tax policy.Firstly,strengthen the tax collection and management,improve the innovation incentive effect by improving the environmental protection tax policy,multi-department joint supervision and other paths.Secondly,improve the subsidy policy,implement the financial subsidy distribution mechanism and acceptance mechanism to ensure the continuity of the financial subsidy policy;Finally,improve the quality of internal control,strengthen the internal governance effect of the enterprise.