Study On The Impact Of Environmental Tax On The Performance Of Heavy Polluting Enterprises

With the development of society,countries gradually began to pay attention to environmental problems.After the founding of New China,our country has vigorously developed the heavy industry and adopted extensive development mode to promote the economy.Such excessive destruction of the environment and consumption of resources has made our country pay a heavy price.Now,As the economy shifts from high-speed development to high-quality development,and people’s requirements for quality of life gradually improve,people are more eager for a healthy and environmentally friendly lifestyle,more willing to consume green,environmentally friendly,healthy products,can no longer use the past development model.Therefore,the protection of environment and saving of resources are gradually put into consideration in the formulation of policies.In 2018,the environmental protection tax was officially implemented,and the environmental protection tax system,including resource tax,urban land use tax and vehicle and ship tax,has been continuously improved.The implementation of environmental protection tax and the improvement of environmental protection tax system will increase the tax burden of enterprises,thus reducing corporate profits and inhibiting the improvement of corporate performance.However,on the other hand,the imposition of environmental protection tax will prompt enterprises to adjust their own development strategies in order to reduce the impact of tax burden and pollution cost.Enterprises may actively change their production mode and produce green and healthy products,thus promoting the improvement of enterprise performance.Therefore,This paper is based on the theory of externality and Porter’s hypothesis,exploring the impact of environmental protection tax on the performance of heavy polluting enterprises.This paper takes the heavily polluting A-share listed companies in Shanghai and Shenzhen from 2011 to 2020 as an example.First,the Hausmann test was performed.The result shows that fixed effect model should be used to study the relationship between environmental tax and heavy polluting enterprises.Then,the mediating role of innovation input is tested by the step-by-step test method,and the robustness test is conducted by replacing explained variables and eliminating part of the data.This paper analyzes the heterogeneity of heavy polluting enterprises by regional and property rights.The final results show that environmental protection tax can promote the performance improvement of heavy polluting enterprises,and innovation input plays an intermediary role.Environmental protection tax promotes the performance improvement of enterprises by promoting the increase of innovation input.In addition,through the heterogeneity analysis,it is found that compared with the central regions and western regions,the environmental protection tax in the eastern region has a more significant promoting effect on the performance of heavy polluting enterprises.Moreover,environmental protection tax has a more obvious promoting effect on the performance of state-owned enterprises.According to the research conclusions,the following countermeasures and suggestions are put forward: First,we should further improve the environmental tax policy to help improve the performance of heavy polluting enterprises,including expanding the scope of environmental tax collection,including carbon dioxide and construction noise,which have a serious impact on environmental pollution and have not been included in the scope of environmental tax collection.And we need to improve the preferential policies of environmental protection tax,especially to gather strength to formulate a new round of preferential policies and corresponding subsidies for the underdeveloped central and western regions.In addition,we will strengthen tax collection and administration.Second,we need to make efficient and rational use of the revenue from environmental protection tax.We need to take the money from the people and put it to use.Such funds can be used to control environmental pollution,so as to improve people’s living environment and the production environment of enterprises.In addition,it can also be used to establish a special fund to subsidize enterprises with financing difficulties.Third,the innovation incentive policy should be improved.Firstly,the publicity of heavy polluting enterprises should be strengthened to make them realize the importance of innovation.Secondly,since innovation is an activity that requires a large amount of capital investment,it is necessary to encourage and support active innovative enterprises in terms of capital and introduce relevant policies to encourage innovation.Fourth,we should improve our country’s green environmental protection tax system,let environmental protection tax and other types of taxes related to environmental protection establish a complete system,so as to better play the role of protecting the environment and promoting the green and healthy development of enterprises.