Research On The Impact Of Environmental Protection Tax On Green Technology Innovation Of Enterprises

Since the reform and opening up,the ecological environment has been seriously affected by the rapid economic growth.Gradually,the government has realized the seriousness of environmental pollution and put forward the idea that lucid waters and lush mountains are invaluable assets.Since enterprises,as the main object of environmental pollution,should bear the main responsibility,the government uses environmental regulation to control enterprises’ emission reduction and environmental protection.As one of the most important means of environmental regulation,the pollutant discharge charging system realized the smooth transformation of "fee to tax" in 2018.Since then,the environmental protection tax has solved the problems of inflexible law enforcement and poor compulsory under the previous pollutant discharge fee system.The problem of environmental pollution can be solved from the source.Whether green technology innovation is affected by environmental protection tax needs to be empirically tested.Based on Porter’s hypothesis,externality theory and double dividend theory,this paper examines the impact of environmental protection tax on enterprises’ green technology innovation by studying relevant literatures at home and abroad,applying two-way fixed effect model and using relevant data of 30 Chinese provinces except Xizang and Hong Kong,Macao and Taiwan from 2011 to 2020.This paper also further studies the heterogeneity analysis of enterprises under different tax burdens and in different regions.Finally,the conclusion is drawn: first,environmental protection tax significantly promotes enterprises’ green technology innovation.Second,environmental protection tax can promote green technology innovation of enterprises with moderate tax burden.Thirdly,environmental protection tax can promote green technology innovation of enterprises in eastern China.Based on the results of empirical analysis,some suggestions are put forward to increase the effectiveness of environmental protection tax: first,improve the tax elements of environmental protection tax.Second,we should optimize preferential tax policies to reduce the squeeze on funds.Third,strengthen tax collection and administration,improve the tax collection and administration system.Fourth,actively promote environmental protection and improve market effectiveness.