Fiscal Incentives And Environmental Pollution Improvement

A good ecological environment is the most universal welfare of people’s livelihood.Report of the 20 th CPC National Congress points out that we should promote the prevention and control of environmental pollution,and actively and steadily promote the carbon peak carbon neutral.In the past,the traditional industrial dependence on energy is too high,and the high energy consumption,high pollution development model has brought enormous pressure on China to reduce emissions,environmental protection,energy conservation and emission reduction has pressed the accelerator button.As the foundation and important pillar of national governance,finance is an important regulator and stabilizer of the state in the political,economic,and public service fields,and the optimization of the fiscal incentive system to reduce environmental pollution in the context of "double carbon" is a key issue to be addressed at this stage.This article uses the data of industrial enterprises in China from 2007 to 2013 and matches them with the enterprise pollution database to evaluate the impact of local government fiscal incentives on environmental pollution under the policy shock using a double difference model as a quasi-natural experiment.Through a series of robustness tests,mechanism analysis,and heterogeneity exploration,we demonstrate the multiple effects of local government fiscal incentives on enterprise pollution emissions.The main findings of the article are: first,the enhancement of local fiscal incentives after the implementation of the policy leads to a decrease in the intensity of enterprises’ pollution emissions and is manifested as a reduction in the absolute amount of enterprises’ pollution emissions,which has no effect on enterprises’ output;second,promoting the strengthening of environmental regulations and green technological progress is an important channel for fiscal incentives to play a green role in guiding enterprises to reduce pollution;third,the pollution reduction effect of the policy in Third,the pollution reduction effect of the policy is more significant in the "environmental regulation pilot area",the "two high" industries,the promotion of weak incentives,the high degree of marketization,and the areas with small fiscal revenue and expenditure gaps.Policy recommendations include: First,continue to improve the reform of China’s fiscal system and mechanisms,and improve the design of incentive-compatible mechanisms.Second,increase the intensity of environmental regulation and create a comprehensive and diversified policy regulatory system.Third,improve the market incentive mechanism for the transformation of scientific and technological achievements,and accelerate the green transformation and upgrading of enterprises.The article reveals the key path of pollution emission of micro subjects under the influence of local government behavior after the implementation of the research policy from the perspective of fiscal incentives,and provides experience reference and policy reference to help reduce pollution and carbon under the new development pattern and achieve the goal of carbon peak carbon neutrality.