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

Reform and opening up have released the vitality of China’s economic development,and the manufacturing industry has played a major role in promoting China’s economic growth for a long time.However,in recent years,environmental pollution and climate change have been intensifying,and the manufacturing industry,as a high-energyconsuming and high-pollution industry,urgently needs to accelerate green development.According to "Made in China 2025",if we want to achieve the effect of fully implementing green manufacturing,we must strengthen the support of green technology and insist on placing innovation at the core of the overall process of manufacturing development.Environmental regulation is an important means to promote enterprises to implement environmental protection measures,and whether environmental protection tax,as a market-incentivized environmental regulation,can induce green innovation is a matter of concern.In order to study whether the implementation of environmental protection tax can induce green innovation of enterprises,this paper first explores the theoretical basis and mechanism of environmental protection tax affecting enterprise green innovation by combing the existing research,and then analyzes the current situation of environmental protection tax from the perspectives of institutional changes,taxation standards,implementation status and existing binding problems,and analyzes the current status of enterprise green innovation from the perspective of enterprise green innovation input and output,which paves the way for the empirical analysis in the following article.In the empirical part,based on manufacturing listed businesses in Shanghai and Shenzhen from from A-share 2015 to 2020,the effect of the environmental protection tax on businesses’ use of green innovation in 2018 was investigated using the triple difference model,and conducts a series of robustness tests.On the basis of benchmark regression,green innovation is divided into substantive green innovation and strategic green innovation for green innovation quality heterogeneity test,and then from the viewpoints of enterprise area,enterprise ownership,and enterprise scale,the diverse influence of environmental protection tax on enterprise green innovation is investigated.and finally the expansive test and analysis are carried out from the perspective of financing constraints,corporate social responsibility and information disclosure moderation.The results show that:(1)the implementation of environmental protection tax significantly promotes green innovation of enterprises,and the conclusion is still valid after a series of robustness tests;(2)There is heterogeneity in the impact effect of environmental protection tax law policies,and from the perspective of patent quality,environmental protection tax has a greater effect on promoting the substantive green innovation of enterprises;From a regional perspective,enterprises in developed eastern regions are more sensitive to environmental protection tax policies,followed by central China,while green innovation activities in western China are not significant;Compared to state-owned businesses,from the standpoint of business ownership,environmental protection tax has a greater role in promoting the green innovation level of non-state-owned enterprises;When seen from an enterprise size viewpoint,environmental protection tax has a more significant role in promoting largescale enterprises,and large-scale enterprises are more inclined to substantive green innovation,while small-scale enterprises have a certain degree of strategic green innovation behavior;(3)Through further scalability testing and analysis,it is clear that the influence of environmental protection taxes on businesses’ green innovation is negatively regulated by financial limitations,and corporate social responsibility and information disclosure have a positive regulating effect.Through the research of quasi-natural experiments,This study provides insight into how small-scale businesses’ green innovation is affected by environmental protection taxes,and has important reference significance for promoting green and low-carbon development.The following advice is offered in light of the study’s findings: develop the green tax system and establish the tax base in a reasonable manner;Improve preferential tax policies and improve the incentive mechanism for green innovation;Strengthen the awareness of corporate environmental responsibility and improve the ability of green innovation.