Research On The Impact Of Environmental Protection Fee To Tax On Enterprise Competitiveness

The 20 th National Congress of the Communist Party of China’s report highlighted the need to "actively and steadily promote carbon peak and carbon neutrality" in 2020 to accelerate the green transformation of enterprises,as environmental issues have been intensifying,making green and low-carbon development the primary focus of global economic transformation.Most of the heavily polluting industries are pillar industries of the national economy and are crucial to the development of the national economy,so heavy polluting enterprises must comprehensively promote green and low-carbon development and enhance their competitiveness.In order to achieve energy conservation and emission reduction,China has continuously strengthened environmental regulations in recent years,for example,the Environmental Protection Tax Law implemented in 2018 follows the pollution discharge fee system,but has a stronger constraint effect on the pollutant discharge behavior of heavily polluting enterprises in terms of legal level and tax standards.So what role does the change of environmental protection fees and taxes play in the green transformation of heavy polluting enterprises and improve their competitiveness? How does it work? What are the asymmetric effects?This paper begins by sorting out the pertinent literature concerning environmental protection tax and enterprise competitiveness,and then introduces the research theme,based on the queries and examination presented.Secondly,a scrutiny of the alterations to China’s environmental protection tax system and the advancement of enterprise competitiveness was conducted.This paper proposes a research hypothesis that,when combined with the Porter hypothesis and other related theories,identifies the issues in the current competitiveness of heavily polluting enterprises.An empirical analysis of the effect of environmental protection fee to tax change on the competitiveness of heavily polluting enterprises is conducted through the construction of the double difference model at last.From the perspectives of property rights nature,regional disparity,and enterprise scale disparity,an asymmetric analysis is conducted on this basis.A model of mediation is fashioned to thoroughly scrutinize the mechanism and disparity between them.The results show that:(1)the total amount of environmental protection tax revenue in China has fluctuated in recent years;The overall competitiveness of China’s heavy polluting enterprises is higher than that of non-heavy polluting enterprises;The competitiveness level of heavy polluting enterprises,Chinese state-owned enterprises,enterprises in the western region,and large-scale enterprises has achieved rapid growth.(2)The change of environmental protection fees to taxes has an obvious role in promoting the competitiveness of heavily polluting enterprises,and this promotion effect is more obvious in state-owned enterprises,enterprises in the eastern and western regions and large-scale enterprises.(3)The change of environmental protection fees to taxes can effectively alleviate agency conflicts,thereby enhancing the competitiveness of heavily polluting enterprises,and the intermediary effect of agency conflicts is only established in state-owned enterprises,enterprises in the western region and large-scale enterprises.This paper proposes the following recommendations,based on the study’s findings: First,the government.Different regulatory policies for different regions can be formulated by government departments,contingent upon local conditions.Ensuring that state-owned enterprises meet the necessary environmental standards,and that non-state-owned enterprises receive government subsidies,is essential in order to meet the requirements of enterprises.Enhance the recompense and retribution system for large-scale businesses,and bolster policy backing for small-scale businesses.Secondly,the sector.Accelerate the implementation of mergers and reorganizations of heavily polluting industries,unify industry pollutant discharge standards,and raise entry thresholds.Finally,at the enterprise level.Stateowned enterprises and enterprises in the western region should improve their internal governance mechanisms to ease agency conflicts,while small-scale enterprises can expand their competitive advantages by establishing enterprise alliances.