Green Innovation Effect And Influence Mechanism Of The Reform Of Environmental Protection Fee To Tax

As is known to us all,our country’s economy has advanced with seven-league strides since the reform and opening up,but the environmental pollution situation has become increasingly severe at the same time.The pollution discharge charging system has been continuously improved in China for 40 years,however,several prominent problems seriously limit its role in pollution control and environmental protection.Everyone in society is actively exploring efficient measures to push forward the ecological environment on which we depend while promoting sustainable economic development.As an effective means for the government to regulate the economy and protect the ecological environment,environmental tax is increasingly important.Faced with the increasingly serious pressure of resources and environment in China,it is an inevitable trend to set up an environmental protection tax law that is more mandatory and can play a more restrictive role.With the close attention of the whole society,on January1,2018,China ultimately set about implementing the Environmental Protection Tax Law.Can the enforcement of the policy of changing environmental protection fee to tax can boost the environment-friendly innovation of enterprises and bring about the anticipated effect of the policy? If so,what kind of mechanism will influence it to achieve coordinated development?Under what circumstances will the policy have different effects?So as to explore the above-mentioned problems,this paper regards the implementation of the environmental protection tax law in China as an external policy shock,selects the data of A-share listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange from2014 to 2020,and uses the double difference method to investigate the effect and internal influence path of the environmental protection tax reform policy on enterprise green innovation.The research indicates that the application of the policy facilitates the green innovation of enterprises,and the empirical results keep unanimous with the conclusions of the article even after a host of robust examinations.Exploring its influence mechanism,it is found that on the one hand,changing environmental protection fee into tax forces enterprises to augment environmental protection investment and encourage green innovation;on the other hand,it alleviates financing constraints and promotes green innovation;Further research shows that,compared with green invention patents,provincial enterprises that choose to keep the tax burden basically unchanged and non-state-owned enterprises,when the patent type is green utility model patent,the enterprise has raised the tax burden standard and the enterprise type belongs to state-owned enterprises,the policy of changing fees into taxes has more strongly promoted the green innovation of enterprises.The final results of this paper strengthen the research on the economic consequences of transforming environmental protection fee to tax and the documents research on the ascendancy factors of enterprises’ green innovation,which provides a momentous reference for China to better carry out environmental tax policies and realize sustainable development.