Analysis Of Environmental Protection Tax Policy Based On CGE Mode

Environmental issues are related to the survival and development of human beings,and improving the ecological environment under the premise of maintaining economic growth and ensuring that living standards do not decline is the goal pursued by governments and scholars at home and abroad.China’s long-term implementation of command-and-control environmental governance methods is not conducive to the realization of this goal.Since January 1,2018,China has officially introduced environmental protection tax,and the environmental tax system has replaced environmental regulations such as sewage discharge fees on the historical stage.Based on the comprehensive analysis of the literature on the impact of environmental protection tax policies at home and abroad,this paper constructs a CGE model including environmental protection tax,uses the economic operation data in 2018 as a calibration,sets five policy scenarios,and finds through numerical simulation results:(1)The additional environmental protection tax will lead to a monotonous decline in social welfare level.High-polluting industries will reduce the cost of environmental protection tax per unit of output by expanding production capacity,and this disorderly expansion of production capacity will crowd out the development resources of other industries and reduce the welfare level of society as a whole.(2)In the process of raising environmental protection taxes,gross domestic product(GDP)rises first and then falls,and there is a limit to its growth rate,and excessive environmental protection taxes will reduce both GDP and social welfare levels.(3)When pollution declines,economies can raise social welfare levels by sacrificing a small amount of GDP.In the case of environmental protection tax,increasing agricultural imports or reducing mining and manufacturing exports is conducive to the improvement of social consumption demand and overall welfare levels.According to the simulation results,this paper proposes that the future direction of environmental protection tax reform should be targeted to optimize the collection standard and limit the production capacity of high-polluting industries.On this premise,full consideration should be given to the development level and emission characteristics of different industries,the development of low-emission industries should be encouraged,the transformation and upgrading of high-polluting industries should be supervised,and more efforts should be made to support the optimization of industrial structure.