IDEAS home Printed from https://ideas.repec.org/a/aiy/jnljtr/v10y2024i2p258-270.html
   My bibliography  Save this article

Fiscal Effects of Environmental Tax Reform: A Comparative Analysis of China, Germany and the United Kingdom

Author

Listed:
  • Ye Chenghao
  • Igor A. Mayburov
  • Wang Ying

Abstract

This study aims to analyze the impact of environmental tax reforms on fiscal revenue. By conducting a comparative analysis of China, Germany, and the United Kingdom, the study explores the implementation effects and fiscal implications of environmental tax reforms in different countries. It selects a sum of eight taxes related to environmental protection in China for panel data on environmental tax revenue. These taxes include the urban maintenance and construction tax, vehicle purchase tax, urban land use tax, resource tax, environmental protection tax (known as the pollutant discharge fee before the 2018 reform), vehicle and vessel tax, ship tonnage tax, and tobacco tax. This selection is analyzed in comparison with environmental taxes in Germany and the United Kingdom, constructing a panel data of 30 observational samples from 2013 to 2022 on the total tax revenue growth rate and environmental tax revenue growth rate in the three countries for empirical analysis. Through linear regression and individual fixed effects model analysis, it was found that the fiscal effects of environmental tax reforms manifest as follows: there is unobservable heterogeneity in environmental taxes across different countries and significant fixed effects between countries. The growth rate of total tax revenue has a significant positive impact on the growth rate of environmental tax revenue. For every 1 percentage point increase in the growth rate of total tax revenue, China’s environmental tax revenue growth rate increases by approximately 0.8489 percentage points, with an average growth in environmental tax revenue of about 0.9797 percentage points. This provides a reference for China to achieve the goal of high-quality economic growth from the perspective of continuous reform and development of environmental taxes.

Suggested Citation

  • Ye Chenghao & Igor A. Mayburov & Wang Ying, 2024. "Fiscal Effects of Environmental Tax Reform: A Comparative Analysis of China, Germany and the United Kingdom," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 10(2), pages 258-270.
    • Handle: RePEc:aiy:jnljtr:v:10:y:2024:i:2:p:258-270
    DOI: https://doi.org/10.15826/jtr.2024.10.2.168
    as

    Download full text from publisher

    File URL: https://taxreform.ru//fileadmin/user_upload/site_15907/2024/04-Chenghao_et_al.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.15826/jtr.2024.10.2.168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Jinzhu & Liu, Yu & Zhou, Meifang & Chen, Boyang & Liu, Yawen & Cheng, Baodong & Xue, Jinjun & Zhang, Wei, 2022. "Regulatory effect of improving environmental information disclosure under environmental tax in China: From the perspectives of temporal and industrial heterogeneity," Energy Policy, Elsevier, vol. 164(C).
    2. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2014. "From regressive pollution taxes to progressive environmental tax reforms," European Economic Review, Elsevier, vol. 69(C), pages 126-142.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.
    2. Stephie Fried & Kevin Novan & William B. Peterman, 2021. "Recycling Carbon Tax Revenue to Maximize Welfare," Finance and Economics Discussion Series 2021-023, Board of Governors of the Federal Reserve System (U.S.).
    3. Xiao, He, 2022. "Environmental regulation and firm capital structure dynamics," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 770-787.
    4. Mireille Chiroleu-Assouline, 2015. "Can environmental taxation in France really become ecological? Current situation and conditions of acceptability," PSE Working Papers halshs-04198162, HAL.
    5. Frederick Ploeg, 2021. "Carbon pricing under uncertainty," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(5), pages 1122-1142, October.
    6. Bas (B.) Jacobs & Rick (F.) van der Ploeg, 2017. "Should Pollution Taxes Be Targeted At Income Redistribution?," Tinbergen Institute Discussion Papers 17-070/VI, Tinbergen Institute.
    7. World Bank Group, 2018. "Strategic Use of Climate Finance to Maximize Climate Action," World Bank Publications - Reports 30475, The World Bank Group.
    8. Karine Constant & Natacha Raffin, 2016. "Environnement, croissance et inégalités : le rôle particulier du canal de la santé," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 9-29.
    9. Klenert, David & Mattauch, Linus & Edenhofer, Ottmar & Lessmann, Kai, 2018. "Infrastructure And Inequality: Insights From Incorporating Key Economic Facts About Household Heterogeneity," Macroeconomic Dynamics, Cambridge University Press, vol. 22(4), pages 864-895, June.
    10. Aubert, Diane & Chiroleu-Assouline, Mireille, 2019. "Environmental tax reform and income distribution with imperfect heterogeneous labour markets," European Economic Review, Elsevier, vol. 116(C), pages 60-82.
    11. Rausch, Sebastian & Schwarz, Giacomo A., 2016. "Household heterogeneity, aggregation, and the distributional impacts of environmental taxes," Journal of Public Economics, Elsevier, vol. 138(C), pages 43-57.
    12. Stephie Fried & Kevin Novan & William B. Peterman, 2024. "Understanding the Inequality and Welfare Impacts of Carbon Tax Policies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 11(S1), pages 231-260.
    13. Carmen Callao & M. Pilar Latorre & Margarita Martinez-Núñez, 2021. "Understanding Hazardous Waste Exports for Disposal in Europe: A Contribution to Sustainable Development," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    14. Jacobs, Bas & van der Ploeg, Frederick, 2019. "Redistribution and pollution taxes with non-linear Engel curves," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 198-226.
    15. Pereira, Alfredo & Pereira, Rui, 2017. "The Role of Electricity for the Decarbonization of the Portuguese Economy - DGEP Technical Report," MPRA Paper 84782, University Library of Munich, Germany.
    16. Mireille Chiroleu-Assouline, 2022. "Rendre acceptable la nécessaire taxation du carbone. Quelles pistes pour la France ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 15-53.
    17. Bingyue Wan & Lixin Tian & Wenbin Zhang & Guangyong Zhang, 2023. "Environmental effects of behavior growth under green development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 10821-10855, October.
    18. Yakut, Aykut Mert & de Bruin, Kelly, 2023. "The importance of having a more realistic welfare transfer determination rule: A CGE analysis for Ireland," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1310-1325.
    19. Cheng, Fei & Chen, Tong & Chen, Qiao, 2020. "Rewards based on public loyalty program promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 378(C).
    20. Filippo Maria D’Arcangelo & Ilai Levin & Alessia Pagani & Mauro Pisu & Åsa Johansson, 2022. "A framework to decarbonise the economy," OECD Economic Policy Papers 31, OECD Publishing.

    More about this item

    Keywords

    environmental tax reform; China; Germany; United Kingdom; environmental tax revenue; individual fixed effect model;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnljtr:v:10:y:2024:i:2:p:258-270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.