IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i24p16749-d1002457.html
   My bibliography  Save this article

Study on the Impact of Environmental Tax on Industrial Green Transformation

Author

Listed:
  • Yang Shen

    (Institute of Quantitative Economics, Huaqiao University, Xiamen 361021, China)

  • Xiuwu Zhang

    (Institute of Quantitative Economics, Huaqiao University, Xiamen 361021, China)

Abstract

Tax revenue is one of the essential means through which the government controls the macro-economy and plays a vital role in promoting environmental protection and sustainable development. This study takes Chinese panel data from 2004 to 2020 as sample observations, uses the SBM-GML index method to measure industrial green total factor productivity, and then uses econometric methods such as the two-way fixed effects model and instrumental variable method to analyze the impact of an environmental tax on industrial green transformation. It is found that the generalized environmental tax represented by vehicle and vessel tax, resource tax, and urban land use tax has a significant positive effect on industrial green transformation. After a series of robustness tests and the exclusion of endogeneity, this conclusion remains valid. The research shows that credit governance, the agglomeration of producer service, and their co-agglomeration with manufacturing are important adjustment mechanisms. Among them, credit management is special and compulsory, greatly restricting the environmental pollution behavior of industrial enterprises, and encourages enterprises to make green investments and to actively improve production processes.

Suggested Citation

  • Yang Shen & Xiuwu Zhang, 2022. "Study on the Impact of Environmental Tax on Industrial Green Transformation," IJERPH, MDPI, vol. 19(24), pages 1-18, December.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:24:p:16749-:d:1002457
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/24/16749/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/24/16749/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    2. Don Fullerton & Wenbo Wu, 2002. "Policies for Green Design," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 5, pages 102-119, Edward Elgar Publishing.
    3. Mardones, Cristian & Cabello, Martin, 2019. "Effectiveness of local air pollution and GHG taxes: The case of Chilean industrial sources," Energy Economics, Elsevier, vol. 83(C), pages 491-500.
    4. Brian Chi-ang Lin & Siqi Zheng & Maximilian Auffhammer & Weizeng Sun & Jianfeng Wu & Siqi Zheng, 2016. "The Decomposition And Dynamics Of Industrial Carbon Dioxide Emissions For 287 Chinese Cities In 1998–2009," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 460-481, July.
    5. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    6. Daniel L. Millimet & Jayjit Roy, 2016. "Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(4), pages 652-677, June.
    7. Karydas, Christos & Zhang, Lin, 2019. "Green tax reform, endogenous innovation and the growth dividend," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 158-181.
    8. Enrico Maria de Angelis & Marina Di Giacomo & Davide Vannoni, 2019. "Climate Change and Economic Growth: The Role of Environmental Policy Stringency," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    9. Lu Zhang & Renyan Mu & Nigatu Mengesha Fentaw & Yuanfang Zhan & Feng Zhang & Jixin Zhang, 2022. "Industrial Coagglomeration, Green Innovation, and Manufacturing Carbon Emissions: Coagglomeration’s Dynamic Evolution Perspective," IJERPH, MDPI, vol. 19(21), pages 1-19, October.
    10. Wayne B. Gray & Ronald J. Shadbegian, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-256, June.
    11. Jaume Freire-González & Mun S. Ho, 2018. "Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model," Sustainability, MDPI, vol. 10(2), pages 1-18, February.
    12. Wesseh, Presley K. & Lin, Boqiang & Atsagli, Philip, 2017. "Carbon taxes, industrial production, welfare and the environment," Energy, Elsevier, vol. 123(C), pages 305-313.
    13. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    14. repec:bla:jindec:v:46:y:1998:i:2:p:235-56 is not listed on IDEAS
    15. Lei Wang & Yu Yan, 2022. "Environmental Regulation Intensity, Carbon Footprint and Green Total Factor Productivity of Manufacturing Industries," IJERPH, MDPI, vol. 19(1), pages 1-14, January.
    16. Fendrich, Arthur Nicolaus & Barretto, Alberto & Sparovek, Gerd & Gianetti, Giovani William & da Luz Ferreira, Jaqueline & de Souza Filho, Carlos Frederico Marés & Appy, Bernard & de Guedes, Carlos Mar, 2022. "Taxation aiming environmental protection: The case of Brazilian Rural Land Tax," Land Use Policy, Elsevier, vol. 119(C).
    17. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    18. Gasparatos, Alexandros & Doll, Christopher N.H. & Esteban, Miguel & Ahmed, Abubakari & Olang, Tabitha A., 2017. "Renewable energy and biodiversity: Implications for transitioning to a Green Economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 161-184.
    19. Timothy J. Bartik, 2006. "How Do the Effects of Local Growth on Employment Rates Vary With Initial Labor Market Conditions," Upjohn Working Papers 09-148, W.E. Upjohn Institute for Employment Research.
    20. repec:hal:pseose:hal-00812695 is not listed on IDEAS
    21. Mieczysław Adamowicz, 2022. "Green Deal, Green Growth and Green Economy as a Means of Support for Attaining the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-32, May.
    22. Minxin Zuo & Tao Wu, 2022. "Does Environmental Credit Rating Promote Green Innovation in Enterprises? Evidence from Heavy Polluting Listed Companies in China," IJERPH, MDPI, vol. 19(20), pages 1-15, October.
    23. Chintrakarn, Pandej, 2008. "Environmental regulation and U.S. states' technical inefficiency," Economics Letters, Elsevier, vol. 100(3), pages 363-365, September.
    24. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
    25. Celil Aydin & Ömer Esen, 2018. "Reducing CO2 emissions in the EU member states: Do environmental taxes work?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(13), pages 2396-2420, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guixiang Cao & Jinghuai She & Chengzi Cao & Qiuxiang Cao, 2024. "Environmental Protection Tax and Green Innovation: The Mediating Role of Digitalization and ESG," Sustainability, MDPI, vol. 16(2), pages 1-26, January.
    2. Shen Yang & Zhang Xiuwu, 2024. "Cleaner Production: Analysis of the Role and Path of Green Finance in Controlling Agricultural Nonpoint Source Pollution," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-13.
    3. Xin Zhang & Felix Nutakor & Michael Kaku Minlah & Jinke Li, 2023. "Can Digital Transformation Drive Green Transformation in Manufacturing Companies?—Based on Socio-Technical Systems Theory Perspective," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
    4. Jingjing Wang & Decai Tang & Li Shang & David D. Lansana, 2024. "Impact of air pollution perception on environmental governance satisfaction," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    5. Yi Yang & Tian Zheng & Jingjing Wu, 2024. "Green taxation, regional green development and innovation: Mechanisms of influence and policy optimization," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-21, December.
    6. Jingtai Wu & Xinyi Cai & Fei Zuo & Yue Dong, 2023. "Study on the Impact of Common Institutional Ownership on Corporate Green Transformation in the Context of “Dual Carbon”: Evidence from China," Sustainability, MDPI, vol. 15(15), pages 1-20, August.
    7. Minye Rao & László Vasa & Yudan Xu & Pinghua Chen, 2023. "Spatial and Heterogeneity Analysis of Environmental Taxes’ Impact on China’s Green Economy Development: A Sustainable Development Perspective," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    8. Jules-Eric Tchapchet-Tchouto & Joseph Pasky Ngameni, 2024. "Better Environmental Tax Regulations, better Structural Change and Innovation: Evidence from CFA Franc countries along Africa’s green industrialization outlook," SN Business & Economics, Springer, vol. 4(11), pages 1-23, November.
    9. Yi Gao & Yinkai Tang, 2023. "A Study on the Mechanism of Digital Technology’s Impact on the Green Transformation of Enterprises: Based on the Theory of Planned Behavior Approach," Sustainability, MDPI, vol. 15(15), pages 1-22, August.
    10. Li Yao & Minyan Jin, 2024. "RETRACTED ARTICLE: Impacts of green taxation on the green transformation of manufacturing industry: an empirical analysis based on Chinese provincial panel data," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-27, February.

    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. Yemane Wolde-Rufael & Eyob Mulat-weldemeskel, 2023. "Effectiveness of environmental taxes and environmental stringent policies on CO2 emissions: the European experience," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5211-5239, June.
    2. Josef Gotvald, 2024. "The role of environmental taxes and other political instruments on the road to climate neutrality [Role environmentálních daní a dalších politických nástrojů na cestě za klimatickou neutralitou]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2024(1), pages 47-76.
    3. Long Chen & Nan Wang & Qiyun Li & Wenjun Zhou, 2023. "Environmental regulation, foreign direct investment and China’s economic development under the new normal: restrain or promote?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4195-4216, May.
    4. Xingshuai Wang & Ehsan Elahi & Zainab Khalid & Mohammad Ilyas Abro, 2023. "Environmental Governance Goals of Local Governments and Technological Innovation of Enterprises under Green Performance Assessment," IJERPH, MDPI, vol. 20(3), pages 1-19, January.
    5. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    6. Chang, Juin-Jen & Huang, Chien-Yu & Wong, Chun Yee & Yang, Yibai, 2023. "Environmental regulation stringency and allocation between R&D and physical capital: A two-engine growth model," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 733-753.
    7. Xiaoxiao Zhou & Ming Xia & Teng Zhang & Juntao Du, 2020. "Energy- and Environment-Biased Technological Progress Induced by Different Types of Environmental Regulations in China," Sustainability, MDPI, vol. 12(18), pages 1-26, September.
    8. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
    9. Zhibo Zhou & Weiguo Zhang & Xinxin Pan & Jiangfeng Hu & Ganlin Pu, 2019. "Environmental Tax Reform and the “Double Dividend” Hypothesis in a Small Open Economy," IJERPH, MDPI, vol. 17(1), pages 1-21, December.
    10. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    11. Wang, Chao & Zhang, Yue-Jun, 2022. "The effect of environmental regulation and skill premium on the inflow of FDI:Evidence from Chinese industrial sectors," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 227-242.
    12. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    13. Jordy Meekes & Wolter H. J. Hassink, 2023. "Endogenous local labour markets, regional aggregation and agglomeration economies," Regional Studies, Taylor & Francis Journals, vol. 57(1), pages 13-25, January.
    14. Xiwei Zhu & Ye Liu & Ming He & Deming Luo & Yiyun Wu, 2019. "Entrepreneurship and industrial clusters: evidence from China industrial census," Small Business Economics, Springer, vol. 52(3), pages 595-616, March.
    15. Stefan Ambec & Paul Lanoie, 2007. "When and Why Does It Pay To Be Green?," CIRANO Working Papers 2007s-20, CIRANO.
    16. Johan Brolund & Robert Lundmark, 2017. "Effect of Environmental Regulation Stringency on the Pulp and Paper Industry," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    17. Shahrouz Abolhosseini & Almas Heshmati & Jorn Altmann, 2014. "The Effect of Renewable Energy Development on Carbon Emission Reduction: An Empirical Analysis for the EU-15 Countries," TEMEP Discussion Papers 2014109, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Mar 2014.
    18. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    19. Wenwen Zhang & Shichun Xu & Zhengxia He & Basil Sharp & Bin Zhao & Shuxiao Wang, 2019. "Impacts of U.S. Carbon Tariffs on China’s Foreign Trade and Social Welfare," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    20. Ito, Banri & Xu, Zhaoyuan & Yashiro, Naomitsu, 2015. "Does agglomeration promote internationalization of Chinese firms?," China Economic Review, Elsevier, vol. 34(C), pages 109-121.
    21. Peng Qi & Yu Shang & Fang Han, 2022. "The Effects of Environmental Regulation on Investment Efficiency—An Empirical Analysis of Manufacturing Firms in the Beijing–Tianjin–Hebei Region, China," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    22. Christopher Knittel & Shulamit Kahn, 2002. "The Impact of the Clean Air Act Amendments of 1990 on Electric Utilitiesand Coal Mines: Evidence from the Stock Market," Working Papers 528, University of California, Davis, Department of Economics.

    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:gam:jijerp:v:19:y:2022:i:24:p:16749-:d:1002457. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.