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The Influence of the Policy of Replacing Environmental Protection Fees with Taxes on Enterprise Green Innovation—Evidence from China’s Heavily Polluting Industries

Author

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  • Suyu Huang

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Hanlian Lin

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Yongjunbei Zhou

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Haonan Ji

    (Arts and Sciences College, Syracuse University, Syracuse, NY 13244, USA)

  • Naiping Zhu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

This paper analyzes the impact of the policy of replacing environmental protection “fees” with “taxes” on enterprise green innovation based on the Chinese A-share listed companies sample from 2015 to 2019. This paper tries to analyze the factors that may affect the level of green innovation of enterprises and the ability of enterprise green innovation (GI) under the background of the implementation of this policy. This paper adopts the difference-in-differences method (DID), takes 1 January 2018 as the time variable demarcation boundary and uses the heavily polluting industry as the dummy variable boundary, conducts group research on the experimental variables, and observes and analyzes the impact of heavily polluting industries and non-heavy pollution before and after the implementation of the policy. It is found that the policy significantly improves green innovation and the R&D efficiency of green innovation of enterprises in heavy pollution industries. Further research reveals that after the implementation of the policy, large enterprises and private enterprises, compared with SMEs and state-owned enterprises, lay more stress on improving green innovation technology. In the end, it examines the relationship between senior executives’ academic research experience and enterprises’ green innovation and finds that senior executives’ academic research experience can not only promote green innovation, but also improve the R&D efficiency of green innovation. The research results of this paper provide a theoretical basis for decision makers and enterprise management in formulating rules and managing enterprises.

Suggested Citation

  • Suyu Huang & Hanlian Lin & Yongjunbei Zhou & Haonan Ji & Naiping Zhu, 2022. "The Influence of the Policy of Replacing Environmental Protection Fees with Taxes on Enterprise Green Innovation—Evidence from China’s Heavily Polluting Industries," Sustainability, MDPI, vol. 14(11), pages 1-23, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6850-:d:831231
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    2. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    3. Hong Chen & Haowen Zhu & Tianchen Sun & Xiangyu Chen & Tao Wang & Wenhong Li, 2023. "Does Environmental Regulation Promote Corporate Green Innovation? Empirical Evidence from Chinese Carbon Capture Companies," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    4. Lingxiao Zhao & Yunpeng Tang & Yan Liu, 2023. "How Does Environmental Tax Influence the Scale and Efficiency of Green Investment among China’s Heavily Polluting Enterprises?," Sustainability, MDPI, vol. 15(20), pages 1-26, October.
    5. Hui Li & Dongsheng Yu & Zhixuan Ke, 2023. "Commercial System Reform, Enterprise Green Innovation and Enterprise ESG Performance," Sustainability, MDPI, vol. 15(19), pages 1-19, October.
    6. Wang, Hong & Hu, Xuechen & Li, Hailing, 2023. "Regional production restriction policy and firms’ green transition: Evidence from Beijing-Tianjin-Hebei region," Energy, Elsevier, vol. 282(C).
    7. Tu, Yu-Te, 2024. "Drivers of Environmental Performance in Asian economies: Do natural resources, green innovation and Fintech really matter?," Resources Policy, Elsevier, vol. 90(C).
    8. Marcos Carchano & Jean-Marie Cardebat & Angela Gonzalez & Inmaculada Carrasco, 2024. "Moving toward environmental sustainability through green entrepreneurship: assessing the moderating role of managerial environmental commitment," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 2209-2240, September.
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    10. Cheng Peng & Lu Zhao & Liwen Liu & Jia Chen, 2023. "The Influence of Environmental Protection Tax Law on Urban Land Green Use Efficiency in China: The Nonlinear Moderating Effect of Tax Rate Increase," Sustainability, MDPI, vol. 15(16), pages 1-18, August.
    11. Xiaosan Zhang & Xiaojie Hu & Fang Wu, 2022. "Fiscal Decentralization, Taxation Efforts and Corporate Green Technology Innovation in China Based on Moderating and Heterogeneity Effects," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    12. 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.
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