IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i11p1449-1452.html
   My bibliography  Save this article

Can environmental tax curb air pollution: evidence from China

Author

Listed:
  • Zheng Li

Abstract

Using the environmental tax reform implemented in 2018 in China as a quasi-experiment, this paper employs PSM, DID, and DDD methods to investigate the causal impact of environmental tax on air pollution. Viewing those provinces that choose to set a higher tax rate than the original pollution fee rate as the treatment group and provinces that do not increase the tax rate as the control group, this paper provides robust evidence that the environmental tax reform is effective in reducing PM2.5 and SO2 concentration level, while the effect is smaller and inconsistent for NO2. A back-of-the-envelope welfare analysis suggests that a 1-unit increase in the environmental tax rate is associated with a reduction of 5,616 in total deaths and a welfare gain of $28.256 billion in 2005 USD for all Chinese households.

Suggested Citation

  • Zheng Li, 2023. "Can environmental tax curb air pollution: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(11), pages 1449-1452, June.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:11:p:1449-1452
    DOI: 10.1080/13504851.2022.2061703
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2022.2061703
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2022.2061703?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Ni Wayan Widhiasthini & Ni Kadek Winda Yanti & Nyoman Sri Subawa & Nyoman Sridiva Dian Prabarini, 2024. "Tax Administration Based on Good Governance in Bangli Regency," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 488-497, August.

    More about this item

    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:taf:apeclt:v:30:y:2023:i:11:p:1449-1452. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.