The Impact of Water Resources Tax Policy on Water Saving Behavior
2. Theoretical Background
2.1. Mechanisms of the Impact of Water Resources Tax on People’s Lives
2.2. The Mechanism of the Impact of Water Resources Tax on Enterprise Production
2.3. Comprehensive Impact Mechanism of Water Resources Tax on Social Development
3. Material and Methods
- Hypothesis 1: On the production side, the market structure is assumed to be a perfectly competitive market in which manufacturers follow the principles of cost minimization and profit maximization when producing, and the production function has the characteristic of constant returns to scale.
- Hypothesis 2: On the consumption side, residents consume various goods according to the principle of utility maximization, and their utility is modeled using the constant relative risk aversion (CRRA) function.
- Hypothesis 3: Capital, labor, and water resources are freely mobilizable, while wages conform to the supply and demand theorem and are free to change instantaneously.
- Hypothesis 4: only the government department levies the water resources tax, and it is used only for water resources protection management and infrastructure construction expenditure.
- Introducing the water resources factor into the production function.
- Introduction of water resources tax into the production cost of enterprises.
3.4.4. Market Equilibrium
4.1. Parameter Estimation
4.1.1. Calibration of Structural Parameters
4.1.2. Dynamic Parameter Estimation
4.2. Calculation of Steady-State Values
4.3. Impulse Response Analysis of Water Resources Tax Shocks
4.3.1. Responses of Enterprises to Water Resources Tax Shocks
4.3.2. Resident Response to the Water Resources Tax Shock
4.3.3. Comprehensive Impact of Water Resources Tax on the Economy and Society
- The collection of a water resource tax can effectively achieve the water-saving goal, and help promote water-saving production in enterprises, change the industrial water consumption structure, and improve the utilization efficiency of water resources.
- The collection of the water resources tax is conducive to improving the water-saving consciousness of enterprises and residents, and the price mechanism adjustment helps encourage enterprises to change the water intake mode and optimize the production structure.
- The collection of the water resources tax effectively protects the water ecological environment and improves the recycling capacity of water resources and the water supply capacity in meeting water demand.
Data Availability Statement
Conflicts of Interest
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|Variable||First-Order Lag Coefficient||Standard Error of the Coefficient||t-Test||p v.||Regression Standard Deviation|
|Parameter||Representative Meaning||Calibration Value|
|Subjective discount factor||0.976|
|Reciprocal of the intertemporal elasticity of substitution of consumption||1|
|Inverted Frisch elasticity of labor supply||3|
|Capital depreciation rate||0.08|
|The elasticity of capital output||0.49|
|The elasticity of labor output||0.51|
|The loss rate of water resources||0.27|
|Persistent parameters of monetary policy shocks||0.56|
|Persistent parameters of water resources tax shocks||0.53|
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Wang, L.; Muniba; Lakner, Z.; Popp, J. The Impact of Water Resources Tax Policy on Water Saving Behavior. Water 2023, 15, 916. https://doi.org/10.3390/w15050916
Wang L, Muniba, Lakner Z, Popp J. The Impact of Water Resources Tax Policy on Water Saving Behavior. Water. 2023; 15(5):916. https://doi.org/10.3390/w15050916Chicago/Turabian Style
Wang, Lei, Muniba, Zoltán Lakner, and József Popp. 2023. "The Impact of Water Resources Tax Policy on Water Saving Behavior" Water 15, no. 5: 916. https://doi.org/10.3390/w15050916