Search Results (63)

Against the dual backdrop of the global green transition and China’s construction of a unified national market, the impact of environmental policies on the spatial allocation of capital has emerged as a core concern for academic researchers and policymakers alike. China’s implementation of the Environmental Protection Tax Law in 2018 completed the historic transition from the long-standing pollution discharge fee system to a formal environmental tax regime. While differentiated interprovincial tax rates under the new regime have the potential to reshape cross-regional capital flow patterns, existing literature lacks systematic micro-level empirical evidence regarding how environmental tax reform affects firms’ cross-regional investment and the underlying mechanisms driving such effects. This study constructs a sample of Chinese A-share-listed firms covering the period 2012 to 2024 and applies the difference-in-differences (DID) method to systematically examine the causal impact, transmission channels, and heterogeneous boundary conditions of environmental tax reform on firms’ cross-regional investment. The baseline estimation results confirm that environmental tax reform significantly stimulates cross-regional investment activities among firms located in provinces that raised environmental tax rates after the reform. This core conclusion remains robust across a series of validity checks, including parallel trend assumption tests, placebo tests, propensity score matching combined with difference-in-differences (PSM-DID) estimation, and the exclusion of confounding effects from contemporaneous policy interventions. Mechanism analysis identifies two core transmission channels through which the reform exerts its effects: rising pollution abatement costs and alleviation of corporate financing constraints. Further heterogeneity tests reveal that the promoting effect of the reform on cross-regional investment is more prominent for capital-intensive firms and firms located in regions with lower fiscal pressure and firms operating in regions with stricter environmental law enforcement. This study provides new micro-level empirical evidence supporting the applicability of both the pollution haven hypothesis and the Porter hypothesis in the Chinese institutional context and offers actionable policy insights for optimizing the design of the environmental tax system, guiding corporate green transformation, and facilitating coordinated regional development. Full article

In China, the environmental protection tax constrains and incentivizes firms to cut emissions and lift efficiency. To examine the effect and mechanism of environmental regulation as a driver of corporate green transformation, this study uses data on Chinese listed manufacturing firms from 2011 to 2022. It takes the 2018 environmental fee-to-tax reform as a quasi-natural experiment and employs a difference-in-differences model. The core DID coefficient is 0.0088 (p < 0.05). After the reform was implemented, manufacturers in higher-tax regions achieved better green transformation by increasing pollution costs, adjusting investment and improving executives’ green awareness. The policy effects were more pronounced for low-profit, non-state-owned, non-patent and labor-intensive firms in regions with higher tax burdens. Additionally, the policy effect exhibited a time lag. The incentive effect was stronger for heavily polluting enterprises, and the policy simultaneously boosted corporate economic performance. Accordingly, we propose broadening the taxable scope, tightening supervision, optimizing tax incentives and adopting targeted policies to support corporate green transformation. Full article

In the context of global climate change and industrial low-carbon transition, whether environmental taxes can simultaneously promote environmental and economic benefits by stimulating corporate green investment remains a central issue in academic research. Existing studies have reached mixed conclusions regarding the effects of environmental taxes, emphasizing either the “innovation compensation” effect or the “crowding-out” effect. However, this binary perspective overlooks the internal boundary conditions under which environmental taxes operate, particularly the roles of market competition and firm-level resource endowments. In particular, limited attention has been paid to how competitive market environments shape firms’ responses to environmental regulation. To address this gap, this study develops an integrated analytical framework that combines external market competition with internal firm endowments. Using China’s 2018 Environmental Protection Tax Law as a quasi-natural experiment and a panel dataset of Chinese listed firms from 2009 to 2024, this study employs a Difference-in-Differences (DID) approach to examine the impact of environmental taxation on corporate green investment. The results show that: (1) the environmental protection tax significantly promotes corporate green investment, with substantial heterogeneity across firm size, ownership structure, and regional institutional environments; (2) market competition serves as an important external moderating mechanism, as intensified competition strengthens firms’ incentives to pursue technological differentiation through green investment, thereby generating an “escape-competition effect”; and (3) from an internal perspective, the effectiveness of environmental taxation is also shaped by firm endowments. High investment activity provides the necessary resource buffer to support strategic pivots, whereas rapid revenue growth and high financial slack (excessive cash ratio) generate strategic inertia, thereby attenuating firms’ responsiveness to the tax shock. This study not only provides empirical evidence from China on the mechanisms through which environmental taxes influence corporate green transformation, but also offers important policy implications for improving environmental tax systems in other countries. Full article

Under China’s dual-carbon goals, Green Finance Policy (GFP) and the Environmental Protection Tax Policy (ETP) are key tools for firm-level green transformation, yet their joint micro-effects remain underexplored. Using Shanghai and Shenzhen A-share listed firms from 2011–2022, this study treats the overlapping rollout of the Green Finance Reform and Innovation Pilot Zones and the Environmental Protection Tax reform as a staggered quasi-natural experiment and applies a multi-period DID to identify their synergistic effect on Corporate Green Technology Innovation. Results show that each policy alone promotes green innovation and that their coordination further strengthens the effect. The synergy operates mainly by easing financing constraints and increasing R&D investment. The effect is stronger among firms with better resources, governance, and digitalization, and in regions with stronger institutional environments; it is also more evident in non-heavy-polluting and non-manufacturing sectors. While the policy mix raises both innovation quantity and quality, it does not significantly improve total factor productivity, indicating a “weak Porter effect.” These findings provide micro-level evidence on GFP–ETP synergy and inform the refinement of green finance, environmental tax design, and firm-level green transition policies. Full article

Sub-Saharan African health systems face critical funding challenges due to declining foreign aid, mounting debt and increasing disease burdens. Traditional financing mechanisms have proven inadequate, necessitating the exploration of innovative domestic revenue mobilization (DRM) strategies. This paper contributes to the health economics literature by examining the use of innovative tax models as DRM strategies for sustainable health financing in Sub-Saharan Africa, using the fiscal space for health framework. This narrative review synthesizes peer-reviewed articles, policy documents, and grey literature published between 2010 and 2025. The review identifies four promising innovative models: health taxes (tobacco, alcohol, sugar-sweetened beverages), environmental levies (pollution, carbon, plastic), digital taxation (digital services taxes, mobile money taxes, Value Added Tax (VAT) on digital services) and resource extraction taxes. The evidence demonstrates significant revenue generation potential while achieving public health and environmental co-benefits. However, critical implementation challenges persist: weak administrative capacity, poor governance quality, equity concerns and extensive informality and economic diversity. The paper recommends strengthening tax administration through digital infrastructure investment and capacity building, implementing progressive tax design with targeted exemptions, enhancing transparency and linking tax revenue to health service delivery, and tailoring reforms to country-specific contexts while learning from regional experience. Full article

This paper examines whether CEO green experience shapes firms’ responses to China’s environmental protection tax (EPT) under the 2018 “fee-to-tax” reform. Using a panel of Chinese A-share listed firms from 2013 to 2023, we construct a firm–year measure of the effective environmental payment burden by harmonizing pollution discharge fees (pre-2018) with EPT payments (post-2018) and scaling by operating revenue. This measure is intended to capture firm-level response patterns under the EPT regime, rather than represent firms’ underlying environmental outcomes directly. CEO green experience is measured through keyword-based text analysis and manual verification of publicly available CEO résumés and coded as an indicator variable. Employing a two-way fixed effects framework with firm and year fixed effects and firm-clustered standard errors, we find that firms led by green-experienced CEOs exhibit a significantly lower effective EPT burden. Mechanism tests suggest that environmental information disclosure—proxied by the issuance of a standalone environmental report—serves as an important channel in this relationship: green-experienced CEOs are more likely to promote environmental reporting, which is associated with a lower effective tax burden. A battery of robustness checks, including alternative measures of CEO green experience and restricting the sample to the post-2018 period, supports the stability of the main results. Heterogeneity analyses further suggest that the association is stronger among highly educated CEOs, large firms, and firms in heavily polluting industries. The findings highlight the role of executive characteristics and disclosure institutions in shaping firm-level responses to market-based environmental regulation. Full article

This study addresses the critical issue of Food Waste (FW) across the 27 European Union (EU) member states by investigating its correlation with key socio-economic and environmental factors. Utilizing panel data regression with a fixed-effects model, this research controls for inherent country-specific characteristics to isolate the influence of variables, such as GDP per capita, educational attainment, environmental taxes, and economic burden on FW levels. The analysis reveals that FW is shaped by a complex interplay of factors, where economic affluence (GDP per capita) and financial stress (housing cost overburden) both exhibit a positive and statistically significant relationship with increased FW. Conversely, higher educational attainment, particularly at the bachelor’s and master’s degree levels, is strongly associated with reduced FW, emphasizing education’s role in promoting sustainable behavior. Environmental policy variables, including environmental taxes and circular material use, are negatively correlated with waste, suggesting effective indirect reduction. Notably, government support for agriculture demonstrates a positive association with FW, potentially indicating incentives for overproduction. These findings highlight the multidimensional nature of FW in the EU, necessitating comprehensive policy responses that integrate educational initiatives, economic levers, and sustainability-oriented reforms to promote resource-efficient consumption across the continent. By clarifying these relationships, this study contributes to the literature by providing one of the few examples of cross-country, EU-wide panel analyses that jointly consider economic, educational, and policy dimensions of FW. The findings offer practical implications for policymakers, emphasizing that FW reduction requires integrated strategies: strengthening environmental taxation and circularity initiatives, aligning agricultural subsidies with sustainability goals, and expanding educational programs that cultivate food-responsible behavior. Together, these insights support the design of more targeted and evidence-based interventions to reduce FW and promote resource-efficient consumption across the EU. Full article

Implementing environmental protection taxes implies a shift in environmental policy from government enforcement to market incentives, fostering long-term sustainability. Based on institutional theory, this study explores the nonlinear impact of environmental taxes on corporate green innovation and its influencing mechanism, by considering the complex interaction between innovation offsets and environmental costs. Utilizing data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges during 2012 and 2023, the study reveals an inverse U-shaped relationship between environmental taxes and green innovation performance, within which corporate environmental responsibility functions as a mediator. Furthermore, the results also reveal that the relationship between environmental taxes and green innovation is positively moderated by the development level of regional green finance. In addition, the heterogeneity analyses show that the inverse U-shaped relationship is more pronounced among heavily polluting and large-scale firms, and firms in more marketized areas and areas with higher levels of intellectual property protection. The research enriches the literature on the dual-edged effects of environmental taxes anchored in green innovation and unpacks the internal mechanism of the effectiveness of environmental protection tax policy. It also provides practical implications for the design of tiered taxes and green finance policies aimed at achieving sustainable development. Full article

Water supply systems (WSS) face various threats such as climate change, declining freshwater availability, and over-extraction of groundwater. To improve the resilience and sustainability of WSS, both technological innovation and effective institutional and economic mechanisms are required. This study evaluates China’s recent water resource fee-to-tax reform as a quasi-natural experiment. It analyzes panel data from 222 prefecture-level cities between 2012 and 2023 and applies a multi-period difference-in-differences model to assess the impact of this reform on water use structure and efficiency. The two main research goals are to examine whether the reform has enhanced the structural resilience of WSS in terms of the shift from groundwater dependence to surface water, and whether it has improved water use efficiency to ensure sustainable water use. Our results show that the reform significantly reduced reliance on groundwater and increased the proportion of surface water use, thereby enhancing the structural resilience of urban water supply systems. Further analyses confirm that these effects are most pronounced in eastern and central regions, where water stress is higher. On the other hand, while the reform improved water use patterns, its positive impact on water use efficiency remains limited due to the current tax design. Overall, our research results demonstrate how fiscal instruments can be leveraged to improve sustainability of WSS. They provide policy insights for strengthening resilience of WSS against resource scarcity and environmental risks. Full article

China’s dual carbon goals necessitate green transformation across industries, with STAR Market enterprises serving as crucial drivers of technological innovation. Existing studies predominantly focus on traditional sectors, overlooking dynamic policy interactions and structural heterogeneity in these technology-intensive firms. This study examines how coordinated environmental tax reforms, green finance initiatives, and equity network synergies collectively shape enterprise green transition, using multi-period difference-in-differences and triple-difference models across 2019 Q3–2023 Q4. By integrating financial records, patent filings, and carbon emission data from 487 STAR Market firms, the analysis identifies environmental cost pressures as the dominant policy driver, complemented by delayed financing incentives and accelerated resource integration through corporate networks. Regional institutional environments further modulate these effects, with areas implementing stricter tax reforms exhibiting stronger outcomes. The findings advocate for adaptive policy designs that align fiscal instruments with regional innovation capacities, optimize financial tools for technology commercialization cycles, and leverage inter-firm networks to amplify sustainability efforts. These insights contribute to refining China’s climate governance framework for emerging technology sectors. Full article

Our goal was to identify and understand perspectives of different stakeholders in the field of climate policy and test a process of co-creative policy development to support the implementation of climate protection measures. As the severity of climate change grows globally, perceptions of climate science and climate-based policy have become increasingly polarized. The one-solution consensus or compromise that has encapsulated environmental policymaking has proven insufficient or unable to address accurately or efficiently the climate issue. Because climate change is often described as a wicked problem (multiple causes, widespread impacts, uncertain outcomes, and an array of potential solutions), a clumsy solution that incorporates ideas and actions representative of varied and divergent worldviews is best suited to address it. This study used the Theory of Plural Rationality, which uses a two-dimensional spectrum to identify four interdependent worldviews as well as a fifth autonomous perspective to define the differing perspectives in the field of climate policy in Austria. Stakeholder inputs regarding general worldviews, climate change, and climate policy were evaluated to identify agreeable actions representative of the multiple perspectives. Thus, we developed and tested a co-creative process for developing clumsy solutions. This study concludes that while an ideological consensus is unlikely, agreement is more likely to occur on the practical level of concrete actions (albeit perhaps for different reasons). Findings suggested that creating an ecological tax reform was an acceptable policy action to diverse stakeholders. Furthermore, the study illuminated that the government is perceived to have the most potential influence on climate protection policy and acts as a key “broker”, or linkage, between other approaches that are perceived to be more actualized but less impactful. Full article

Environmental protection tax (EPT), as a major tool to improve air quality and reduce carbon emissions, is of great significance for promoting urban low-carbon transformation. In this context, this paper has compiled a dataset from 282 Chinese cities during 2006–2022 and empirically identify the implication of EPT for carbon emissions at the city level by using the intensity difference-in-differences (I-DID) model. The result discloses that EPT greatly lowers carbon emissions by an average of 10.9% compared to non-pilot cities. Even after conducting some robustness checks, the result remains unchanged. Mechanism testing reveals that EPT curbs carbon emissions through enhancing energy utilization efficiency, fostering green technological advancements, and modernizing urban industries. Meanwhile, we show that EPT exerts a more substantial effect on carbon emissions in innovative cities, central and western cities, non-industrial-based cities, and non-resource-dependent cities. More importantly, EPT greatly promotes imitation and learning in neighboring regions, forming a radiation impact upon carbon reduction in surrounding areas. Hence, these results offer an important decision-making guide for optimizing the EPT system, strengthening the coordinated governance of carbon emission across regions, and ultimately promoting urban low-carbon development. Full article

Manufacturing enterprises, as significant contributors to high carbon emissions, play a crucial role in effectively reducing carbon emission intensity, which is essential for China to successfully achieve its “dual carbon” goals. This study examines the period from 2010 to 2022, focusing on manufacturing enterprises listed on the Shanghai and Shenzhen A-shares to investigate the effects of green financial reform on carbon and pollutant emissions. Our findings reveal that the results from the parallel trend test and the regression analysis of the Difference-in-Differences (DID) model indicate that the implementation of green financial reform has a negative impact on the carbon and pollutant emissions of manufacturing enterprises, which is supported by a series of robustness tests. Heterogeneity analysis shows that the emission reduction effect of green financial reform on pollutants is significant only in manufacturing enterprises with low industry competitiveness, while the inhibitory effect on carbon emissions is significant only in those with high industry competitiveness. Furthermore, the emission reduction effects are significant in highly polluting industries, non-state-owned enterprises, and small-scale firms. Green technological innovation and financing constraints serve as the channels connecting green financial reform with emission reduction and carbon mitigation. The tax burden negatively moderates this process, while environmental, social, and governance (ESG) performance positively moderates it. Full article

Environmental sustainability constitutes a strategic priority for Germany, with the circular economy serving a crucial function in its realization. Circular practices foster sustainable development by decreasing reliance on finite resources, minimizing waste, and reducing greenhouse gas (GHG) emissions. The circular economy provides ecological advantages and strengthens economic resilience through the promotion of innovation, enhancement of supply chain efficiency, and creation of green jobs. Complementary measures, including the preservation of natural capital, the enactment of structural economic reforms, and the implementation of environmental taxes, enhance sustainability objectives. Ecosystem conservation enhances carbon absorption, structural changes facilitate low-emission industries, and environmental taxes incorporate environmental costs. In contrast, industrial activity continues to be a significant contributor to GHG emissions, necessitating policy examination. This study analyzes the relationships between the circular economy, natural capital, structural change, environmental taxation, and industrial activities on GHG emissions in Germany from the first quarter of 2010 to the fourth quarter of 2022. The study employs wavelet coherence analysis (WCA), fully modified ordinary least squares (FMOLS), and dynamic ordinary least squares (DOLS), demonstrating that circular economy practices, natural capital, structural changes, and environmental taxes significantly reduce GHG emissions. Conversely, industrial activities continually elevate GHG emissions in Germany. Moreover, WCA further reveals the time–frequency dynamics and co-movement patterns between key variables and GHG emissions, enabling the detection of both short-term and long-term dependencies. The results indicate that enhancing environmental sustainability in Germany could be effectively achieved by mandating the integration of recycled materials within key industrial sectors to improve environmental sustainability, which would help lower resource extraction and related GHG emissions. Full article

South Africa remains one of Africa’s highest greenhouse gas emitters due to its reliance on coal and a carbon-intensive economy. This study employs an Autoregressive Distributed Lag (ARDL) model to examine the impact of environmental taxes, coal consumption, and low-carbon transition strategies on GHG emissions. Results show that coal use significantly drives long-term emissions, while the positive correlation between environmental tax revenue and emissions suggests inefficiencies in fiscal-environmental alignment. The significant error correction term indicates gradual movement toward equilibrium despite short-term disruptions. The findings underscore the need for an integrated climate strategy that includes regulatory reform, investment in renewables, and the redesign of green fiscal tools. Inclusive governance—engaging state, private, academic, and civil sectors—is vital for a just and effective energy transition. Full article