From liability to opportunity
How environmental protection taxes can propel water pollution mitigation in heavy polluting enterprises
Bibliographic Data
| ID | 21600543 |
|---|---|
| Authors | Lan Mu (0000-0003-0199-9509, Shaanxi Normal University, corresponding author), Qiongyao Wang (0000-0002-6760-4234, Shaanxi Normal University), Ying Li (0000-0003-0678-9535, Shaanxi Normal University), Haoying Liu (Shaanxi Normal University), Chuanzhen Zhang (0009-0005-7398-4447, Shaanxi Normal University) |
| Year | 2025 |
| Pages | 1-32 |
| Publication date | 2025-11-24 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Environmental Planning and Management (JOURNAL) |
| Journal identifiers | ISSN: 0964-0568 • E-ISSN: 1360-0559 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09640568.2025.2588380 |
| OpenAlex | W4416575489 |
| Language | EN |
| References cited | 87 |
This study examines how the Environmental Protection Tax (EPT) influences water pollution control among major polluting firms in China. Using a triple difference (DDD) approach on A-share firm data from 2009–2022, we find that the EPT significantly reduces firms’ pollutant discharges, with the strongest effect appearing in the second year after implementation. We develop an institutionally grounded framework that connects managerial responses and political incentives, revealing two main channels – improved corporate management and strengthened political promotion incentives. The effects are concentrated in non–state-owned, large, and competitive firms with lower ownership–control separation. This study contributes by developing a dual-mechanism framework that links political incentives and corporate governance, revealing how fiscal environmental instruments shape firm behavior and sustain policy effectiveness under state capitalism, thereby advancing environmental taxation research from efficiency evaluation to institutional mechanisms
Clean Water Act · Climate change mitigation · Liability · Pollution prevention · Water industry · Water pollution · Climate Change Policy and Economics · International Environmental Law and Policies · Regulation and Compliance Studies · Pollution
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| Citation velocity | historical |
|---|---|
| Highly cited | No |