Environmental tax reform roles and strategies of local governments

A quasi-natural experiment from China

Bibliographic Data

ID6454895
AuthorsTianyang Chu (corresponding author)
Year2025
Volume9
Pages100453-100453
Publication date2025-01-15
Open AccessYes
TypeARTICLE
VenueSustainable Futures (JOURNAL)
Journal identifiersISSN: 2666-1888
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.sftr.2025.100453
OpenAlexW4406412049
LanguageEN
Citations received1
References cited39

Whether environmental tax reform can drive green economic transformation is closely related to local government behavior. This study examines the impact of environmental tax reform on local governments using panel data for 247 Chinese prefecture-level cities from 2011 to 2021 and the difference-in-differences method. It finds that environmental tax reform leads local governments to increase environmental supervision and fiscal technology expenditure. A mechanism analysis shows that environmental tax reform increases local governments’ motivation to promote green innovation through target adjustments and public environmental demands. Heterogeneity analyses indicate that environmental tax reform has a stronger effect on increasing environmental supervision and fiscal technology expenditure in high-growth- and high-environmental-pressure cities, and northern cities. Expansion analyses show that although environmental tax reform inhibits overall market segmentation, it is more significant in southern cities and insignificant in northern cities. Finally, with active local government cooperation, environmental tax reform could reduce pollution emissions and promote green economic transformation

Business · China · Economic system · Economics · Environmental tax · Geography · Natural (archaeology · Natural experiment · Natural resource economics · Political science · Public economics · Tax reform · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Medicine

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Open DOIOpen Access