New Environmental Protection Taxes in China from the Perspective of Environmental Economics
In recent decades, most countries have implemented environmental protection by formulating relevant environmental regulations to reduce environmental pollution and improve environmental quality. China enacted new Environmental Protection Tax Law in 2018 and abolished the old system of pollution disc...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/8622081 |
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| _version_ | 1832561365361885184 |
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| author | Qianyang Tu Ying Wang |
| author_facet | Qianyang Tu Ying Wang |
| author_sort | Qianyang Tu |
| collection | DOAJ |
| description | In recent decades, most countries have implemented environmental protection by formulating relevant environmental regulations to reduce environmental pollution and improve environmental quality. China enacted new Environmental Protection Tax Law in 2018 and abolished the old system of pollution discharge fees. This paper analyzes and predicts the effectiveness of these new environmental tax policies within the framework of a macroeconometric dynamic stochastic general equilibrium (DSGE) model. Bayesian estimation is applied to estimate dynamic parameters based on China’s macroeconomic data from 1978 to 2018. We find that the implementation of China’s new environmental tax will lead to a significant increase in environmental quality through a reduction in the amount of pollution. However, the study reveals that new environmental taxes may have certain negative influences on economic growth. Consumption, output, wages, and capital could fall by 1.26%, 0.34%, 1.16%, and 1.12%, respectively, which may slow the pace of China’s development. |
| format | Article |
| id | doaj-art-74a326eff3aa41c9be219513209e7eae |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-74a326eff3aa41c9be219513209e7eae2025-02-03T01:25:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/86220818622081New Environmental Protection Taxes in China from the Perspective of Environmental EconomicsQianyang Tu0Ying Wang1College of Finance and Statistics, Hunan University, Changsha 410079, ChinaCollege of Finance and Statistics, Hunan University, Changsha 410079, ChinaIn recent decades, most countries have implemented environmental protection by formulating relevant environmental regulations to reduce environmental pollution and improve environmental quality. China enacted new Environmental Protection Tax Law in 2018 and abolished the old system of pollution discharge fees. This paper analyzes and predicts the effectiveness of these new environmental tax policies within the framework of a macroeconometric dynamic stochastic general equilibrium (DSGE) model. Bayesian estimation is applied to estimate dynamic parameters based on China’s macroeconomic data from 1978 to 2018. We find that the implementation of China’s new environmental tax will lead to a significant increase in environmental quality through a reduction in the amount of pollution. However, the study reveals that new environmental taxes may have certain negative influences on economic growth. Consumption, output, wages, and capital could fall by 1.26%, 0.34%, 1.16%, and 1.12%, respectively, which may slow the pace of China’s development.http://dx.doi.org/10.1155/2021/8622081 |
| spellingShingle | Qianyang Tu Ying Wang New Environmental Protection Taxes in China from the Perspective of Environmental Economics Discrete Dynamics in Nature and Society |
| title | New Environmental Protection Taxes in China from the Perspective of Environmental Economics |
| title_full | New Environmental Protection Taxes in China from the Perspective of Environmental Economics |
| title_fullStr | New Environmental Protection Taxes in China from the Perspective of Environmental Economics |
| title_full_unstemmed | New Environmental Protection Taxes in China from the Perspective of Environmental Economics |
| title_short | New Environmental Protection Taxes in China from the Perspective of Environmental Economics |
| title_sort | new environmental protection taxes in china from the perspective of environmental economics |
| url | http://dx.doi.org/10.1155/2021/8622081 |
| work_keys_str_mv | AT qianyangtu newenvironmentalprotectiontaxesinchinafromtheperspectiveofenvironmentaleconomics AT yingwang newenvironmentalprotectiontaxesinchinafromtheperspectiveofenvironmentaleconomics |