Research on the Impact of Environmental Protection Tax Incentives on Enterprises' Green and Low-Carbon Transformation
DOI:
https://doi.org/10.62051/2bn0rf55Keywords:
Environmental tax incentives; The transition to a green and low-carbon economy; Local government debt.Abstract
As a major tax-collecting nation and one of the key contributors to global environmental governance, China's tax policies have attracted worldwide attention, whilst its environmental governance efforts have also come under scrutiny. To date, in the process of promoting sustainable and green development, China has introduced a range of tax measures, including the replacement of pollution discharge fees with an environmental protection tax, the establishment of a systematic framework comprising 56 green tax incentives to support green development, and the passage of the 'Ecological and Environmental Code of the People's Republic of China' in 2026. The introduction of environmental tax incentive policies is intended to facilitate a comprehensive green and low-carbon transition in economic and social development and to implement a sustainable development strategy. This paper delves further into the relationship between these two aspects and examines the mechanisms through which environmental tax incentives directly or indirectly influence enterprises' green and low-carbon transition. The study employs empirical analysis using listed data on environmental tax incentives for companies from 2008 to 2024, alongside data on green patents applied for by these companies. The study found that environmental tax incentives significantly promote enterprises' green and low-carbon transition, while internal factors—including cash levels and operating costs—as well as macro-level external environmental factors such as local public debt levels, exert negative moderating effects.
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