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An Empirical Study on the Impact of Environmental Tax and Government Innovation Subsidy on Enterprise Green Process Innovation

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Submitted:

16 November 2020

Posted:

17 November 2020

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Abstract
China is in the climbing phase of the "Inverted U" environmental Kuznets curve, from excessive environmental consumption to the development stage of governance and protection, and green innovation. It is the most complex period of environmental quality. Environmental and policy regulation are very important. Select panel data of 29 provinces of China (excluding Hong Kong, Macau, Taiwan, Hainan and Tibet) from 2008 to 2017, construct a nonlinear two-threshold regression model, empirically analyse the impact of environmental tax and government innovation subsidies to green processes innovation, and attempt to explore whether the implementation of these two policies at the same time can make enterprises more inclined to green process innovation and whether there is an optimal space for policy implementation. It is proposed that the synergy effect of environmental tax and government innovation subsidy policies on enterprise green process innovation should be fully utilized, and the enterprise green process innovation environment and incentive mechanism should be improved to promote the green transformation and sustainable development of enterprises.
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Subject: Business, Economics and Management  -   Accounting and Taxation
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
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