Assessing the Impact of Environmental Protection Tax Law on the Market Valuation of High-Pollution Companies: A Quasi-Natural Experiment Approach in China
Journal Title: Journal of Green Economy and Low-Carbon Development - Year 2023, Vol 2, Issue 4
Abstract
Based on the financial panel data of Chinese A-share listed companies from 2015 to 2022, this paper takes the “Fee-to-Tax” reform in environmental protection in 2018 as a quasi-natural experiment and employs the Propensity Score Matching-Difference-in-Differences (PSM-DID) model to explore the impact of the environmental protection tax on the valuation of heavily polluting enterprises. The research results show that the environmental protection tax can significantly promote the valuation increase of heavily polluting enterprises and has passed a series of robustness tests. In addition, the analysis of regional heterogeneity and enterprise ownership heterogeneity further reveals the differences between regions and enterprise ownership. The environmental protection tax has a significant positive impact on the valuation of heavily polluting enterprises in Eastern China and non-state-owned heavily polluting enterprises. It is also further found that the environmental protection tax policy improves the valuation of heavily polluting enterprises through the paths of environmental information disclosure, green technology innovation, and intelligent transformation. In light of these findings, this paper proposes relevant policy recommendations to provide reference for accelerating enterprise transformation and upgrading and promoting steady economic growth.
Authors and Affiliations
Lelai Shi, Hong Lin, Živko Erceg, Yujie Yan
Keywords
Related Articles
- EP ID EP731984
- DOI https://doi.org/10.56578/jgelcd020401
- Views 55
- Downloads 0
Assessing the Impact of Geopolitical Risk on Environmental Degradation in G7 Countries: A Quantile-on-Quantile Regression Approach
Considering the recent adverse developments, studies have focused on the environmental degradation of countries. In this context, various indicators for the environment as well as explanatory variables have been used. In...
Operation Strategies of Green Supply Chain Members with Short-Sighted and Far-Sighted Behavior: A Differential Game Theory Approach
The concept of “green supply chain” has gained increasing attention in the pursuit of sustainable development by enterprises globally, leading to the optimization of supply chain management. However, the behavior pattern...
Selecting Optimal Alternatives for Sustainable Intralogistics in Automotive Industry Warehouse Supply Chains
Intralogistics activities within automotive industry warehouses play a critical role in the efficient management of materials, components, and finished goods throughout production and distribution processes. These activi...
Modeling Consumer Decisions for Purchasing Green Products: Insights into Environmentally Conscious Companies
Environmental challenges are increasingly addressed through movements that promote environmental care and awareness. Consumers with a high degree of environmental consciousness are more inclined to purchase environmental...
Harnessing REDD+ for Community Involvement and Equitable Benefit Distribution: Insights from Dhankuta District, Nepal
The complex interplay between fuelwood consumption, deforestation, and land-use transformation in the Dhankuta district of Nepal is scrutinized in this investigation, concurrently shedding light on the feasibility of sec...