Does the environmental protection tax reduce environmental pollution? Evidence from a quasi-natural experiment in China

A study of the impact of the environmental protection tax on corporate employment: Evidence based on listed companies in polluting industries

The implementation of the environmental protection tax (EPT) is a crucial step in the tasks of achieving the "double-carbon" objective and fostering comprehensive green economic and social growth. The literature on the effect of EPT policies has focused mainly on environmental effects and economic effects and has rarely paid attention to social effects, such as the impact of such policies on employment. By reference to data regarding pollution-intensive listed companies in China from 2014 to 2022, this article uses the 2018 EPT reform as a quasi-natural experiment to explore the effects of EPT on employment within these industries. The EPT reform is shown to have a significant dampening effect on corporate employment in the pollution industry, a conclusion that continues to hold after a number of robustness tests, including the differences-in-differences-in-differences (DDD) tests, the parallel trend test, the placebo test, and the PSM-DID test. Further analysis shows that the EPT reform suppressed employment in polluting industries mainly through two pathways: the output effect and the factor substitution effect. Moreover, the EPT reform generated more significant disincentives to employment in non-state-owned enterprises, large-scale enterprises, and mining industries. This study's findings can serve as a crucial reference for policies in China that aim to promote high-quality full employment in the context of environmental governance. The results of this research can also serve as a reference for a cost‒benefit analysis of environmental policies in China in terms of employment and provide a theoretical basis for and practical experience regarding the task of coordinating the relationship between environmental governance and employment regulation in China.

Can environmental protection tax force enterprises to improve green technology innovation?

The introduction of an environmental protection tax enables a smooth shift from the sewerage charge system to the environmental protection tax scheme. This, in turn, promotes a more sustainable development of enterprise growth, emphasizing eco-friendliness. This is of immense importance in advancing environmentally aware practices and sustainability. Based on data collected from A-share listed companies in Shanghai and Shenzhen from 2014 to 2021, this paper investigates the influence of environmental protection taxes on the advancement of green technology and the underlying mechanisms. Taking the execution of the Environmental Protection Tax Law in 2018 as a quasi-natural experiment, a double-difference model is employed to examine the causal relationship between environmental protection taxes and the adoption of green technology by companies. The findings indicate that the introduction of an environmental tax could markedly enhance the extent of green technological innovation within corporations. The evidence arising from the testing mechanism implies that such a tax can encourage firms to boost their investments in research and development, upgrade their innovative human capital, and mitigate financing limitations. The study found that there is heterogeneity in the promotion effect of the environmental protection tax on the green technological innovation of businesses in different regions and provinces with varying tax burdens and types of equity capital. Further research shows that the environmental protection tax has a greater impact on the promotion of utility model patent applications for green technology innovation. This paper presents empirical evidence to support further enhancement of the environmental protection tax system. It recommends designing the environmental protection tax policy with consideration for enterprises and local conditions and bolstering the system's capacity for guiding and stimulating enterprises' green development.

Corporate social responsibility-an antidote for sustainable business performance: interconnecting role of digital technologies, employee eco-behavior, and tax avoidance

Small- and medium-sized enterprises (SMEs) have consistently contributed significantly to the economy's gross domestic product (GDP). Organizations are motivated to achieve sustainable performance by mitigating the adverse impacts of company operations by improving productivity and optimizing resource utilization. In order to achieve this objective, the businesses are making all their efforts and developing the systems to ensure sustainable performance. Based on the prevailing research gaps, the current study examines the role of a portfolio of responsible digital technologies (DT), which provides a competitive advantage and helps achieve sustainable firm performance (SFP). Using a simple random sampling technique, data from 294 textile manufacturing SMEs is collected and analyzed using the structural equation model (SEM) in AMOS v.24. The results indicated that digital technologies, tax avoidance, green employee behavior, and corporate social responsibility facilitated improving the SFP of SMEs. Furthermore, it is worth noting that the link connecting TA and SFP is unaffected by CSR activities aimed at the environment. This finding, however, should not lessen the importance of TA, which deserves significant attention and thought from management.