Environmental protection tax and green innovation of heavily polluting enterprises: A quasi-natural experiment based on the implementation of China’s environmental protection tax law

• DOI: 10.1371/journal.pone.0286253
• Publication Date: 2023-06-15T18:07:41Z
• Authors: Juqiu Deng; Jiayu Yang; Zhenyu Liu; Qingyang Tan
• Keywords: Marketization; Promotion (chess); Investment; Green innovation; Environmental tax

Environmental protection tax is an important tool for directing environmentally friendly growth in heavily polluting enterprises, but existing research has yet to provide consistent conclusions on whether and how environmental can promote green innovation industries. The paper uses a double difference model based data from Chinese listed companies industries 2012 2021 empirically investigate drives behavior of enterprises. findings show that the increases degree primarily through anti-driving effect, which increase management expenses forces firms their R&D investment, improves technical innovation. Furthermore, strong promotion effect heavy polluters' state-owned enterprises those growing period or located high marketization regions. However, this insignificant non-state-owned recession period, hinders mature low Accordingly, it suggested improve preferential policies, investment corporate strengthen supervision tax.