Impact of green fiscal policy on sustainable development performance of Chinese enterprises

• DOI: 10.52152/3726
• Publication Date: 2024-12-20T07:56:29Z
• Authors: Ziqiu Gao

Since China's reform and opening up, the Chinese economy has made significant achievements in society. However, along with this growth, it is also accompanied by the adverse natural environment and the increasing scarcity of land resources and energy. It is precisely these traditional ways of economic and social growth in China, namely the extensive social management model, that have a significant impact on the sustainable development of China's economy and society. Against the historical background of actively promoting scientific development theory and promoting the transformation of the economy and society towards high-quality development in China, the public welfare characteristics of the environment have posed challenges to local government departments in adapting to and dealing with this phenomenon. The phenomenon of resource depletion and environmental pollution often accompanies production behavior and has the characteristic of cross-regional flow. Therefore, addressing these problems requires adopting methods with regional specificity and coordination. In this context, fiscal policy has been introduced into the field of environmental governance and economic regulation, resulting in the "green finance" policy. China's green fiscal policy has undergone long-term development and reform, and has initially established a relatively complete system and regulatory mechanism. Against the backdrop of increasing environmental awareness, China has gradually established a financial incentive policy system guided by environmental protection. The implementation of green fiscal policies in China has achieved significant results and has had a positive and direct impact on sustainable development performance. This article first explains the definition of green fiscal policy, and then delves into its impact on the economy, including its mechanism of action. Subsequently, the article focuses on analyzing the impact of green fiscal policies on corporate performance, revealing potential issues, and proposing relevant suggestions. In order to effectively improve the quality of China's green fiscal policy and play its role in economic regulation, it is necessary to further strengthen the current green fiscal framework, promote the use of funds to encourage technological innovation in enterprises, and have a positive impact on the sustainable development performance of enterprises.