The effect of cleaner and sustainable sewage fee-to-tax on business innovation. (10th August 2022)

• Record Type: Journal Article
• Authors: Shang, Shuying; Chen, Zeming; Shen, Zhangfeng; Salman Shabbir, Muhammad; Bokhari, Awais; Han, Ning; Klemeš, Jiří Jaromír
• Is Part Of: Journal of cleaner production. Volume 361(2022)
• Publication Date: 2022-08-10
• Subjects: Fee to tax -- Sustainable environmental regulation -- Corporate innovation -- Porter hypothesis; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2022.132287
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: Can reform of "sewage fee-to-tax" promote corporate technological innovation by internalising environmental cost and strengthening environmental control? The difference between environmental tax and sewage charges were analysed along with summarising the economic consequences of environmental tax. The influence mechanism of the reform of "sewage fee-to-tax" on corporate technological innovation from the dual perspectives of tax and environmental regulation, based on tax theory, Porter hypothesis, and supply and demand theory, were explored. Shanghai and Shenzhen A-share listed companies about 1, 150 in the years 2017–2021 are taken as the research sample. The impact of imposing environmental taxes on corporate technological innovation was empirically tested. It is found that imposing an environmental tax stimulates the innovation motivation of enterprises and significantly improves the input and output of corporate technology innovation. This paper has profound implications for perfecting the cleaner sustainable environmental tax system, stimulating corporate innovation, and promoting economic transformation. Highlights: The difference between sustainable environmental tax and sewage charges were analysed. The impact of imposing cleaner environmental taxes on corporate innovation was tested. The impact of the "sewage fee-to-tax" reform on corporate innovation was explored.