Management Review

Management Review ›› 2023, Vol. 35 ›› Issue (2): 3-15.

• Economic and Financial Management •     Next Articles

The Moderating Effect of Improved Environmental Information Disclosure on Environmental Taxation: Based on China's Environmental CGE Model

Liu Yu1,2, Yang Shunxiang1,2, Zhang Jinzhu3, Zhou Meifang4, Liu Yawen5, Zhang Wei6   

  1. 1. Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190;
    2. School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049;
    3. School of Economics and Management, Beijing Forestry University, Beijing 100083;
    4. School of Economics, Beijing Technology and Business University, Beijing 100048;
    5. Digital Economy Laboratory, University of International Business and Economics, Beijing 100029;
    6. State Environmental Protection Key Laboratory of Environmental Planning and Policy Simulation, Chinese Academy of Environmental Planning, Beijing 100012
  • Received:2020-03-16 Online:2023-02-28 Published:2023-03-27

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Abstract: Environmental tax as a formal means and environmental information disclosure (EID) as an informal meas of environmental regulation have been widely studied and discussed. However, existing researches focus mainly on the effect from only one of the two means, with little attention to the interactive effect from both, especially to the effect of improved EID on environmental taxation. Therefore, based on the input-output table and pollutant emission data of 139 sectors in 2012, we construct the China's Environmental Computing General Equilibrium Model (CGE) to analyze the indirect effects of improved EID on environmental taxation and the spillover feedback effects among sectors. The results are as follows. (1) Improved EID could greatly offset the negative economic impact of environmental taxation. When EID is not considered, GDP decreases by 0.19%. When improved EID is considered, GDP decreases by only 0.10%. (2) The moderating effect is significantly heterogeneous in reducing emissions, as evidenced by a 0.02% and a 0.01% decrease respectively of SO2 and NOX emissions, but a 0.01% and a 0.02% increase respectively of COD and NH3 emissions. (3) Improved EID has a much larger effect of driving economy than its effect of enhancing environmental tax's role in emission reduction In addition, at the industry level, improved EID can stimulate energy consumption to shift from high-emission coal to low-emission energy products. Therefore, environmental tax policies should be coupled with the construction of EID system in order to effectively reduce the economic cost of reducing emissions.

Key words: environmental tax, environmental information disclosure (EID), moderating effect, CGE