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Mechanism and Empirical Study of Excise Tax Affecting Green Development in China’s Provincial Capitals—Mediating Effect Based on Technological Innovation

Author

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  • Xingcun Fang

    (School of Economics, Anhui University, Hefei 230601, China
    Anhui Research Center for Ecology and Economic Development, Hefei 230601, China)

  • Miaoying Li

    (School of Economics, Anhui University, Hefei 230601, China)

  • Wei-Chiao Huang

    (Department of Economics, West Michigan University, Kalamazoo, MI 49008, USA)

Abstract

Based on the panel data from 30 provincial capitals in China from 2005 to 2019, the level of green development in China’s provincial capitals was measured using the entropy value method, and their spatial distribution was analyzed using ArcGIS software. The impact of excise tax and technological innovation on the green development of China’s provincial capitals was examined by constructing a dynamic spatial Durbin model. This study shows that: (1) There are spatial differences in the green development level of the cities, with the overall characteristics of “east > central > west”; (2) The level of green development in Chinese cities has “time inertia” and positive “spatial spillover” effect; (3) Excise tax can promote green development in cities, and it exerts differential effects on green development in the eastern, central and western regions; (4) The results of the mediating effects model demonstrate that technological innovation mediates the relationship between consumption tax and green development in China’s provincial capitals.

Suggested Citation

  • Xingcun Fang & Miaoying Li & Wei-Chiao Huang, 2023. "Mechanism and Empirical Study of Excise Tax Affecting Green Development in China’s Provincial Capitals—Mediating Effect Based on Technological Innovation," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1300-:d:1030860
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    References listed on IDEAS

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    1. Wayne B. Gray & Ronald J. Shadbegian, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-256, June.
    2. repec:bla:jindec:v:46:y:1998:i:2:p:235-56 is not listed on IDEAS
    3. Johanna Gast & Katherine Gundolf & Beate Cesinger, 2017. "Doing business in a green way: A systematic review of the ecological sustainability entrepreneurship literature and future research directions," Post-Print hal-02008555, HAL.
    4. Niu, Tong & Yao, Xilong & Shao, Shuai & Li, Ding & Wang, Wenxi, 2018. "Environmental tax shocks and carbon emissions: An estimated DSGE model," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 9-17.
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    Cited by:

    1. Yiwei Wang & Guanghu Song & Shanyue Jin, 2025. "Corporate Greenwashing and Audit Risk: The Effect and Mechanism," SAGE Open, , vol. 15(4), pages 21582440251, November.

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