Balancing profit and planet: The effect of corporate tax rates on environmental quality and innovation in Asian Countries

IF 4.7 2区 环境科学与生态学 Q2 ENVIRONMENTAL SCIENCES
Zhenyu Xu , Umar Farooq , Afaf Ahmed , Abdullah Masood
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Abstract

In contemporary literature, extensive research has focused on the influence of environmental taxation on the environmental performance of industrial sectors. However, it is still uncommon in the existing literature how corporate statutory tax rate (CTR) affects environmental performance. Therefore, this study aims to empirically investigate the relationship between CTR and environmental quality (ENQ) as well as environmental innovation (EIN). To conduct this analysis, we utilized 19 years of financial data spanning from 2001 to 2019 across all 48 Asian economies. Our research employed both panel quantile regression (PQR) and system GMM models for the regression analysis. The empirical findings reveal that the corporate statutory tax rate has a positive impact on CO2 emissions, leading to deterioration of the environmental quality, while simultaneously exerting a negative influence on environmental innovation, inhibiting green innovation. These effects of the CTR on ENQ and EIN remained consistent even when controlling for factors such as economic growth, foreign capital, financial development, and environmental taxation. These findings have significant policy implications, suggesting the need for a reevaluation of current tax policies and the introduction of tax rebates for companies striving to enhance their environmental sustainability. This study contributes to the literature by shedding light on the adverse consequences of high taxation on the environmental performance of businesses.

平衡利润与地球:企业税率对亚洲国家环境质量和创新的影响
在当代文献中,大量研究集中于环境税对工业部门环境绩效的影响。然而,企业法定税率(CTR)如何影响环境绩效,在现有文献中仍不多见。因此,本研究旨在实证研究企业法定税率与环境质量(ENQ)和环境创新(EIN)之间的关系。为了进行分析,我们使用了从 2001 年到 2019 年的 19 年财务数据,涵盖了所有 48 个亚洲经济体。我们的研究采用了面板量化回归(PQR)和系统 GMM 模型进行回归分析。实证研究结果表明,企业法定税率对二氧化碳排放有正向影响,导致环境质量恶化,同时对环境创新有负向影响,抑制绿色创新。即使控制了经济增长、外资、金融发展和环境税等因素,公司法定税率对 ENQ 和 EIN 的影响仍然是一致的。这些研究结果具有重要的政策意义,表明有必要重新评估现行税收政策,并为努力提高环境可持续性的企业提供退税。本研究阐明了高税收对企业环境绩效的不利影响,为相关文献做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Environmental Development
Environmental Development Social Sciences-Geography, Planning and Development
CiteScore
8.40
自引率
1.90%
发文量
62
审稿时长
74 days
期刊介绍: Environmental Development provides a future oriented, pro-active, authoritative source of information and learning for researchers, postgraduate students, policymakers, and managers, and bridges the gap between fundamental research and the application in management and policy practices. It stimulates the exchange and coupling of traditional scientific knowledge on the environment, with the experiential knowledge among decision makers and other stakeholders and also connects natural sciences and social and behavioral sciences. Environmental Development includes and promotes scientific work from the non-western world, and also strengthens the collaboration between the developed and developing world. Further it links environmental research to broader issues of economic and social-cultural developments, and is intended to shorten the delays between research and publication, while ensuring thorough peer review. Environmental Development also creates a forum for transnational communication, discussion and global action. Environmental Development is open to a broad range of disciplines and authors. The journal welcomes, in particular, contributions from a younger generation of researchers, and papers expanding the frontiers of environmental sciences, pointing at new directions and innovative answers. All submissions to Environmental Development are reviewed using the general criteria of quality, originality, precision, importance of topic and insights, clarity of exposition, which are in keeping with the journal''s aims and scope.
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