Green supply chains and high-quality development of enterprises under tax reduction and fee decrease

Abstract

Against the backdrop of global economic challenges and China's pivot to a green economy, tax and fee reduction policies are pivotal in driving enterprise innovation and sustainable development. Green supply chains are central to this shift, crucially balancing economic progress with environmental goals. Utilizing data spanning from 2011 to 2022 from publicly traded companies in China, this research delves into the influence of green supply chain practices on fostering high-quality corporate growth within the framework of tax relief and fee reduction policies. The research finds that green supply chains significantly promote high-quality corporate development, with their mechanisms primarily reflected in alleviating corporate tax burdens and enhancing innovation levels. Furthermore, the extent of tax relief and fee reduction measures serves as a positive moderator between green supply chain management and enhanced corporate development quality. Nonetheless, this moderating influence exhibits variability depending on the ownership configuration of the firm and the nature of its pollution impact. This study's findings underscore the importance of aligning policy incentives with corporate strategies to achieve sustainable economic growth, offering valuable insights for both policymakers and corporate leaders navigating the complex landscape of environmental regulation and market competition.