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An evaluation of environmental tax in China
Xu,Diheng
Xu,Diheng
Abstract
China has implemented a series of environmental tax measures that can be utilized to achieve its dual carbon goals of reaching peak carbon emissions by2030 and carbon neutrality by 2060. These include environmental taxes on pollution and resources as well as tax incentives to encourage environmentally friendly activities. While they have shown positive effects in reducing pollution and encouraging technological innovation, they also present significant limitations including regional disparities, high compliance burdens, and insufficient ex-ante and ex-post evaluation mechanisms. This article provides a comprehensive qualitative legal analysis of China’s existing environmental tax measures. It evaluates both positive impacts and limitations of key instruments including the environmental protection tax (EPT), the resource tax, and various environmental tax incentives. The analysis highlights that, while these tax measures contribute to environmental sustainability, the system remains fragmented and under developed in several aspects. This article concludes with policy recommendations focused on establishing a comprehensive legal framework, improving tax administration, and strengthening legal evaluation mechanisms to ensure that China’s environmental tax system effectively supports its long-term ecological and economic objectives.
Description
Date
2025-11-12
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Research Projects
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Keywords
environmental tax, China tax policy, sustainability, environmental protection tax, resource tax, tax incentives, policy evaluation, ex-ante and ex-post analysis, Paris Agreement, United Nations Sustainable Development Goals, OECD environmental fiscal reform, Dual carbon goals, SDG 8 - Decent Work and Economic Growth, SDG 12 - Responsible Consumption and Production, SDG 13 - Climate Action, SDG 17 - Partnerships for the Goals
Citation
Xu, D 2025, 'An evaluation of environmental tax in China', Intertax, vol. 53, no. 12, pp. 835-850. https://doi.org/10.54648/taxi2025073