Assessing the effectiveness and function of the water resources tax policy pilot in China

Ouyang, Rulin; Mu, Enlin; Yu, Yang; Chen, Ying; Hu, Jiangbo; Tong, Haoran; Cheng, Zhe

doi:10.1007/s10668-022-02667-y

Cited by 23 publications

(9 citation statements)

References 21 publications

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“…Optimizing water resource allocation through economic leverage and promoting regional water conservation has gradually become an effective water resources management method [57]. The successful experience of 10 pilot provinces of water resources tax in China also proves that the water resources tax reform policy helps promote the rational utilization and systematic management of water resources in China [58]. Through the quantitative simulation analysis of the water resources tax reform policy, it can also be found that the collection of water resources tax has an obvious incentive effect on the watersaving behavior of social water users.…”

Section: Discussionmentioning

confidence: 99%

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

Tian

Han

et al. 2023

PLoS ONE

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Whether the implementation of the water resources tax policy can stimulate the water-saving behavior of social water users is one of the important criteria for evaluating the implementation effect of the tax reform policy. Taking Hebei Province, the first tax reform pilot in China, as an example. A dynamic stochastic general equilibrium model (DSGE) with embedded water resources tax is constructed to simulate the persistent impact of water resources tax on water-saving objectives. The research shows that: (1) Water resources tax can effectively achieve the goal of water-saving and improve the utilization efficiency of water resources. (2) Levying water resources tax helps to improve the water-saving awareness of enterprises and residents. It can also encourage enterprises to optimize production structures. (3) Rational and efficient use of special water resources protection funds is the basis for ensuring the effective implementation of water resources tax. It can also improve the recycling capacity of water resources. The results show that the government should speed up formulating a reasonable water resources tax rate and accelerate the construction of water resources tax protection measures. To ensure the relatively steady state of water resources utilization and protection, and achieve the dual goals of sustainable economic development and sustainable use of water resources. The research results of this paper reveal the internal logic of the comprehensive impact of water resources tax on the economy and society and provide an important basis for the national promotion of tax reform policy.

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Section: Discussionmentioning

confidence: 99%

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

Tian

Han

et al. 2023

PLoS ONE

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“…The study found a "win-win" situation, with increased water-use efficiency and reduced total water use. Ouyang (2022) also found that a water resource taxation policy improved water-use efficiency and optimized water-use structures [20]. Biancardi et al (2021) used a differential game approach to analyze user and public authority behavior.…”

Section: Water Resource Taxmentioning

confidence: 99%

Does the Water Resource Tax Reform Bring Positive Effects to Green Innovation and Productivity in High Water-Consuming Enterprises?

Xu,

Gao,

Hua

et al. 2024

Water

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Water resources are a fundamental natural and strategic economic resource and are closely related to high-quality economic and societal development. This paper uses the pilot implementation of the water resource tax reform to explore the impact of that reform on the green innovation and total factor productivity of enterprises. The study sample includes data for high water-consuming A-share listed enterprises in Shenzhen and Shanghai, China, from 2007 to 2021; the double-difference method was used for the analysis. Study findings indicate that replacing water resource fees with taxes significantly improves the green innovation level and total factor productivity of enterprises. Green innovation has a significant partial mediating effect between the water resource tax reform and total factor productivity. The water resource tax reform promotes green innovation in enterprises, enhancing total factor productivity. When considering different types of enterprise property rights, the economic effect of the water resource tax reform is more pronounced in non-state-owned enterprises, compared to state-owned enterprises. This paper provides empirical evidence for expanding the pilot scope of the water resource tax reform.

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“…Through the pilot program, we can accumulate experience in preparation for comprehensive reform. Water resources tax reform is an essential institutional innovation [10]. In this reform, the determination of water resources tax standards is a fundamental and core task.…”

Section: Introductionmentioning

confidence: 99%

“…They pointed out that water resources tax reform forced enterprises to adjust their water use structure, accelerated technological innovation and industrial transformation and upgrading, and improved the efficiency of water resources utilization [17,18]. Water resources tax reform is an essential institutional innovation [10]. In this reform, the determination of water resources tax standards is a fundamental and core task.…”

Section: Introductionmentioning

confidence: 99%

A Comprehensive Analysis of China’s Water Resources Tax Reform

Luo,

Tian,

et al. 2024

Sustainability

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In response to the growing disparity between the supply and demand of water resources, the Chinese government has piloted a more binding and reformed water resources tax to realize the sustainable utilization of water resources. However, reasonable tax standards and their water-saving effects and economic benefits are important and worthy of attention. Therefore, in this study, we combine the virtual water theory with the price input–output model to discuss the impact of water resources taxation on the economy and its water-saving effects. The results show the following: (1) A water resources tax has a significant water-saving effect, and is predicted to save 33.12 billion cubic meters of virtual water. (2) Consumers’ expected reductions in spending on food and tobacco manufacturing and agriculture are predicted to save more virtual water at a lower economic cost. (3) The collection of water resources taxes can actively and simultaneously guide water savings in terms of consumption and production. The water consumption of the construction industry is worthy of attention. The expected output value reduction accounts for 67.2% of the total output value reduction, and its water savings account for 96% of the total water savings. Other service sectors also have ample room to optimize the utilization of their water resources.

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Assessing the effectiveness and function of the water resources tax policy pilot in China

Cited by 23 publications

References 21 publications

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

Can the water resources tax policy effectively stimulate the water saving behavior of social water users? A DSGE model embedded in water resources tax

Does the Water Resource Tax Reform Bring Positive Effects to Green Innovation and Productivity in High Water-Consuming Enterprises?

A Comprehensive Analysis of China’s Water Resources Tax Reform

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