Environmental regulation and corporate tax avoidance—Evidence from China

In this study, we used a difference-in-difference (DID) approach to analyze the effect of environmental regulation on corporate tax avoidance behavior based on China’s carbon emissions trading pilot policy of 2013. Our findings were as follows: (1) Environmental regulation has led companies to adopt further tax evasion behaviors. Furthermore, the core conclusion was confirmed after a series of robust and endogenous tests, such as parallel trends and PSM-DID (propensity score matching-difference-in-difference). (2) Environmental regulations increase tax avoidance activities by reducing corporate cash flows. (3) The influence of environmental regulation on firm tax evasion is highly pronounced among non-state-owned enterprises, big-scale enterprises, and enterprises with a high degree of industry competition.

Does the Carbon Emissions Trading Policy Increase Corporate Tax Avoidance? Evidence from China

Based on the natural experiment of carbon emissions trading pilots in China, this paper investigates the effect of environmental regulation on corporate tax avoidance. The results show that: 1) Market-incentivized environmental regulation significantly increase the level of corporate tax avoidance. 2) Heterogeneity analysis shows that the effect is more obvious on the non-state-owned firms, firms with severe financing constraints, and firms in highly competitive industries. 3) We find that the reduction of cash flow is the channel for environmental regulation to affect corporate tax avoidance. 4) Further analysis shows that government subsidies can alleviate the enhancement of tax avoidance by environmental regulation. The more government subsidies a company receives, the less tax avoidance it has.

SIMULATION RESEARCH ON CARBON EMISSIONS TRADING BASED ON BLOCKCHAIN

Global warming caused by greenhouse gases is one of the problems that need to be solved urgently. Blockchain technology can achieve automatic quota certification and settlement, providing a new direction for carbon emissions trading. This paper provides a quantitative analysis of blockchain-based carbon emissions trading through the Repast simulation platform. Firstly, it designs the blockchain-based carbon emissions trading simulation framework from a macro perspective, including identity and quota certification, quota trading, risk prevention and smart contracts management. Then, it establishes a blockchain-based carbon emissions trading simulation model and formulates the behavior rules of the government, investors and company agents and market transaction processes. Finally, it simulates the carbon emissions trading based on public chain and private chain on the Repast platform, and analyzes the simulation results.

A STUDY ON INDIVIDUAL CARBON TRADING MECHANISM BASED ON CARBON REDUCTION BONUS IN THE CONTEXT OF CHINA'S MOTOR VEHICLE RESTRICTION POLICY

In the context of the development of China's carbon emissions trading market, research into individual-based carbon trading markets is gradually gaining momentum. But due to the diversity of individual carbon emissions and the difculty of quantifying them, there are many challenges to realising a personal carbon trading market, and China has yet to develop a complete personal carbon trading system. Therefore, based on Beijing's tail number restriction policy, this paper designs a personal carbon trading market mechanism based on the carbon emissions generated by car use as a commodity, with a focus on trading mechanisms, and supported by incentive systems, regulatory systems and compensation systems. With the help of the "carbon reduction red envelope" trading platform to achieve the participation of two main bodies, multi-benet. The changes in carbon emissions under different scenarios are also analysed, and some of the conditions for the operation of the personal carbon trading mechanism proposed in this paper are calculated. The individual carbon trading mechanism proposed in this paper,solves the inconvenience caused by the license plate restriction policy to Chinese people, promotes the exible and systematic development of urban management, and provides ideas for the development of China's individual carbon trading market.