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Green financing and environmental risk mitigation: is environmental protection tax law that important?

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Abstract

This research examines green finance’s role in mitigating environmental concerns in China. The significance of the tax code for environmental protection is examined in detail. The research examines the association between green financing and lowering environmental hazards using regression analysis tests, dummy estimation techniques, and robustness analysis on data collected between 2003 and 2018. This research demonstrates that the Environmental Protection Tax Law is a valuable policy instrument for advancing environmentally responsible financing and addressing environmental issues. Green money was shown to be associated with lower environmental hazards. This study’s results imply that tax legislation has been implemented to safeguard the environment in China, and more money has been placed into environmentally beneficial initiatives. The impact of environmental protection legislation on greenhouse gas emissions, urbanization, and CO2 emissions is also highlighted. These findings are significant for environmentalists, policymakers, and the financial and banking sectors because they demonstrate how to develop effective strategies to advance green finance and mitigate ecological threats.

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Funding

This work was sponsored in part by the Major Program of Chinese Ministry of Education Key Research Institute in University: “Research on Ecological Civilization and Evolution of Environmental Law Functions” (NO. 19JJD820004).

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Authors and Affiliations

  1. Research Institute of Environmental Law, Wuhan University, Wuhan, 430072, China

    Zhongming **a

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  1. Zhongming **a
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Conceptualization and data collection, methodology, software and validation, writing of original draft: Zhongming **a.

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Correspondence to Zhongming **a.

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The authors declared that they have no known competing financial interests or personal relationships, which seem to affect the work reported in this article. We declare that we have no human participants, human data, or human issues.

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The authors declare no competing interests.

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**a, Z. Green financing and environmental risk mitigation: is environmental protection tax law that important?. Environ Sci Pollut Res 30, 96531–96542 (2023). https://doi.org/10.1007/s11356-023-29103-6

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