An empirical study on “double dividend” in China´s existing environmental taxation

Based on a literature review on the theory of ldquodouble dividendrdquo, this paper is designed to carry out an empirical study on the issue whether there is a ldquodouble dividendrdquo effect in China´s existing environmental tax system. The empirical analysis shows that: (1) under the current scale of environmental tax revenues in China, there is no ldquodouble dividendrdquo effect; (2) there is still a weak ldquogreenrdquo effect on pollution reduction and this ldquogreenrdquo effect may not come into effect instantly after the green tax reform is carried out and it needs more time; (3) taxes promote fixed asset investment of the society, and maintain it at a high level in the long term; (4) On the distribution effect and employment effect, environmental taxes do not play their corresponding role in China. As a result, there is no ldquodouble dividendrdquo effect in China´s existing environmental tax composition, but there is great potential for a ldquoGreen Taxrdquo reform.