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Media type:
E-Book
Title:
Tax Enforcement Digitalization and Corporate Carbon Intensity
:
Evidence from the Implementation of Tax Administration Information System in China
Description:
To effectively attain the objectives of carbon peaking and carbon neutrality, it is imperative to promptly consider the government's potential to support enterprises in their pursuit of carbon emission reduction, while also considering their individual development trajectory. Countries have exhibited a growing dependence on digital technology as a means to enhance the efficiency of tax governance. Both developed and emerging economies persist in their efforts to advance the digitization of tax collection and administration. This paper examines the impact of tax enforcement digitalization on corporate carbon intensity using the "quasi-natural experiment" of "China Tax Administration Information System Phase III (CTAIS-3)" implementation and a unique firm-level sample of 241,251 enterprises and 446,238 observations obtained from China Taxation Survey (CTS). We apply the staggered-DID method, and the results reveal that digitalization of tax enforcement results in a 9.78% decrease in the carbon intensity of enterprises. This is primarily due to the increased actual tax burden placed on firms, which in turn prompts them to adjust their business strategies and prioritize their core business, as well as enhances the procedure to optimize production efficiency. Further, we demonstrate that CTAIS-3 has not affected the energy structure of corporations, despite reducing their carbon intensity. Analysis of heterogeneity uncovers a more pronounced decrease in cities characterized by a higher rate of internet penetration, industries exhibiting a higher average carbon intensity, firms facing fewer financial constraints, and non-small-and-low-profit enterprises (non-SLEs). This paper presents a novel approach to mitigating corporate carbon emissions, extends the existing body of research on carbon reduction, and contributes to an in-depth understanding of the economic repercussions of digitalizing tax enforcement. The findings of this study possess the potential to furnish policymakers with valuable insights