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To further improve the green tax system and enforce the responsibility of dischargers, the Environmental Protection Tax Law was formally launched on January 1, 2018.Using empirical data from A-share listed companies spanning 2007 to 2022, this paper analyzes how environmental tax system reforms impact the quality of corporate green innovation. The empirical results indicate that (i) the environmental tax system reform can motivate enterprises to improve the quality of corporate green innovation (ii) the environmental tax reform can boost corporate green innovation quality, especially in weak market systems under rigorous media oversight(iii) the implementation of environmental tax reform enhances enterprises’ innovation incentives and improves the quality of environmental information disclosure. As such, it has a favorable impact on corporate green innovation. The effectiveness of tax reforms in promoting green innovation can be significantly enhanced through the government subsidies. © 2025 Informa UK Limited, trading as Taylor & Francis Group.
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Journal of the Asia Pacific Economy
ISSN: 1354-7860
Year: 2025
1 . 4 0 0
JCR@2023
CAS Journal Grade:4
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ESI Highly Cited Papers on the List: 0 Unfold All
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30 Days PV: 0
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