Academic journal article Asian Social Science

The Establishment of the Green Tax Policy in China - to Accelerate the Construction of Circular Economy Experimental Zone in Qaidam Basin of Qinghai Province as an Example

Academic journal article Asian Social Science

The Establishment of the Green Tax Policy in China - to Accelerate the Construction of Circular Economy Experimental Zone in Qaidam Basin of Qinghai Province as an Example

Article excerpt


"The overall plan on the test zone of circular economy in Qaidam area of Qinghai province" provided approval by the State Council on March 15, 2010, which was the second regional recycling economy program after Gansu Province. As the largest circular economy area, its success would have far-reaching effects. As the basic means of government regulation, the taxation would play very important role in the development of recycling economy. The establishment and improvement of green tax policy would be the effective means to impel the construction of circular economy test zone in Qaidam area.

Keywords: Qaidam area, circular economy, green tax

1. Introduction

The circular economy is one economic model which is conducive to conserve resources and protection environment. Within the large system of human, resources and technology, the economic growth model transforms from extensive to intensive, and the product model changes from "resources-products-waste" which rely on resources consumption to "resources-products-reproduction resources" which rely on resources recycling. In this economic model, according to the substance loop of natural ecosystem and the flows of energy, resource efficient recycling is the core, following the principle of "reduction quantitative, reuse and resources ".

To make circular economy in China as soon as possible to be comprehensive, in-depth implementation, and to play an active role in its economic construction, the government must be matched with the relevant policies and instruments. Tax as the basic means of government regulation, most can play the role to move mountains with few resources. Therefore, the establishment of a green tax system is especially important.

There exists a sizable literature on the acceptance of green tax. The relationship between economy and green tax has been widely analyzed in the last decade. Many studies have shown that conventional results from tax theory are not carried over to the models of environmental protection in China. In recent years, with the development of economy, the analysis of green taxation has been extended to the problem of environmental regulations.

Yan Chen (2005) thought along with the environmental problem getting obvious in China, green taxation, as one of the principal means of governments' macro-regulation, is also very important for China's environmental protection. Aizhu Zhang (2006) and Jingqing Hu(2006) and Yun Ding (2007) expressed the view that the Green tax system is one of the effective economic means with theoretical background and empirical confirmation. The required innovation in a green tax system should be carried out in China by using the successful overseas experience for reference, and the tax items and tax rates of the resource tax and the like in the existing system should be adjusted, and the tax-related regulations concerning the environmental protection should be updated so as to formulate the normal green tax system.

Yajun Wu (2008) opined that the transitional development of China's economy is facing the great challenge of resource and environmental constraints and the changing economic growth pattern. Green taxation possesses the efficiency mechanism of controlling pollution and facilitating the use of natural resources efficiently. Yansong Zhu (2009) opined that against the increasingly serious environmental pollution problems and waste of resources and energy security issues, government needs to use economic instruments of tax to address. China's government should bring forward timely to reform the resource tax, to research the imposition of environmental taxes, and to construct a green tax system in China. It is also suggested (Bai, 2009) that construction of a set of green taxation is a path. China shall take for future tax reform, and come up with a fundamental idea to start to levy a new tax - the environmental tax.

Liping Liu (2006) and Meng Li & Haibo Zhang (2008) and Jing Huang & Mingrui Xu (2009) and Xiaolu Gao (2010) and Kuifang Zhan (2011) suggested that establishing green tax systems is an important step in achieving sustainable development and constructing a harmonious society in China, and should draw on the experiences of developed countries to establish green tax system with Chinese characteristics including the complete set system and implementation of a green tax. …

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