Environmental taxes, technological innovation and firm performance: Evidence from China's manufacturing firms.

Based on panel data from 2011 to 2019 for heavily polluting listed firms in the manufacturing industry, this paper examines the impact of environmental taxes on technological innovation and firm performance using the propensity score matching (PSM) and differences-in-differences (DID) methods. The empirical results show the following: (i) Firm performance and innovation quantity are positively affected by environmental taxes. The average effects of environmental taxes on firm performance and innovation quantity are 1.

Environmental taxes, enterprise innovation, and environmental total factor productivity-effect test based on Porter's hypothesis.

Under the increasingly severe environmental constraints, improving environmental total factor productivity (ETFP) is the fundamental way for the sustainable development of heavily polluting enterprises. Based on 3463 panel data of A-share listed companies in China from 2011 to 2019, this paper employs Porter's hypothesis (PH) framework to explore the impact of environmental tax (EN_T) on enterprise innovation and environmental total factor productivity for the heavily polluting manufacturing industry using the propensity score matching (PSM) method. The empirical results show the following.