The Impact of Environmental ProtectionTax Reform on Corporate Performance:An Empirical Analysis in China

China has long been deficient in government regulation and environmental awareness due to the limitations of its development model.To pursue profits, firms often ignore environmental protection or adopt strategies to avoid policies, which intensifies the contradiction between environment and economic development.In the face of this challenge, China is promoting economic development while strengthening environmental protection.From the experience of developed countries, through the implementation of the Pigovian tax and other corrective taxes, the cost of pollution is internalized to deal with the environmental problems brought by industrialization.For example, the Netherlands, the United States, Germany, Finland, Denmark, and the United Kingdom have introduced tax policies on water pollution, sulfur dioxide emissions,