Study on the Economic Effects of in Sichuan Province, China, under the Background of Dual Carbon

Green taxes mainly guide enterprises and individuals to reduce pollution and resource consumption through the role of taxation, and promote environmental protection and sustainable economic development. By using the VAR model and based on the panel data about green taxes and economic indicators in Sichuan Province from 2002 to 2019, the economic effects of green taxes in Sichuan Province are empirically analysed from the perspective of the benefits of economic growth. It is found that the implementation of green tax policy intensity in Sichuan Province has a long-term negative impact on the gross domestic product (GDP) of Sichuan Province. With the passage of time, this negative impact shows a trend of first strengthening and then gradually weakening. However, the intensity of green tax policy in Sichuan Province has a long-term positive effect on the number of people employed at the end of the year. In the short term, the green tax plays an obvious incentive effect on economic development, but with the passage of time, other economic factors begin to dominate, and the effect of the green tax gradually fades.