News

\r\n The old traders’ adage “better to travel than arrive” has been true in 2017. Last year wa...
\r\n President Donald Trump signed on 28 March 2017 an executive order to unravel former President B...
\r\n According to some scientists, the fingerprint of human-caused climate change has been found on ...
\r\n Australia’s federal government has announced it will ratify and implement the OPCAT Treaty, O...
\r\n Nurses and teachers are among those bearing the brunt of a debt crisis rooted in the mistaken b...

Follow us

Articles

CHINA’S ROLE AND CONTRIBUTION IN THE GLOBAL GOVERNANCE OF CLIMATE CHANGE

Haifeng Deng, Paolo Davide Farah and Anna Wang – ‘China’s Role and Contribution in the Global Governance of Climate Change: Institutional Adjustments for Carbon Tax Introduction, Collection and Management in China’ – Journal of World Energy Law and Business 8(12) 2015. Online: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2695612

Haifeng Deng, Associate Professor at Tsinghua University, Paolo Davide Farah, Principal Investigator and Research Scientist at gLAWcal, and Anna Wang, PhD Candidate at Tsinghua University, provide a summary of China’s Tax Laws, their relationship with environmental policy, and make proposals for future reform.

The authors begin by noting how different types of taxation might promote environmentally friendly policies. It is noted that taxes on oil consumption, and, on the other hand, preferential tax policies for use of clean energy sources might incentivise use of said cleaner energies and thus assist in the fight against climate change. Meanwhile, resource taxes on commodities like metals and salt might promote efficient use of said resources.

The authors comment on the new Draft Environmental Tax Law promulgated in 2015, which imposes new tax reforms which promote environmentally friendly behaviour. It is observed that there is a lack of stipulated supervision procedures regarding the responsibilities which the Draft Environmental Tax imposes upon environmental authorities, leading the authors to doubt whether its implementation will be practically significant. Thus, it is suggested that future reform efforts involve the construction of an overarching committee tasked with handling issues pertaining to environmental tax, and that improvements be made to the transparency of and integration between relevant institutions.

Furthermore, it is suggested that local governments in China have a strong tendency to pursue maximisation of economic growth, with little concern for how this pursuit may affect environmental interests. However, it is noted that certain developments, such as the implementation by the State Council of an evaluation system that measures provincial governments according to their compliance with air pollution targets, may help to achieve an arguably more appropriate balance between the consideration of economic and environmental concerns.

The authors note that failure to comply with tax laws in China may result in an offender being subject to penalties of a reputational, financial and/or business-restricting nature. It is argued that the revenue collected from financial penalties should be used by the government to fund environmentally-friendly projects.