This paper estimates the impact of industrial policy on firms performance. We exploit the VAT preferential policies for enterprises in the power industry issued by the Chinese government since 2013. We find that, c. In November 2012, the 18th National Congress of the Communist Party of China (CPC) made the s. 2.1. Institutional backgroundSince the reform and opening up in China, China's economy has achieved rapid development, but at the same time, serious environmental po. 3.1. Sample selectionConsidering that the implementation time of the three policies is different, a wide range of time period will be selected as the sample cycle. Thi. Table 2 is the descriptive statistics of dependent variables. It can be observed that the original financial indicators of the company have a total of 3165 observed values. After diffe. This paper is selected from the VAT preferential policies issued by the State Administration of Taxation since 2013 for enterprises in the electric power industry dominated by gre.
[PDF Version]Table 1. VAT incentives for China's new energy industry a. Notice on comprehensive utilization of resources and VAT policy for other products. Immediate tax refund at the rate of 50% for the sale of wind power products. Notice on tax policy of nuclear power industry.
That is, taxation exerts a direct negative influence on renewable energy investment, implying that a rise in tax rate discourages investment in green energy among the leading renewable energy-producing countries. Moreover, taxation depresses the effect of innovation and international trade on green energy investment.
Nevertheless, relatively few studies focus on the impact of tax incentives on the profitability of new energy companies. Tax incentives offer an important and powerful mechanism to affect the development of an emerging industry.
Considering the advanced levels of technology and trade openness in the leading renewable energy producing countries, we believe that taxation moderates the influence of innovation and trade on green energy investment.
Notice on tax policy of nuclear power industry. Tax refund after collection and proportional tax returns for the sale of nuclear power products. The return ratio consists of three levels of 75%, 70% and 50%. Notice on VAT policy for photovoltaic power generation. Notice on continued implementation of VAT policy on photovoltaic power generation.
The results show that VAT incentives have an adverse impact on the ROE of new energy enterprises. This study further examines the variation of policy response in different locations of the industrial chain, and the time-lag and heterogeneity of China's new energy VAT refunds.
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