Enterprise Ownership and Environmental Control Effects
- 1 School of Economics, Jinan University, Guangzhou, China
Abstract
This paper measures the elasticity of the fixed assets investment of state-owned enterprises, private enterprises and foreign-funded enterprises in China, and analyzes the impact of rising environmental control costs on fixed asset investment decisions of three types of enterprises. The study found that during the inspection period, private enterprises had the greatest elasticity of rising environmental control costs, and state-owned enterprises had the least elasticity; the impact of rising environmental control costs on state-owned enterprises and private enterprise investment is positive, and the impact on foreign-funded enterprises is negative. Therefore, we suggest that for private enterprises, the government can give tax incentives or supporting arrangements. We should avoid private enterprises facing the pressure of environmental control costs, and choose to withdraw from the market because of insufficient policy support.
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