Effects of Green Taxes on Firm's Operating Costs:An Explanatory Model

摘要

In recent vears, with the rise of consumers 'environmental consciousness, environmental issues have become the greatest concern worldwide, leading developed countries to adopt green taxation as their top agenda on environmental protection and economical and social sustainability. In this study, a green tax system is first explained as a new stage in the development of an environmental tax, based on a philosophy of coexistence between economy and environment in the pursuit of sustainable development. Subsequently, based on the current status of its domestic market, a mathematical model is employed to analyze the effect of green taxes in terms of the company's operating cost. It is suggested that environment tax will promote environment protection and technology progress under uniform environment supennsion level. It is obvious that the competition in the market has served as a leverage to minimize total market pollution by magnifying the effect of green tax and scpieezing out those players that cause severe environmental pollution with lagging technology.