Author(s)

Jianguo Cai, Zhaoan Han

Corresponding Author

Zhaoan Han

Abstract

In order to develop the regional economy, there is widespread competition among local governments. Tax competition is the main form of competition among local governments. Competition brings rapid development to the regional economy, but also has a certain impact on environmental pollution. The theoretical analysis shows that regional tax reduction can attract more industries and aggravate regional environmental pollution. The empirical analysis shows that there is a significant negative correlation between regional tax level and environmental pollution, which further verifies the relationship between local tax competition and environmental pollution.

Keywords

Local government, tax competition, environmental pollution