Yulia V. Leontyeva

The structural transformation of the power industry is a critical pathway for China to achieve its “Dual Carbon” goals. This study investigates the pre-emptive impact of policy signals, rather than the implemented effects, of China’s environmental protection tax reform on this transformation. Utilizing panel data from four key power sectors (thermal, hydro, wind, and solar) from 2013 to 2022, we employ a Difference-in-Differences model to empirically analyze how the policy signal released during the legislative review of the Environmental Protection Tax Law in 2016 influenced the structural composition of the industry. The core focus is on the installed capacity contribution of thermal power. The findings reveal three key insights. First, the policy signal itself exerted a significant and direct inhibitory effect on the installed capacity share of thermal power, with an average reduction of 0.0998 units, demonstrating its power to reshape market expectations and investment directions prior to actual tax enforcement. Second, the levelized cost of electricity served as a fundamental market constraint, exhibiting a substantial negative impact on thermal power’s capacity share with an average inhibitory effect of 1.046 units. Third, the study uncovers complex moderating mechanisms: (1) a “policy-cost synergy” where declining clean energy costs amplifies the signal’s effect; (2) a “technology-regulation game” where innovation in emission reduction patents by thermal power firms weakens the policy pressure, indicating strategic compliance; and (3) a moderating role of government investment in waste gas treatment, which can dilute the intended policy constraint. Theoretically, this study builds a “political signal-cost expectation-industrial restructuring” framework, linking the management of expectations regarding tax reform with corporate decision theory. In practice, the study confirms the effectiveness of political signals as a management tool.

This study investigates the impact of tax incentives on the financial performance of wind power companies in China, particularly in the context of the global shift towards renewable energy. Wind power has become a key component of China’s clean energy strategy, especially since the “Eleventh Five-Year Plan”, which has fostered industry growth through financial subsidies and tax policies. Despite these efforts, issues such as subsidy misuse have prompted reforms, linking financial support to performance. Using data from 76 listed Chinese wind power companies between 2013 and 2023, this research employs a multiple linear regression model to evaluate the short- and long-term effects of corporate income tax and value-added tax (VAT) incentives on financial performance. Results show that tax incentives significantly enhance long-term financial performance, as indicated by Tobin’s Q, but their impact on short-term measures like return on assets (ROA) is more limited. Firms appear to utilize these incentives primarily for innovation and expansion, contributing to sustained growth rather than immediate gains. The findings suggest that while tax incentives are essential for fostering long-term growth in capital-intensive industries like wind power, they do not significantly enhance short-term financial health. Therefore, policymakers should consider complementing tax incentives with additional mechanisms, such as direct subsidies or low-interest loans, to improve short-term financial stability and operational support. The work substantiates that tax incentives are effective in promoting long-term financial performance but have limited short-term benefits. Future policy frameworks should adopt a more integrated approach, using a combination of tools to support both immediate financial stability and sustainable long-term growth.

Vigorously developing emerging marine industries are an important way for China to implement the strategy of “Sea Power Nation”, and improving the ability of port enterprises to prevent financial and tax risks is a key link in accelerating the high-quality development of the marine economy. The research objective of this paper is to construct a reasonable early warning financial model for emerging port industries in Guangdong, Hong Kong, and Macao Greater Bay Area. The research hypothesis is that the original Z-SCORE model and F-SCORE model are not able to accurately predict the financial risk of emerging marine industries. The data of typical port enterprises are utilized to compare the financial risk; after that risk assessment and early warning are carried out. This paper adopts the Delphi method to assign weights to different indicators and utilizes the Analytic Hierarchy Process method to derive a financial and tax early warning model applicable to Guangdong, Hong Kong, and Macao Greater Bay Area. The results of the study found that the traditional “Z-score model” and “F-score model” are less applicable to the emerging industries in the ports of Guangdong, Hong Kong, and Macao Greater Bay Area. This paper will construct a financial and tax risk control model corresponding to the development of port emerging industries and provide early warning when exceeding a certain threshold to help enterprises develop better. In addition, this paper also puts forward policy suggestions for risk management of emerging port industries from the aspects of system improvement and government-enterprise linkage.

In recent years, the transportation industry has enjoyed the benefits brought about by changes in the national tax policy. The purpose of this paper is to analyze the impact of the change from Business Tax to Value-Added Tax (BT-to-VAT) on the tax burden of transport enterprises in various regions of China. Based on the cross-regional characteristics of the transportation industry, China is divided into four regions: eastern, central, western and northeast. Research hypothesis – the tax reduction effect of the BT-to-VAT tax burden is not only related to the characteristics of the enterprise itself, but also related to the regional environment and market integration factors of China. Using the Difference in differences (DID) method, the data covers 22 listed companies from 2009 to 2020. The paper analyzes the internal characteristics of the enterprise itself, the influence of the external environment and the degree of industrial integration on the enterprise, and the reasons for the difference. Empirical research shows that BT-to-VAT reduces the tax burden of enterprises, the eastern region has the least impact on the ratio of corporate income tax expenses to operating income, while the central and western regions have relatively greater impacts. The scale of the enterprise and the level of economic development have a positive effect on the financial efficiency of the enterprise, while the non-current assets ratio and the degree of market integration have a negative effect on the tax burden. This research is beneficial to provide reference for enterprises in different regions to improve their management and to formulate macro policies by relevant national departments.

In order to promote the high-quality and sustainable development of the alternative fuel vehicle industry, the Chinese government has given strong tax policy support. In China, the corporate income tax rate is uniformly 25%, and the government gives tax incentives to high-tech enterprises that meet the relevant appraisal standards: the tax rate is reduced by 15%. The purpose of this work is to analyze the impact of China's tax policy on the production of vehicles using alternative fuels and to assess the significance of tax incentives for the formation of significant incentives for the development of this production. The hypothesis of the study is to confirm the need to provide incentives for high-tech production of vehicles using alternative fuel to maintain a positive financial result of such production. This paper uses the OLS analysis model. Deriving data from the annual financial reports of BYD, Geely, SAIC Motor and Great Wall Motor from 2011 to 2020, analysis is carried out of the impact of income tax rate and debt ratio on net profit margin. Research has confirmed that income tax is positively correlated with net profit margin, and the debt ratio is negatively correlated with the corporate net profit margin. The higher the debt ratio, the less conducive to the improvement of the company's net profit margin. Corporate net profit margins are more sensitive to changes in income tax. This also provides an effective way to improve the tax policy to promote the development of new energy vehicles. Tax policy is the most effective tool for the government to carry out macro-control, helping to avoid the harm caused by "market failure" and guiding the development direction of the production of vehicles using alternative fuels.

Efficient and reliable public transport is of prime concern to city dwellers. To function efficiently, public transport generally needs subsidies from the state or local government. Our goal was to design and develop an alternative model of property tax that would provide financing for public transport. It was hypothesised that if the market value of real estate depends on the proximity of public transport, property tax can be a reliable source of financing for public transport. Based on the hedonic pricing theory, we used multiple regression to measure the impact of public transport proximity on the value of residential property. The data on the market value of property and property tax was taken from statistical tax reporting forms of the Federal Tax Service. The data on various public transport infrastructure facilities was used from the specialized open registers. We tested our alternative model of property tax, using the case of the Ekaterinburg Metro and the Tram and Trolleybus Company, through regression analysis of 7,685 objects of residential property in the City of Ekaterinburg. It was found that the efficiency of the underground service is higher than that of the city’s tram network. On the average, the proximity of underground stations increases the value of housing by over 6%. As predictive estimation of the amount of tax determined by the proximity of public transport showed, the alternative model of property tax is sufficient to cover capital expenditures of the city’s public transport operators and could, therefore, contribute to further expansion and modernization of the transport network.

Today, transport-related charges hold an important place in practically all national tax systems. They constantly updated to stay in line with the goals of "green policy". Such charges are becoming a mechanism of price regulation that forces car users to change their consumption patterns. The purpose of this article is to study the impacts that the existing structure of transport-related charges has on the environment and propose measures for making them more environmentally-focused. Transport-related charges were classified either as fixed or variable depending on whether the size of the charge is in proportion to the intensity of car use. The environmental impact of transport-related charges was identified through analysis of the functions that each levy performs. The analysis conducted in the study proved that Russia practically lacks regulation targeting the behavior of producers and consumers of motor vehicles and fuel. The existing system of transport related charges is revenue-focused, i.e., it satisfactorily performs only its fiscal function. At the same time, the regulatory potential function of transport-related charges in Russia remains practically untapped. The system of transport-related charges in Russia is dominated by fixed charges, the amount of which does not depend on the intensity of car use. Variable transport-related charges in Russia are fewer in number, so they cannot serve as a driver for behavior change towards sustained environmentally friendly habits in car owners. The article outlines a set of proposals for making some fixed transport-related charges in Russia more environmentally-focused and for increasing the environmental benefits of variable transport-related charges.

The purpose of this study is to assess and differentiate between the externalities imposed on people living in rural and urban areas of Russia. The hypothesis of the study is that people living in areas with different levels of urbanization have different views on the pros and cons of mass car ownership. As a result of this study, various types of the positive and negative external effects of mass car ownership were identified. A survey was conducted on people living in Sverdlovsk Region to assess the externalities. The survey was conducted in October 2018. For the purposes of analysis, the filled questionnaires were divided on the basis of car ownership. Of the 390 respondents aged 18 and above, 62% had a car and 38% did not. The main differentiation factor in the perception of the effects is the respondents’ place of residence. A relationship was proven between the size of the place of residence and the score that the respondents gave to the positive and negative effects of mass car ownership: the smaller the area, the higher they appreciate the positive effects and the lower score they give to the negative effects of mass car ownership. Consequently, the bigger the settlement where the respondents live, the smaller score they give to the positive effects and the bigger emphasis they place on the negative effects of mass car ownership. The assessment of externalities can be used to justify the amount of transport payments in urban and rural areas.