Evaluation of the implementation effects and the influencing factors of resource tax in China

Abstract: Analyzing a policy's implementation efficiency and the factors influencing it can help improve the policy. Because China's resource tax policy varies by province, it is more meaningful to consider the implementation efficiency from the provincial level. Using provincial panel data of China from 2009 to 2017, this study measures the efficiency of tax resource policies utilizing the slacks-based measure integrating the data envelopment analysis (SBM-DEA) method containing the undesired output. Then, the Tobit model is used to verify the factors affecting the efficiency. The results show that the annual average efficiency of resource tax in China is between 0.4 and 0.7, with obvious regional and provincial differences due to scale efficiency. However, the comprehensive efficiency of resource tax policies in most provinces is fluctuating and rising, indicating that resource tax policies can gradually play a role. Further examining the influencing factors shows that the pollution treatment cost, the proportion of secondary industry, and energy consumption have a significant positive effect on efficiency, while the level of economic development has an obvious negative effect. Finally, to formulate plans to fully leverage their tax advantages, all provincial governments should consider the differences in efficiency.