Environmental Protection Tax, Environmental Monitoring Agency Behavior and Green Technology Innovation of Resource-Based Enterprises: Empirical Evidence from China

This paper explores the impact of environmental protection tax on green technology innovation of Chinese resource-based enterprises and behavior of third-party environmental monitoring institutions. It uses game theory to analyze participants' strategy selections, and uses the triple difference method to empirically test the promotion effect. Our robust results find that (1) Chinese environmental tax policy effectively promotes the green innovation of resource-based enterprises and standardizes the behavior of third-party monitoring institutions; (2) local governments' actions such as increasing environmental protection tax, penalizing third-party monitoring agencies for violations, and promoting public preference for green consumption, all contribute to accelerating enterprises' green innovation; (3) the central government's increased regulation of local governments has a positive impact on enterprises and third-party monitoring institutions.