Using China’s environmental tax reform in 2018 as a quasi-natural experiment, this paper identifies the effect of raising tax rates on reducing pollution based on micro-level data of over 19 thousand firms nationwide. We estimate that for every unit of tax rate increase, the discharge...

Polluting firms' relocation results in the efficiency loss of the environmental policy. This paper provides a systematic study of the water pollution relocation driven by the 11th Five-Year Plan pollution reduction mandates in China. We explore a unique dataset of the environmental statistics,...