A comparative study of carbon tax and fuel tax based on panel spatial econometric model

The balance between economic development and environmental governance has always been the focus of attention, and this has become a key issue facing in China. In recent years, the means of improving the environment through taxation are common, and it is more in line with China's national conditions. Carbon tax and fuel tax are considered to be effective environmental supervision measures, and the implementation of this policy is bound to have a critical impact on the advance of economic level. However, the implementation effects of these two mechanisms may be different, and they may also have various effects on regional development. Therefore, based on the panel data of China's 29 provinces from 2008 to 2018, we adopt the spatial autocorrelation method to explore the relationship between the economic levels of various areas. Then, establishing the panel spatial econometric model of economic growth and carbon tax, economic growth and fuel tax respectively to compare the implementation effects of the two tax policies. It turns out that there is a positive correlation between the economic growth of 29 provinces in China. And whether choosing to levy carbon tax or fuel tax, they all have their own advantages and disadvantages. Finally, according to the results of empirical analysis results, some relevant policy suggestions are put forward.