The impacts of environmental protection tax reform in resource-based regions based on the CGE model

Economic transformation and development serve as effective strategies for resource-based regions to avoid the "resource curse." By optimizing industrial structure and enhancing energy efficiency through government macro-regulation, these regions can achieve sustainable and environment-friendly growth. The general equilibrium model is widely employed to assess the effectiveness of economic transformation and development. In this study, we constructed a provincial social accounting matrix based on macro data from Shanxi, China, to examine the impact of different environmental protection tax rates on the macro economy, industrial structure, and energy consumption. The findings reveal that the implementation of environmental protection tax has successfully optimized the industrial structure and improved energy utilization efficiency. However, it has also led to a slight decline in total output. Hence, it is imperative to establish a more balanced and reasonable environmental protection tax rate to further promote economic transformation and development in resource-based areas. Consequently, this paper puts forth policy recommendations aimed at achieving a harmonious balance between ecological preservation and economic progress in resource-based regions, ultimately enhancing the overall quality of economic development in such areas.