LAUSR

Abstract Environmental taxes can play an important role in reducing pollution issues. However, they also have an impact on the entire economy. This paper uses panel data from Shandong Province in China from 2005 to 2016 to analyze the impact of pollutant charges on the economic and environmental performances. The results show that the payment transfer of pollutant charges can influence the output but the effects varies with regions and time. Pollutant charges increase the resource utilization efficiency and promote economic growth. After controlling output and industry structure, pollutant charges on waste gas improve the air quality. This study confirms the existence of the environmental tax double dividend and provides a reference for new environmental protection taxes.