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Where Did the Environmental Dividend Go?
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TitleWhere Did the Environmental Dividend Go?  
AuthorYang Jisheng and Xu Juan  
OrganizationHuazhong University of Science and Technology; 
Key WordsEnvironmental Dividend; Benefit Allocation; Cost Transfer, Inequality 
AbstractThe allocation of environmental benefit between economic entities and regions not only affects social equity, but also closely relate to the sustainability of development. This paper builds a measurement model of distribution pattern of environmental dividend in economic entities and regions, so as to form the basis of pricing environmental compensation. It turns out that firms benefit most from environmental dividend, which accounts for up to 41%. Rural residents enjoy more environmental dividend compared to city dwellers, but the gap is shrinking, and now contributes 22% and 19% accordingly. The proportion of government rises from 14% to 19% after the reform of tax-sharing system, which, however, doesn’t come from firms. Instead, it is because of the decline in the allocation proportion of rural residents. Also, pollution cost transfers gradually from nearby to distant areas, rather than from east to west as is widely accepted. Regions in mid-eastern China have always bore more environmental cost than those in western China, although the gap is diminishing. Therefore, tax distribution between central government and local government would be more reasonable, if the weight of environmental cost in each region is considered. Meanwhile, environmental taxation exclusive price will do good job to reduce pollution. 
Serial NumberWP862 
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