This paper measures the
elasticity of the fixed assets investment of state-owned enterprises, private enterprises and foreign-funded enterprises in China,
and analyzes the impact of rising environmental control costs on fixed asset
investment decisions of three types of enterprises. The study found that during
the inspection period, private enterprises had the greatest elasticity of
rising environmental control costs, and state-owned enterprises had the least
elasticity; the impact of rising environmental control costs on state-owned
enterprises and private enterprise investment is positive, and the impact on
foreign-funded enterprises is negative. Therefore, we suggest that for private
enterprises, the government can give tax incentives or supporting arrangements.
We should avoid private enterprises facing the pressure of environmental
control costs, and choose to withdraw from the market because of insufficient
policy support.
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