Exploring the impacts of China’s water resource tax policies: A trade-off between economic development and ecological protection

The reform of water resource tax policies is an important measure in the process China’s green economic transformation. Therefore, improving accuracy policy impact prediction crucial for policymakers to make correct decisions. This study focused on composed and pollution tax. A computable general equilibrium (WCGE) model extended from traditional was proposed simulate impacts changes determine optimal rate range. Water self-purification capacity agricultural subsidies were first considered equilibrium, providing a simulation–evaluation method that could support analysis alternatives more realistic perspective. results indicated synergistically promote conservation reduction, negative economy when they are raised together lighter than burden alone. not only has best water-saving effect but also greatest economy. Technological progress reducing conducive adverse increases Taxation can improve social welfare, level combination 4 Yuan/m3, range 5.6–8.4 Yuan/pollution equivalent. demonstrate positive role government environmental governance provide scientific basis adjust direction reform, strengthen collaborative design policies, select level. Also, solutions in-depth trade-offs between violation risk system benefits generate reliable by reproducing actual situations. Moreover, constructed this applicable analyze other types policies.