The impact of water resource taxes on total factor water efficiency

Abstract Widespread promotion of resource tax reform is critical importance in China's efforts to promote conservation and speed up the development a more ecological planet. Using Differences-in-Differences (DID) approach, this article empirically assesses impact water on total factor efficiency its mechanism action order examine effect policy from 2010 2019. According study, enhances substantially. Following battery robustness tests, conclusion remains valid. Further examination policy's finds that it encourages increases through increasing marketization, enhancing innovation capabilities, supporting industrial structure upgrades, strengthening intensity environmental regulations. The research provides basis for decision-making so further promotes pilot across country.