Discussion on the Green Tax Stimulation Measure of Nitrogen Fertilizer Non- Point Source Pollution Control - Taking the Dongting Lake Area in China as a Case

Discussion on the Green Tax Stimulation Measure of Nitrogen Fertilizer Non-Point Source Pollution Control – Taking the Dongting Lake Area in China as a Case

A study on designing the tax of nitrogen fertilizer can provide a new method for controlling nitrogen fertilizer non-point source pollution. The tax design of nitrogen fertilizer was discussed by utilizing the external theory and the demand elasticity theory. The results indicated that the coefficient of price elasticity of nitrogen fertilizer demand is -0.21, which instructed that the market demand is in lack of elasticity in the short period and the impact of nitrogen fertilizer manufacturers is subtle. The 11 counties (cities and boroughs) in the Dongting Lake area in China, where the farmland nitrogen application surpassed the average ecological fertilization dosage, is listed to the taxation scope of nitrogen fertilizer tax. The environment loss will reduce 0.07 hundred million RMB yuan and the revenue will increase 0.89 hundred million RMB yuan in the country after levying on nitrogen fertilizer. The loss, which was brought by the decreasing food supplies production, will be 0.58 hundred million RMB yuan and the net social benefit will be 0.38 hundred million RMB yuan following revenue collection. The variation scope of the increasing expenditure of farmers will range from 0.95 to 1.49%. The variation scope of the income of farmers will range from -8.41 to 6.44%. The 5 areas, Yunxi Borough, Junshan Borough, Hanshou County, Jinshi City, and Ziyang Borough, had an increase in food supplies production after the revenue collection. The environment loss will reduce 0.01 hundred million RMB yuan and the revenue will increase 0.16 hundred million RMB yuan in the country after levying on nitrogen fertilizer. The economic benefits, which was brought by the increasing cereals production, will be 0.67 hundred million RMB yuan and the net social benefit will be 0.84 hundred million RMB yuan after revenue collection. The variation scope of the increasing expenditure of farmers will range from 0.95 to 1.06%. The variation scope of the increasing income of farmers will range from 0.69 to 6.44%. Considering the entire social welfare, taxation of nitrogen fertilizer will have more advantages than disadvantages in the Dongting Lake area.