An evaluation of environmental tax in China

China has implemented a series of environmental tax measures that can be utilized to achieve its dual carbon goals of reaching peak carbon emissions by2030 and carbon neutrality by 2060. These include environmental taxes on pollution and resources as well as tax incentives to encourage environmentally friendly activities. While they have shown positive effects in reducing pollution and encouraging technological innovation, they also present significant limitations including regional disparities, high compliance burdens, and insufficient ex-ante and ex-post evaluation mechanisms. This article provides a comprehensive qualitative legal analysis of China’s existing environmental tax measures. It evaluates both positive impacts and limitations of key instruments including the environmental protection tax (EPT), the resource tax, and various environmental tax incentives. The analysis highlights that, while these tax measures contribute to environmental sustainability, the system remains fragmented and under developed in several aspects. This article concludes with policy recommendations focused on establishing a comprehensive legal framework, improving tax administration, and strengthening legal evaluation mechanisms to ensure that China’s environmental tax system effectively supports its long-term ecological and economic objectives.