Environmental tax reform and green transformation of SMEs in a resource-based city: Policy constraints and breakthrough pathways from Anyang, China

Abstract

This study examines how environmental tax reform shapes the green transformation of small and medium-sized enterprises (SMEs) in Anyang, China, a resource-based industrial city. Based on field visits to 62 SMEs, 128 interviews and 247 valid questionnaire responses, the study analyses the policy effects, implementation constraints and transformation outcomes of environmental taxation. A multidimensional evaluation framework is used to assess economic, environmental and social performance. The findings show that environmental tax reform promotes SME green transformation through three mechanisms: cost constraint, policy incentives and market competition. However, transformation performance remains uneven. Environmental outcomes are relatively strong, with an average score of 72.3, while economic outcomes remain weak, with an average score of 45.8. Only 10.1% of sampled firms reached an excellent transformation level. The main constraints include limited policy accessibility, weak interdepartmental coordination, insufficient finance and technology support, and low internal management capacity. The study contributes to policy practice by proposing coordinated measures involving differentiated tax policy, green finance, technology services and enterprise capability building.