Greenwashing behavior leads to environmental and economic inefficiencies, seriously hindering sustainable economic development. The introduction of the VAT carry-forward tax refund policy in China in 2018 offers the possibility of reducing the overall level of greenwashing in the market. This paper uses the data of non-financial listed companies on the A-share market from 2012 to 2022 as samples, and employs a difference-in-differences model to study the impact of the VAT carry-forward tax refund policy on the greenwashing behavior of Chinese enterprises. A mediating model is also established to explore the influencing mechanism. The conclusion is that the implementation of the VAT carry-forward tax refund policy, by promoting green innovation among enterprises, has to some extent curbed their greenwashing behavior. Enterprises that are state-owned, located in the central and western regions, and have a higher capital intensity are more affected by this policy, and the inhibitory effect on their greenwashing behavior is more pronounced.
Ziyi Yan (Wed,) studied this question.