Abstract: Taking the ten high energy-consuming industries in the industrial sector as the subjects, this paper applies the co-integration analysis method to study the energy conservation and emission reduction effect of the existing tax policy. The results indicate that tax policy especially VAT policy has obvious effect on energy conservation and emission reduction of high energy-consuming industries, but the adjusting dynamics and directions are different. The adjusting strength and directions of policies of consumption tax, business tax and so on are also different at different industries. Therefore, we should give full play to the policy regulating effect of different tax categories: on one side to largely lower the unit energy consumption level of the high energy-consuming industries and improve the pollution control strength; on the other hand to promote the adjustment of industrial structures, lessen the energy kick-back effect and reduce the gross energy consumption.

Key words: tax policy; effect of energy conservation and emission reduction; high energy-consuming industry