A Comparative Study on India’s Green Tax Policies Vis-a-Vis China with Reference to Environmental Justice in the Automobile Industry

Abstract

As part of green economics, taxes are imposed on emissions of pollutants that adversely impact the environment and public health to reward more innovative, environmentally sustainable, and low-carbon resource use. There are still many nation-states testing the concept of green taxation. Many environmental performance indicators place India low on the list of countries with the worst pollution. One of the main sources of pollution is vehicle exhaust. Green taxes will be imposed on older motor vehicles under guidelines released by the Indian government in 2021. The United Nations Framework Convention on Climate Change received the Indian Nationally Determined Contribution Report in 2022. Taxonomies and low-carbon transport systems were prioritized in India, and incentives and tax breaks were offered to encourage the manufacture and use of vehicles that consume more ethanol. Academic discussions and literature on the subject are still lacking among the masses. Researchers intend to analyze the legal and economic measures taken by the Indian Government to curb vehicular pollution against this background. Due to its significant contribution to air and water pollution, as well as greenhouse gas emissions, the automobile industry has come under increasing scrutiny in recent years. India and China, for instance, have implemented green tax policies to reduce the automotive sector’s environmental footprint and promote environmental sustainability. These policies are effective, but not all of them address the disproportionate impact of environmental injustice on vulnerable populations. Specifically, this study examines the impact of Indian green tax policies on environmental justice in the automobile industry as compared to those in China. A key aim of this study is to provide insights into the strengths and weaknesses of the green taxation policies adopted by each country in the automotive sector, as well as their implications for achieving environmental justice, by analyzing the scope, enforcement, impact on vulnerable communities, industry implications, and alignment with international commitments.