AN ANALYSIS OF GREEN TAXATION AND ITS EFFECT ON ECONOMIC GROWTH

Abstract

This study examined green taxation as one of the tools that governments are utilizing to protect the environment and deter enterprises from having a detrimental influence. In order to lessen the tax burden from growth-oriented elements and contribute to the reduction of pollution and the depletion of natural resources, green taxes also known as environmental, pollution, eco, and carbon taxes are implemented. Though it is primarily seen to apply in industrialized countries, the application of green taxes has not been fully approved in all nations. A few emerging nations use soft policies, such renewable energy subsidies. The policies pertaining to green taxes have encountered numerous obstacles, mostly because of their adverse effects on the economy, which include elevated rates of unemployment. Nonetheless, there are ways to implement the reforms without having a detrimental effect on the environment, as by bolstering them with complementing legislation. Furthermore, in order to develop novel production techniques, cooperation between all parties involved primarily the government, businesses, and environmental organizations is required. The primary industries that degrade the environment are those that manufacture tires, transportation equipment, and other goods. These industries can’t be completely eradicated, but there are strategies that can keep them viable and profitable.