Impact of Green Tax Policies on ESG Investments

Abstract

This paper delves into the intrinsic relationship between green tax policies and ESG investment, exposing the inherent motivation of such investment and the influence exerted by green tax policies. Based on a unique dataset, an empirical analysis is developed to establish the evidence for the aforementioned relation. The novelty of this paper lies in outlining the impacts of green tax policies on sustainable investment behaviors through empirical data, filling the gap in existing literature which quantifies these policy effects on sustainable investment practices.By exploring the relationship between green tax policies and ESG investment, built a theoretical framework to further understand how these policies influence ESG investment. In this context, conducted an empirical analysis on a unique dataset, aiming to further clarify how green tax policies affect ESG investment. This empirical depth study allowed us to analyze and interpret the empirical results, understanding the implications of green tax policies on ESG investment decisions.The study indicates that green tax policies have a significant impact on ESG investment, thus enhancing investors' tendency to exercise sustainable investment behaviors. It is suggested to strategically apply green tax policies while supporting sustainable development. The empirical research provides policymakers with a solid basis for using green tax policies to promote ESG investment, thereby strengthening the overall layout of sustainable investment.Overall, by conducting a comprehensive study on the impact of green tax policies on ESG investment, enriching the academic research on green tax policies and ESG investment, while also providing useful suggestions for policymakers and investors.