This study examines the Environmental Kuznets Curve (EKC) hypothesis in Indonesia and investigates the multifaceted challenges of carbon tax implementation within the country’s unique development context. Utilizing a mixed-methods approach, the quantitative analysis employs panel data from 1990 to 2024 and advanced econometric techniques to empirically confirm the inverted U-shaped EKC, revealing that Indonesia remains on the ascending phase where economic growth increases greenhouse gas (GHG) emissions. Control variables such as energy consumption, industrialization, and urbanization further contribute to emissions growth. The qualitative analysis, based on policy document reviews and stakeholder interviews, identifies key barriers to effective carbon tax enforcement, including regulatory fragmentation, industrial lobbying, technical readiness deficits, equity concerns, and political communication challenges. The novelty of this research lies in explicitly linking Indonesia’s position on the EKC ascending slope to the implementation challenges of carbon tax policy, providing a comprehensive and contextualized understanding beyond prior studies. The findings stress the imperative for gradual, integrated carbon tax policies paired with transparent revenue recycling mechanisms and effective communication strategies to overcome resistance and drive sustainable economic transition. This integrated approach offers valuable insights and actionable recommendations that align policy design with Indonesia’s developmental trajectory and climate commitments.

The governance of global climate change has grown progressively imperative. As a core economic instrument for mitigating carbon emissions, the efficacy of carbon pricing mechanisms has emerged as a critical research focus. Sweden, as a pioneer in carbon tax policy practice, offers a paradigmatic case for assessing the environmental and economic impacts of carbon taxes via its institutional design and implementation outcomes. This study endeavors to systematically dissect the action pathways, influence mechanism, and ultimate emission reduction effect of Sweden's carbon tax on the carbon emissions of the manufacturing industry. Employing a mixed-methods research approach integrating a systematic literature review and in-depth case analysis, this paper systematically reconstructs the evolutionary trajectory of Sweden's carbon tax, elaborates on its unique tax rate design and compensation mechanism, and centers on the response behavior of the manufacturing sector. The findings reveal that under the drive of policies such as carbon taxes, the emissions of Sweden's industrial sector have declined by 25% from 1990 to 2023. This validates that carbon taxes, via explicit price signals, effectively incentivize energy conservation, emission reduction, and technological innovation. The conclusion of this study is that a well-designed carbon tax system, which is both strict and flexible, can effectively facilitate the green transition of the industrial sector.

Optimal carbon reduction in supply chain under the hybrid carbon quota and carbon tax policy

As global concerns over carbon emissions intensify, regulators worldwide have implemented diverse carbon tax policies, each shaped by specific environmental objectives and economic considerations. In response, shipping carriers have increasingly invested in Research and Development (R&D) or purchased low-carbon technologies to comply with varying regulatory standards and maintain market competitiveness. Against this backdrop, this study develops game-theoretic models to analyze optimal technology licensing strategies for shipping carriers holding carbon-reduction technology in a competitive market. It further examines how regulators can set appropriate carbon tax levels to influence licensing behaviors under different policy objectives. Our findings reveal that when the implementation costs of the green technology are manageable, sole licensing can effectively align regulatory goals with carriers’ profit objectives. However, as costs increase, the patentee carrier may gradually prefer licensing strategies that restrict the technology adoption to only the carrier with lower initial carbon efficiency, deviating from the regulator's intended outcome. If the regulator's goal is to maximize the adoption of green technology, it can realign incentives or achieve suboptimal outcomes by lowering carbon taxes or offering subsidies. Conversely, if the regulator is more focused on social welfare, the most robust choice is to set the tax at a level that maximizes welfare under sole licensing conditions. Finally, we find that providing carbon tax discounts to carriers implementing green technology does not alter the decision structure but can amplify the advantages of sole licensing, resulting in higher social welfare.

Carbon Emissions and Pricing Decisions in Green Supply Chains Under Carbon Tax and Subsidy Policies

This paper investigates how the Swedish public views carbon taxation and the social factors that shape support or resistance. It compares a nationally representative sample with a group of fuel tax protesters to explore differences in demographics, political orientation, and levels of trust in government. To capture broader trends in public acceptance, a Difference-in-Differences (DID) model is used to examine changes in willingness to pay environmental taxes in Sweden and a set of comparison countries between 2000 and 2010. The results show that, although opposition to environmental taxes increased globally during this period, the rise in Sweden was notably smaller. This suggests that Swedens early and transparent green tax reform and revenue recycling measures helped sustain public support. The study shows the importance of trust, fairness, and transparency in designing carbon tax policies that are both politically feasible and socially acceptable over time.

Low-speed, two-stroke marine diesel engines are facingmore severechallenges regarding nitrogen oxide (NOx) emission control and fueleconomy with the increasingly stringent global emission regulationsand the implementation of carbon tax policy. Based on the fixed-speedcruise operating condition data recorded in the engine log of a realship, a marine heavy fuel oil (HFO) model was innovatively establishedin this study, as well as a simulation model of the engine operationon a real ship. By comprehensively evaluating the interaction betweenscavenge air and fuel injection parameters, a multiparameter synergisticoptimization strategy was proposed to systematically reveal the mechanismof key operating parameters on the engine’s combustion performanceand emission characteristics. The results demonstrate that the lowestfuel consumption rate (SFOCmin) optimization scheme achieveda power increase of 2.34%, a fuel consumption rate reduction of 2.36%,and a CO2 emission factor reduction of 2.28%. Meanwhile,the NOXmin optimization scheme significantlycurtailed the NOX emission factor of theoriginal engine by 12.09%. This study offers a feasible implementationstrategy for promoting the development of a green and energy-efficientshipping industry.

ABSTRACT Amid growing emphasis on sustainability and customer-driven market, supply chain must balance environmental responsibility with efficiency. Present study develops a joint economic lot-sizing model integrating outsourcing, green technology investment, carbon emission regulations, and customization strategies in a two-level supply chain comprising a manufacturer and a retailer. The manufacturer produces fresh products and outsources defective repairs, while the retailer customizes part of the output to meet individual preferences. Both chain-partners invest in emission-reduction technologies to comply with carbon tax policies. Considering price-sensitive demand, the model optimizes customization cost, emission-reduction investment, selling price, and production cycle to maximize centralized profit. The novelty lies in the integrated treatment of outsourcing, carbon control, and customization under trade credit. Results suggest improving quality to reduce defectives, moderating customization, and setting optimal credit periods to enhance profitability.

Emission reduction effect and transmission mechanism of carbon tax from the perspective of embodied carbon emissions.

Carbon emissions reduction in maritime supply chain under cap-and-trade and carbon tax policies

Sustainable strategies for marine plastic waste remanufacturing systems under diverse carbon reduction policies.

This conceptual paper explores the key determinants influencing the successful implementation of a carbon tax policy in Malaysia, with a focus on institutional readiness, perceived fairness, and public trust in government. Framed by the Theory of Planned Behaviour (TPB), the study proposes a theoretical model to analyse how these factors shape carbon tax adoption and public compliance. By integrating insights from international carbon tax experiences and Malaysia’s unique socio-political context, the paper emphasises the importance of transparent revenue use, interagency coordination, and administrative capability in fostering public acceptance. The analysis highlights that while a carbon tax is critical for advancing Malaysia’s climate goals under SDG 13 (Climate Action), its viability depends on the government’s ability to communicate policy fairness, strengthen institutional credibility, and engage stakeholders effectively. The paper contributes to sustainable tax policy discussions by outlining a framework for designing a politically feasible and socially equitable carbon tax system in Malaysia.

The environmental and economic effects of differentiated carbon tax across industries under the constraint of the "dual carbon" goal: A study based on a dynamic CGE model.

Purpose As climate challenges grow and countries set increasingly ambitious climate goals, the drive to find effective policy tools to address these issues is accelerating. This research aims to describe how the carbon tax and its impacts reduce carbon emissions. Design/methodology/approach This study employs bibliometric analysis to identify research trends and a systematic literature review to offer insights into how carbon taxes, as policy measures, can help reduce carbon emissions. It sourced relevant articles from Scopus databases using a range of keywords and keyword combinations. Findings The findings of this study indicate that the carbon tax is just one of many variables that can reduce carbon emissions. Its effectiveness varies by market maturity, with reductions of 5–21% in established markets. The best results come from hybrid approaches that use both carbon taxes and emission trading systems. When combined with carbon capture, utilization and storage technologies, these approaches could lead to a 32.5% reduction by 2060. Research limitations/implications Practically, policymakers should consider the effectiveness of the carbon tax (policy) in reducing carbon emissions. The study theoretical implications include highlighting various theories for future research and sharing the mapping variables related to organizations’ carbon emission reduction. Originality/value The study adds originality and value to the existing literature by establishing a connection between carbon taxes and carbon emissions. To the best of the authors’ knowledge, this study is the first research that combines bibliometric analysis with systematic literature review to answer how carbon tax and its impacts reduce carbon emissions.

Introduction: The comparison of carbon tax regulations between Indonesia and Japan is highly relevant, considering that Japan has implemented a carbon tax policy earlier, on a larger scale, and with varying rates for different types of carbon emissions. By analyzing this comparison, Indonesia is expected to identify a more effective approach to reducing carbon emissions without hindering economic growth. Purposes of the Research: The purpose of this legal comparison is to evaluate and propose a unification of carbon tax policies in Indonesia that better align with domestic conditions and needs, by taking into account the experiences of other countries, particularly Japan. This unification aims to create a more efficient and equitable carbon tax system that can support Indonesia’s efforts in achieving its carbon emission reduction targets This unification aims to create a more efficient and equitable carbon tax system, and can support Indonesia's efforts to meet its carbon emission reduction targets. Methods of the Research: This study uses a normative method with a comparative approach. The primary legal material used is a comparison between the Indonesian legal framework and the Japanese legal framework. Comparative analysis is focused on law in the context by using a micro approach, i.e. a comparison of legal norms. Results Main Findings of the Research: This research contributes to the legal and policy discourse on carbon taxation by providing a comparative analysis between Indonesia and Japan, focusing on how regulatory design and economic instruments can balance environmental goals with industrial competitiveness. The study finds that while Japan’s carbon tax operates within a mature regulatory framework supported by strong institutional coordination and public compliance, Indonesia’s system remains at a formative stage, requiring detailed implementing regulations and clear emission accounting mechanisms. Both countries share the objective of promoting low-carbon transitions, but differ in tariff structure, policy maturity, and economic adaptability. Japan’s experience demonstrates that consistent policy enforcement and alignment with renewable energy incentives enhance effectiveness, a lesson Indonesia can adopt to balance environmental protection with sustainable economic growths.

Purpose Dry ports can enhance port–hinterland connectivity while offering environmental benefits, but their contributions vary depending on port characteristics, spatial settings and inland network locations. Additionally, tightening environmental regulations in the shipping industry may increase regional disparities in the benefits of dry ports. This study examines the impact of environmental policies and dry port operations on regional disparities in dry port benefits. Design/methodology/approach A utility-based cost model evaluates accessibility to seaports in China's Bohai region under two scenarios: (1) direct road transport and (2) intermodal road–rail transport via dry ports. The difference in generalized cost measures between the two scenarios is considered to be the benefit of dry ports for the corresponding city. Findings This study reveals that while dry ports improve overall connectivity and provide economic and environmental benefits, these benefits are unevenly distributed across the hinterlands. Factors such as proximity to dry ports, frequency of rail services and cargo time value play significant roles in influencing accessibility. Furthermore, the implementation of carbon tax policies enhances the advantages for cities with efficient dry port operations. Research limitations/implications Data reliance and uniform cost assumptions introduce biases. Future research should employ comprehensive data and assess green technologies to advance sustainable logistics at dry ports. Practical implications Policymakers can leverage these findings to guide dry port investments and design equitable environmental policies. Social implications Equitable port access fosters economic growth and sustainable development in hinterland communities. Originality/value This study advances how dry ports and environmental regulations jointly shape regional logistic benefits, offering a framework for more informed decision-making in port–hinterland planning.

Financial development, green innovation, green tax, industrialisation, and environmental performance in South Africa: The mediating role of institutions.

This study discusses the problems of implementing carbon tax as an instrument for reducing greenhouse gas emissions and promoting sustainable economy in Indonesia. The carbon tax, which is regulated in Law No. 7 of 2021 and Government Regulation No. 50 of 2022, aims to minimize carbon emissions from the electricity, transportation, and manufacturing industries. However, its implementation has significant socioeconomic impacts, including increased production costs, higher prices, and pressure on people's purchasing power, especially among the lower-middle class. A normative analysis was conducted using a statute approach, a conceptual approach, and a comparative approach by examining the practices of other countries, such as Sweden, which has successfully integrated carbon tax with fiscal incentives, and Australia, which has demonstrated the negative risks of carbon tax without social compensation. The results of the study show that the unilateral implementation of carbon taxes can threaten public welfare and economic stability, thus requiring an ideal mechanism based on the principles of sustainable economics. This mechanism includes providing fiscal incentives, developing renewable energy such as geothermal, biomass, and solar energy, and implementing transparent and effective carbon trading, including cap and trade and emission offset systems. With this strategy, carbon emissions can be reduced effectively without sacrificing economic growth and social welfare. These findings emphasize the need for inclusive, adaptive carbon tax policies that are integrated with economic incentives, clean technology, and multi-stakeholder participation as a model for sustainable environmental management.

Abstract With the growing emphasis on low-carbon agriculture and increased public awareness, controlling fertilizer use and methane emissions from farmland through low-carbon policies has become essential for promoting sustainable operations in China’s agricultural product (AP) supply chain. This paper constructs a game-theoretic model to study the dynamics of low-carbon policies and their impact on supply chain performance. The study reveals key findings: (i) Under carbon tax policies, the optimal order quantity in a centralized decision-making framework exceeds that of a decentralized framework, and carbon emission reductions by agricultural firms are higher in the centralized setting. (ii) Carbon trading does not always benefit green agricultural product planting firms. When the unit carbon trading price falls below a certain threshold, the income of both green and conventional agricultural product planting firms is inversely related to the unit carbon trading price. (iii) A revenue-sharing contract facilitates the coordinated development of the supply chain, enabling both agricultural planting firms and sellers to achieve a win–win outcome under mixed carbon policy constraints.This study enriches the body of research on low-carbon supply chain operations for agricultural products, providing a theoretical foundation for decision-making by members of the green agricultural product supply chain under low-carbon policies. Additionally, it offers countermeasures, policy recommendations, and strategies for the development and governance of green agricultural product supply chains, serving as a reference for governments to craft more effective and targeted policies.

Under mounting pressure from global climate change, carbon pricing mechanisms - particularly carbon taxes - have emerged as pivotal policy instruments for emissions reduction. As integral components of the economy, small and medium-sized enterprises (SMEs) demonstrate heightened sensitivity to carbon tax policies due to their distinctive characteristics including energy intensity, resource accessibility, and transition flexibility. Drawing on a mixed-methods approach, this study integrates quantitative and qualitative data sources to capture both macro patterns and firm-level dynamics. This study systematically examines the mechanisms and magnitude through which carbon tax policies influence the economic competitiveness of heterogeneous SMEs, while identifying critical determining factors. The analysis reveals substantial heterogeneity in the competitive impacts of carbon taxation across SME sectors. Energy-intensive manufacturing industries and resource-constrained micro-enterprises experience the most severe negative repercussions, whereas certain service-sector firms exhibit enhanced competitiveness through innovation offset effects. These findings underscore the necessity for policy frameworks that incorporate targeted technical assistance and collaborative platforms specifically designed for vulnerable enterprise groups.