Green Tax Research Articles

Simulation of Green Tax Effects on Health Indicators and Welfare in Iran: General Equilibrium Model of Economy, Energy and Environment (GEM-E3)

Simulation of Green Tax Effects on Health Indicators and Welfare in Iran: General Equilibrium Model of Economy, Energy and Environment (GEM-E3)

Resources utilization, taxation and green education: A path to sustainable power generation

This study addresses the environmental and sustainability challenges arising from coal dependency in high-income Asian economies. Employing the CUP-FM estimation technique, it investigates the complex relationships among coal consumption, sustainable power generation, and green taxation from 2000 to 2020. The findings indicate that coal usage hampers green power generation due to its carbon-intensive nature, greenhouse gas emissions, and resource diversion from green energy projects. Conversely, a higher environmental tax ratio encourages cleaner energy alternatives and supports green infrastructure. Government investment in education enhances environmental awareness, while the growing number of internet users unintentionally increases energy demand. Urbanization presents mixed effects on energy consumption and sustainability. Importing green components significantly boosts green electricity generation through advanced technology and international collaboration. To tackle these challenges, high-income Asian economies should adopt a comprehensive policy approach focusing on coal efficiency, green taxation, sustainable education, digital transformation, and smart and sustainable urban development.

Green Tax Policy Model: Towards Green Growth Environment

The objective of green tax law is to promote green growth among companies, people and communities as well as environmental preservation. The Malaysian green tax law, however, is more concerned with tax incentives than with tax penalties. Evidence showed most companies in Malaysia are not even aware of the incentive-based tax and thus, do not include them as part of their strategies for environmental sustainability. The green tax penalty has become a popular environmental policy tool for many countries, but not in Malaysia. The Malaysian system of environmental taxes should include the green tax penalty. Therefore, this study aims to identify key drivers for companies to respond to the green tax policy. The study uses institutional theory to explore the driving force of green tax acceptance within companies. Institutional pressure suggests that the three mechanisms of organisational changes are coercive, mimetic, and normative pressures. Coercive pressure stems from political influences and the legitimacy problem; mimetic pressure results from a standard response to uncertainty, and normative pressure is associated with professionalisation. The study utilises the survey questionnaire to identify opinions, experiences and behaviours towards green tax acceptance among manufacturing companies. The population of the study is manufacturing companies and the unit of analysis is managers or accountants who represent the manufacturing companies and members of the Federation of Malaysian Manufacturer (FMM). The outcomes from the study confirmed the institutional theory to support the green tax reform acceptance for companies in Malaysia. The study also develops a green tax model that the government can take into account when enacting green tax reform so that companies can cooperate with Malaysia's green tax law. The study contributes to institutional theory by conceptualising the key drivers of green tax laws among Malaysian companies. The conceptualisation is used to formulate a structural model that explains the key drivers of green tax laws, and the structural model is tested against empirical data. A better understanding of factors influencing green tax policy acceptance is relevant to the government to strengthen the green growth environment and enhance awareness to create a shared responsibility among Malaysian companies.

Fiscal regulation policy and financial incentives impact on the environmental management

Effective environmental management is a key element of a country’s sustainable social and economic development. This requires comprehensive environmental protection measures and stimulating the use of environmentally friendly technologies and innovations aimed at preserving the environment. One of the ways to achieve these goals is to apply environmental taxes. Environmental taxes are powerful tools for achieving environmental goals and ensuring sustainable development. The article analyzes the implementation and practice of applying environmental taxation. It is revealed that Ukraine had significantly higher greenhouse gas emissions per unit of energy produced in 2012–2021. It was established that emissions of pollutants from mobile sources make up 40% of the total emissions of pollutants into the atmosphere. Pollutant emissions from road transport make up 91% of pollutants emitted by mobile sources. The study examines the possibilities of stimulating emission reductions through an environmental tax in Ukraine and offers to improve the system of financing environmental measures, including through environmental taxation. International practice shows that countries that successfully implement environmental taxes and green taxation instruments are able to achieve more effective results in reducing pollution and rationalizing the use of resources. The right combination of environmental taxes with other instruments, such as regulatory standards and financial incentives, can significantly improve the environmental situation and ensure sustainable economic growth.

AN ANALYSIS OF GREEN TAXATION AND ITS EFFECT ON ECONOMIC GROWTH

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.

Can environmental tax improve the environmental investment? Evidence from a quasi-natural experiment in China.

The implementation of the Environmental Tax Law is a milestone in promoting China's green tax reform. However, the existence literature has lacked attention to whether it leads enterprises to invest in green environmental protection. To examine the Environmental Tax Law effects and mechanism on the environmental investment of heavy-polluted enterprises, this study used the data of heavy-polluted enterprises listed on the A-share market from 2012 to 2020 and regarded the Environmental Tax Law as a quasi-natural experiment to employ a difference-in-differences model. We found that environmental tax improves the green environmental investment of heavy-polluted enterprises, reflecting the guiding role of policy on enterprise investment allocation. Heterogeneity was found, and the promotion effect of environmental tax reform on enterprise environmental investment is more significant in non-nation-owned, central-western regions, and small-scale enterprises. Further analysis believed that market competition, as an external mechanism, helps strengthen environmental tax reform's implementation effect. The findings of this paper provide a new proof for a comprehensive understanding of the micro-effect of environmental tax reform and provide a reference for the implementation of green development strategies.

Mechanism and Empirical Evidence of Green Taxation Influencing Carbon Emissions in China’s Yangtze River Economic Belt

Based on the panel data of 100 cities in China’s Yangtze River Economic Belt from 2010 to 2020 and the extended STIRPAT model, this paper uses SYS-GMM to empirically study the impact of green taxation on carbon emissions in the Yangtze River Economic Belt. Then, it explores the effect path of green taxation on regional carbon emissions using the intermediary effect model and analyzes the threshold characteristics of the influence of urban greening level on the regional carbon emissions of green taxation using the threshold effect model. The results show that, (1) from 2010 to 2020, the carbon emissions in China’s Yangtze River Economic Belt showed a slow rising trend, and carbon emissions in the lower reaches were significantly higher than those in the middle and upper reaches. (2) Green taxation can significantly suppress carbon emissions in the Yangtze River Economic Belt. However, green taxation has the weakest inhibitory effect on carbon emissions in the upstream region and is slightly stronger in the middle reaches, with the strongest inhibitory effect on carbon emission in the downstream region. (3) From the perspective of the action path, the level of green technology innovation has a significant partial mediating effect. Green taxation mainly realizes carbon emission reductions by improving the level of urban green technology innovation, and its intermediary effect accounts for 17.6% of the total effect of green taxation on regional carbon emissions and 15.6% of the total effect of green taxation on per capita carbon emission intensity. (4) Further research shows that the emission reduction effect of green taxation is also influenced by the level of urban greening, showing a single threshold effect. Before reaching the threshold value, the inhibition effect of green taxation on carbon emission levels is relatively strong, and after crossing the threshold value, the inhibition effect is weakened.

Emerging Trends of Green Finance in India:Challenges and Opportunities

This study shows the recent trend and future opportunities in green finance in the emerging India. A group of pioneering cities have demonstrated that energy efficiency conserves natural resources, strengthens resilience to meteorological disruptions, and leads to substantial savings in fossil fuel. Co-operations across the governments at various levels are most important. The national government can support the cities by increasing the funding which suites the energy saving and also locally administrated. The different mandates, expertise, and the multijurisdictional fluidity of most environmental problems, collaboration amongst neighboring municipalities, regions, and the national government, is of paramount importance. By suggesting new policies to the local authorities for the issuance of emission permits and/or for monitoring, reporting and verification of emissions. Perhaps the most common obstacle to the growth of the “green city”, especially during the current economic crisis, is the lack of funding for environmentally friendly infrastructure. Urban climate change policies will have consequences for city’s budgets for which new solutions are required. The sustainable local development can be made through the Green taxes so that more incentives can be provided and also to perform the existing program in an innovative manner. The government can be fiscally sound and innovative programmes and also environmentally good the in the practice of purchasing the green procurement. But also the climatic source of energy plays a vital role. In that water plays a major role because many cities around the world are already facing the importance of water stresses due to large amount of demands. So this paper implicates the valuable suggestions to meet the above all mentioned crises pertaining in our country.

Policy Framework of Green Taxation on Motor Vehicles: A Comparative Perspective

Green economics is structured to reward more innovative, environmentally sustainable, and low-carbon resource use while imposing taxes on the emission of pollutants that adversely impact the environment and public health. The concept of green taxation is still being tested in many nation-states. Pollution is worst in India, and the country is ranking low on several environmental performance indices. Vehicle exhausts are one of the key pollutants. In 2021, the Indian government released draft guidelines for imposing Green Tax on older motor vehicles. India submitted its first Nationally Determined Contribution Report to the United Nations Framework Convention on Climate Change in 2022. India prioritized green taxonomies, low-carbon transportation systems, and Bharat Stage-VI emission standards and offered incentives and tax breaks to encourage the production and use of higher ethanol-compatible vehicles. There is still a lack of awareness among the masses, as well as academic discussions and literature on the subject. Against this backdrop, the researchers intend to explore the legal and economic actions undertaken by the Indian Government to intercept vehicular air pollution. An effort will also be made to draw a comparative study with the fiscal policy measures and other steps taken by the Italian government to tax polluting vehicles.
 Keywords: Green Taxation, Vehicular Pollution, Economic Incentives, Environmental Protection, Sustainable Development

ПРАВОВІ АСПЕКТИ ВИКОРИСТАННЯ ЕКОЛОГІЧНОГО ПОДАТКУ ДЛЯ ВПЛИВУ НА ЕКОЛОГІЗАЦІЮ ГОСПОДАРСЬКОЇ ДІЯЛЬНОСТІ

The article is devoted to the research of the environmental tax as an indirect method of state influence on the activities of economic entities in order to achieve the environmental goals of sustainable development. It is proven that although the Economic Code of Ukraine does not directly provide for environmental policy as a component of state economic policy, the latter must be determined and conducted taking into account the environmental component. It is noted that the legal economic order includes the need for compliance with environmental norms by subjects of economic activity. One of the appropriate indirect methods of state influence for the implementation of sustainable development tasks is an environmental tax. It has two main functions – fiscal and nature protection. It is expedient to ensure a balance between these two functions, which can be achieved only within the framework of the proper economic policy of the state. In modern conditions in Ukraine, the fiscal function of the environmental tax prevails, because the money received from the collection of this tax is directed to other purposes. It is necessary to make changes to the Budget Code of Ukraine, which will establish the purpose of the funds received from the collection of this type of tax exclusively for ecological (nature protection) purposes. In the European Union, environmental or green taxes, which include taxes on energy, transport, pollution and resources, are one of the appropriate methods of influencing the behavior of economic entities to stimulate their fastest transition to a sustainable economy. Proper implementation of the nature protection function by the state within the framework of tax policy can have not only a stimulating nature, but also a restrictive and preventive one. This makes it possible to prevent or significantly reduce the negative impact of economic activity on the natural environment, and not to overcome the consequences of such negative impact. In the European Union, the carbon border adjustment mechanism СВАМ (Carbon Border Adjustment Mechanism) is being introduced, which makes it necessary for Ukraine to stimulate domestic economic entities to significantly reduce the level of CO2 emissions, because otherwise they may lose access to the markets of the European Union from 2025. The tax policy of Ukraine to increase environmental tax rates for environmental pollution is expedient. It is recognized as necessary to raise the level of environmental taxes to the level of rates of similar taxes in the member states of the European Union. One of the expedient economic methods of reducing the transaction costs of an economic entity for the introduction of “green” technologies and equipment is the use of accelerated depreciation of fixed assets for environmental protection purposes, which allows faster (compared to traditional depreciation methods) write-off of the cost of equipment used for environmental goals.

The impact of green tax and energy efficiency on sustainability: Evidence from Bangladesh

This study examines the impact of green tax and energy efficiency on sustainability in the context of Bangladeshi manufacturing companies. Three hundred eighty three responses were collected from manufacturing companies in Bangladesh, and partial least squares structural equation modeling (PLS-SEM) was used to analyze the data. The results show that green tax significantly positively affects environmental and social sustainability but not economic sustainability. Energy efficiency has a positive impact on all three dimensions of sustainability. Furthermore, energy efficiency mediates the relationship between green tax and economic, environmental, and social sustainability. The findings suggest that energy efficiency should be promoted as an effective means of achieving sustainability in manufacturing companies and that green tax policies can be enhanced by incorporating energy efficiency measures. This research contributes to the existing literature on sustainability by highlighting the importance of energy efficiency as a mediator between green tax and sustainability. The study’s practical implications are discussed in relation to the Bangladeshi manufacturing industry, and suggestions are made for policymakers and company managers. The originality of this study lies in its focus on a developing country context and its examination of the mediating role of energy efficiency in the relationship between green tax and sustainability.

The impact of green taxation on green low-carbon development in Yangtze River Delta region of China-based on mediating effect model and spatial Durbin model.

Promoting green low-carbon development is an important task in the construction of ecological civilization of China. The leadership has proclaimed green low-carbon development as the top national priority for development. Green low-carbon economy has become the high point of global industrial competition. Green taxation, as a tool for environmental regulation, plays an important role in the construction of ecological civilization. Therefore, this paper investigates the impact of green taxation on green low-carbon development in the Yangtze River Delta (YRD) region of China, using data of 41 cities from 2011 to 2021 in the YRD region. We construct a green low-carbon development index with the combined weight CRITIC-entropy method, and employ a mediating effect model and a spatial Durbin model based on double fixed effects in this study, which intends to provide a theoretical basis for the establishment of a sound tax policy system that is conducive to the green low-carbon development. The results show that (1) there is an evident spatial dependence of green low-carbon development in the YRD region; (2) green taxation has a significant positive effect on green low-carbon development through rationalization of industrial structure and advance of industrial structure; and (3) the positive impact of green taxation on green low-carbon development in the region is characterized by spatial spillover and heterogeneity. Specifically, green taxation significantly promotes green low-carbon development in the core area, but such green taxation dividend has yet to be realized in the expansion area.

Adoption of Green, Carbon and Environmental Taxation in Nigeria: Revenue Generation and Economic Benefits Perspectives

Tax revenue is one of the essential means through which the government controls the macroeconomy and plays a vital role in promoting environmental protection and sustainable development. This paper explores the adoption of green, carbon and environmental taxation in Nigeria: revenue generation and economic benefits perspectives. There is an uncertainty about the public acceptance of these taxes and subsequent difficulty in predicting the rate at which the pollution will fall if environmental taxes are implemented, it becomes expensive for governments to pursue environmental targets and thereby makes it difficult for firms and households to plan investment, production, and consumption activities. Regardless of this, it can be seen that environmental taxes are slowly gaining momentum in Nigeria. The main challenge is to design policy objectives and their instruments in such a way that the social costs of any inefficiency are minimized and a fair distribution of the burden are ensured. It is pointed out that Nigeria should introduce and develop the scope of taxation and adopt the method of "green tax" to cultivate taxpayers' green awareness. Thus, the policy framework needs to be systematically analysed for the successful design and implementation of environmental taxes. In conclusion, what can be said is that though the system of environmental taxation has turned quite a few heads in the direction of sustainable development in Nigeria, it is high time that a system of Green Tax is popularized in order to keep up with the global standards of environment protection.

Kewenangan Pemerintah Pusat dan Daerah dalam Kerangka Green Tax Reform

This research is aimed at examining the dynamics of the authority of the Central Government and Regional Governments as well as examining the expansion of authority that can be granted within the framework of green tax reform. This research uses juridical legal research methods with historical, conceptual, statutory, and comparative approaches. The results of the study concluded that the 3 (three) green tax reforms that have been implemented in Indonesia have strengthened several authorities, however, there are degraded authorities such as the authority to impose sanctions, resolve administrative disputes and budget authority. The authority of the central government and regional governments needs to be expanded and strengthened in the next green tax reform, specifically in the form of the authority to add potential types of environmental taxes in the regions, the authority for green budgeting, tax incentives/fiscal convenience, and the reorganization of the authority to grant administrative sanctions and resolve disputes administratively.

Unveiling the environmental efficiency puzzle: Insights from global green innovations

The latest surge of global uncertainty and disruptions in global supply networks put policymakers under pressure to emprise green innovations as a vital tool to address environmental concerns. However, producing green innovations doesn't always help in achieving environment-related sustainable development goals. Therefore, in this study, we endeavour to investigate to what extent green innovations are efficient in improving environmental efficiency. To this end, a network bias-corrected data envelopment analysis and clustering analysis is applied. The data used in this study covers 42 countries from different regions, spanning from 2000 to 2020. The results reveal that most countries have not made major advancements in environmental efficiency signifying the low level of green innovations utilization to achieve environment-related sustainable development goals (SDGs). Additionally, the results demonstrate a U efficiency curve for inputs-oriented green innovations efficiency over time, indicating that the initial stages of green innovations production are associated with a decreased return. However, over time, the efficiency exhibits an upward trend. The benchmarking analysis reveals that South American and European Union nations set the bar for other countries in terms of efficiently leveraging green innovations to achieve SDGs. Our findings also suggest that environmental efficiency is more dependent on green-supporting policies such as green energy production and green taxes. As a result, we conclude that achieving environmental SDGs while utilizing green innovations does not always result in the development of other SDGs. Therefore, policymakers need to prioritize pursuing a green developmental approach and supporting policies to achieve environment-related SDGs and other SDGs.

Green taxes in Colombia and the social investment law

Introducción: El desarrollo económico de la humanidad ha traído consigo un problema de orden mundial, la contaminación; conduciendo a los gobiernos a hablar hoy de daños ambientales y recuperación del medio ambiente. El Estado colombiano se ha sumado a los países que pretenden mitigar el efecto de los GEI, para ello ha implementado a través de la Ley 1819 de 2016 los impuestos verdes. Objetivo: Esta investigación pretende establecer la relación entre el recaudo por impuesto verdes y la aplicación de políticas ambientales. Metodología: el diseño de la investigación se trazó: tipo descriptiva; de diseño no experimental, tipo de estudio cualitativo. Para ello se recurrió recopilación bibliográfica de autores y al análisis de la información para la consecución del objetivo. Resultados: los resultados esperados es determinar qué la relación existente entre las políticas ambientales y el recaudo por los impuestos verdes son inversas: Las políticas ambientales son la ruta para conducir a la disminución de la contaminación. Conclusiones: Los impuestos verdes en Colombia dan muestras de la conciencia del consumidor en que hay que pagar por contaminar; sin embargo, estos impuestos tiene fines recaudatorios; y no van en relación con las políticas de prevención

Achieving sustainable growth in emerging economies: Insights from advance method moment of quantile regression

Given the escalating climate change, economies are concerned for the attainment of sustainable economic improvements. Hence, abiding by the objective of sustainability while stressing the conception that increasing financial progress should not subside the country's environmental advancements, the current study examines the asymmetric effect of Environmental taxes, financial globalization, and external debts on the financial and green growth of emerging economies. In doing so, the study utilized the novel estimation of the Method-of-Moment Quantile Regression (MMQR) to identify the presence of asymmetric association among the studied variables. The empirical findings reported that environmental taxes play a critical role in advancing green growth in emerging economies. As for external debt, the outcome reveals that an increase in external debts decreases the level of green growth suggesting the inefficiency of emerging nations in utilizing external debts for the betterment of countries’ sustainable growth. For financial globalization, the study reported the asymmetric relationship. At a higher level of green growth, financial development tends to improve green development but decreases green growth in lower quantiles. Similarly, the results demonstrate that an increase in external debt increases financial development at lower quantiles but decreases financial advancements at higher quantiles. Likewise, financial globalization helps to improve the conditional quantiles of financial development for selected emerging countries. As for environmental taxes, the findings revealed a negative relationship of the variable with financial development in lower quantiles but positive in middle to high quantiles. Observing the highly asymmetric associations between the studied variables, the current study calls for the need for efficient fiscal policies for directing the positives of external debt and financial globalization from financial development to green growth with proper allocation of green taxation while facilitating green financial efforts such as eco-investments, renewables projects, green innovations with higher stringency in green policies.

Environmentally friendly tax measures in the Portuguese jurisdiction. Enforcement of the polluter pays tax principle

PurposeThis paper aims to understand what green tax measures Portuguese corporate tax law foresees and whether the measures observe the polluter pays tax principle.Design/methodology/approachThe legal research method is applied to achieve the goals. Specifically, the research analyzes the most relevant corporate tax legislation to identify legal provisions influencing taxpayers’ behavior in sustainability decisions, particularly corporate income tax (CIT) and value-added tax (VAT) laws.FindingsThe results show that the Portuguese Green Taxation Law introduces several environmentally friendly taxation measures by benefiting or increasing the tax burden. The influence on the CIT law results from instruments such as the autonomous taxation of expenses, depreciation, provisions and the local corporate tax. In the VAT, electric tourism vehicles’ VAT deduction is possible. These measures enforce the polluter pays tax principle, increasing the tax burden on less environmentally friendly options and decreasing the tax burden on more green economic choices. These measures directly influence the companies’ choice because of the increase or decrease tax burden according to more or less polluting choices.Research limitations/implicationsThis study only studies the Portugal case.Originality/valueThis study highlights the Portuguese experience reconciling taxation and environmental dimensions.

Nexus among green finance, technological innovation, green fiscal policy and CO2 emissions: A conditional process analysis

Compared to advanced economies, China is facing challenges in reducing CO2 emissions due to its lower income-level and unbalanced energy structure. It is important to build a long-term mechanism for financing sustainable industries and reducing CO2 emissions. Green finance and green fiscal policy are essential instruments for financing the long-term mechanism of a green economy. They are tightly related with technological innovation, which contributes to the reduction of CO2 emissions. Clarifying the nexus among green finance, green fiscal policy, technological innovation, and carbon dioxide emissions (CO2) is paramount for new policy design and climate change mitigation. As a result, we collect panel data from 30 provinces and municipalities in mainland China (excluding Tibet) from 2007 to 2020 to investigate the effects of green finance on CO2 emissions using mediation and conditional process models to determine further the roles of technological innovation and green fiscal policy. The study results indicated that CO2 emissions can be suppressed directly by green finance and indirectly through technological innovation. Moreover, when green fiscal policy rises to a higher level, the indirect effect of green finance increases significantly. The green tax, a crucial element of green fiscal policy, presents the possibility of a “green paradox.” Therefore, we further test the effects of green finance and technological innovation in terms of environmental quality through threshold effect models. Green finance can better facilitate technological innovation and then inhibit CO2 emissions when environmental quality is high. Based on the empirical findings, developing green finance and green fiscal policies could be continued by expanding pilots, adjusting tax rates, and broadening taxation scope.

Promoting sustainable fossil fuels resources in BRICS countries: Evaluating green policies and driving renewable energy development

The central purpose of this paper is to evaluate the impacts of green monetary and fiscal policies on the sustainable development of fossil fuels resources in BRICS countries, through the analysis of data spanning from 1995 to 2021 and the ARDL- PMG technique. The research results confirm that green monetary policies have a greater impact on the development of clean energy compared to green fiscal policies. Additionally, the economic freedom index, green parts trade, and innovation index are components that exhibit positive effects on the development of renewable energy consumption in BRICS countries. However, the research findings also indicate an adverse effect of information and communication technology development on the greening of natural resources in BRICS countries. Based on the findings, the paper proposes several recommendations, which include reforming the green tax system, developing green financing markets, and establishing a local green fund to promote local green power generation projects.