Impact Of Tax Research Articles

Financial Viability of Thermal Power Generation Plants in the Transition to Renewable Energy

The energy transition will occur due to the natural decline in profitability of thermal power generation assets, and their place in the energy matrix will be taken over by renewable energies. Ensuring electric supply security, a cornerstone of the energy trilemma, is a priority for both developed and developing countries. Nations heavily reliant on hydrological resources employ thermal energy as a backup, making the exploration of financial feasibility for such projects pertinent. This study introduces an economic valuation model for a dispatchable thermal power generation plant in the Colombian market. Associated uncertainty is assessed based on revenue from market sales, bilateral contracts, and firm power remuneration – elements constituting the cash flow and converging into profitability and risk analysis. These are calculated through the Monte Carlo simulation methodology. Additionally, a sensitivity analysis is conducted, accounting for variables such as the "Reliability Payment" settlement price, capacity factor, and costs linked to coal supply. The results emphasize the need for firm power remuneration as a crucial incentive for the success of such projects. Furthermore, the criticality of dispatch level in relation to profitability is verified. Finally, the impact of coal taxes and supply negotiations on financial feasibility is assessed.

The Pink Tax in Consumer Behavior for Personal Care Products

Pricing significantly influences consumer decisions, with variations often observed for similar products due to purchase timing, market segments, and Gender. This phenomenon, known as price discrimination, can raise ethical concerns, especially when it exacerbates inequalities. A notable example is the "pink tax," where products marketed towards women are priced higher. Despite legislative efforts like California's Gender Tax Repeal Act and similar measures in New York, gender-based pricing disparities persist, particularly in personal care products. This study explores consumer perceptions of pricing fairness in personal care products and the impact of the pink tax on purchasing decisions. The research employs a mixed-methods approach, combining surveys to gather quantitative data and semi-structured interviews for qualitative insights. The surveys measure public awareness and attitudes towards the pink tax, while in-depth interviews with women who frequently purchase personal care products provide an understanding of their experiences. The results are expected to reveal that consumers generally perceive the pink tax as unfair and exploitative, influencing their purchasing behaviour and attitudes towards gender-neutral products. This study will contribute to understanding gender-based pricing and its effects on consumer behaviour in Indonesia, offering insights for promoting fairer pricing practices.

The Impact of Corporate Tax on Investment

According to the experience of developed countries in the world, improving the corporate tax system is important in ensuring the stability of the economy, increasing business and investment activity. The work is devoted to one of the most topical issues of today, which discusses the impact of income tax on investment attraction. This work is aimed at ensuring the compatibility of income tax and investment, and taxes are aimed at pursuing a prudent tax policy as a regulator of the economy. Proposals and recommendations have been developed to stimulate investment activity through income tax benefits, to ensure high efficiency of income tax and investment policy.

Assessing the impact of taxation on the effective tax rate and operational risk of capital investment projects under optimal capital structures

This paper proposes two metrics to correctly measure under optimal capital structures the impact of corporate statutory tax rates (a) on the effective tax rate, and (b) on the operational risk of capital investment projects and their parent firm's project portfolio. For illustrative and explanatory purposes as well as for ensuring a realistic coverage of a wide spectrum of risky capital investment projects, both metrics are applied to a stationary in mean and variance stochastic NPVτ model under the Canadian open-class corporate taxation system. The Marshallian partial equilibrium adjustment mechanism is brought into play to ensure through efficient financial markets that firms operating within any domestic economic sector are concomitantly subjected to financial equilibrium conditions, thereby enabling firms to converge in the very short run to an optimal after-tax leveraged net cost of capital. This paper concludes that current macroeconomic neo-classical rate-based marginal effective tax rate (METR) metrics systematically and significantly underestimate business organizations' microeconomic NPVτ-based corporate effective tax rates. Furthermore, increasing both the corporate statutory tax rate and the cross-correlation coefficient between portfolio projects will markedly increase a parent firm's project portfolio operational risk while impeding its capacity to reduce it.

Impact of Goods and Service Tax on Common Man

A system of indirect taxes called the Goods and Services Tax is imposed on the consumptionof products and services. It has established a dual system that the central and the states wouldimplement simultaneously. This study's main goal is to bring India's tax structure closer to uniformity byimplementing the GST. GST stands for One Nation, One Tax, One Market. It tries to examine how theGoods and Services Tax affects the average person. This research discovered that additional awarenesscampaigns and commercials may be supported to help the average person understand the GSTproposal.

Simulating the impact of a carbon tax on food in four European countries

Abstract Since agriculture is responsible for a considerable share of anthropogenic greenhouse gas emissions (GHGE), this paper examines the impact of various carbon taxes designed to incentivize environmentally friendly food consumption patterns in four European countries: Finland, Italy, Sweden, and the United Kingdom. As the proposed fiscal policies are likely to affect food consumption patterns, the study also assesses the consequent changes in diet quality and welfare. The results from this analysis reveal considerable variations in the reduction of GHGE across countries and tax schemes. While most taxation schemes have only a modest impact on dietary quality, these effects differ among nations. Additionally, the welfare cost of the compensated scheme is relatively small but not insignificant. These findings raise questions about the efficacy of a common European fiscal policy for climate mitigation compared to a more flexible approach where each member state calibrates the tax according to its unique circumstances.

Impact of green finance and environmental tax on sustainable development: Evidence from Vietnam

Impact of green finance and environmental tax on sustainable development: Evidence from Vietnam

An evolutionary dynamical analysis of low-carbon technology diffusion among enterprises in the complex network

The diffusion of low-carbon technologies (LCTs) is a critical channel to mitigate carbon emissions. The government plays an important role in guiding the proliferation of LCTs among enterprises, but due to issues such as regulatory costs, unequal resource distribution, and inefficient regulation it is inevitable that there will be inadequate supervision. Therefore, this study incorporates the government’s probabilistic regulation into the research framework and constructs a networked evolutionary game model in which the government, enterprises, and consumers play a role together. Based on the constructed game model, we explore the impact of carbon taxes, subsidies, probabilistic government supervision, market demand, initial fixed investment cost, network size, and firm heterogeneity on the diffusion of LCTs. In addition, we extend the model to consider scenarios involving dynamic market demands and government policies The results demonstrate that factors such as subsidies, probabilistic government supervision, market demand, network size, and firm heterogeneity promote the diffusion of LCTs, while carbon taxes and initial fixed investment cost under a small total demand inhibit the spread of LCTs. Our exploration sheds some light on the diffusion of LCTs from the perspective of demand and supply sides, which provides an effective reference for the formulation of relevant policies.

The Impact of Environmental Protection Tax on Green Innovation of Heavily Polluting Enterprises in China: A Mediating Role Based on ESG Performance

The Impact of Environmental Protection Tax on Green Innovation of Heavily Polluting Enterprises in China: A Mediating Role Based on ESG Performance

The “Pink Tax” and Gender Price Disparity in Personal Care

The “Pink Tax” refers to charging higher prices for products and services marketed primarily to women compared to similar or identical items targeted at men, despite comparable production costs. This research uses Unilever as a case study to focus on the impact of the Pink Tax on women’s purchasing power, particularly within the personal care industry. The study provides a comprehensive overview of the Pink Tax’s evolution, key research findings, public responses, and regulatory measures to address this issue. By synthesising existing research and case studies, this paper highlights the economic burden imposed on women and the reinforcement of gender stereotypes through market practices. The study underscores the need for equitable pricing mechanisms and informed consumer advocacy to rectify the economic disparities exacerbated by the Pink Tax.

Exploring the impact of renewable energy, green taxes and trade openness on carbon neutrality: New insights from BRICS countries

The world faces two significant challenges: promoting sustainable economic growth and reaching carbon neutrality. In BRICS countries, these challenges are shaped by renewable energy, green taxes, and trade openness. These countries were selected for their strategic location and the abundance of relevant data collected over the period of 1990–2021, providing a distinctive window into the energy and economic dynamics of the area. The link between renewable energy consumption, green taxes, trade openness, and natural resources and their effects on carbon emissions in BRICS countries is examined in this study using the Fully Modified Ordinary Least Square Method (FMOLS) estimator and the Drisc Kraay estimator for the robustness test. The findings indicate that using renewable energy and green taxes primarily contribute to reducing emissions, particularly at higher emissions levels. The study reveals that various factors, namely financial globalization, trade openness, efficient resource management, and population growth, substantially impact carbon neutrality. Population growth positively impacts carbon neutrality, while using renewable energy sources mitigates it. Furthermore, the empirical findings show a statistically significant positive association between financial globalization, efficient resource management, and carbon neutrality in BRICS nations. Therefore, it is necessary to implement an integrated ecological governance strategy to control and direct financial resources towards sustainable development and green energy.

Role of energy natural resource productivity and environmental taxation in controlling environmental pollution: Policy‐based analysis for regions

The present study explores the impact of energy natural resource productivity and environmental tax on environmental sustainability in six major CO2‐emitting economies: the Euro Area, China, South Korea, Japan, the United Kingdom and the United States, from 1997 to 2019. This analysis aims to reveal novel findings and implications for different energy natural resource productivity types and environmental regulations. We employed data regarding leading national and regional CO2 emitters from 1997 to 2020 to conduct an empirical analysis using the panel non‐linear auto‐regressive distributed lag (NARDL) and panel quantile ARDL (QARDL) methods. The results show that energy natural resource productivity and environmental tax are crucial components in reducing CO2 emissions by controlling for innovation technology and renewable energy consumption. The main findings demonstrate that the impact is stronger in the presence of increased energy natural resource productivity and vice versa. These findings have novel implications for sustainable development and carbon neutrality.

Impacts of state tax and resource ownership policies on extraction: Evidence from U.S. natural gas production

We analyze the impact of different state tax structures and resource ownership policies on natural and shale gas production. Using state-level, quarterly data from seven of the largest shale gas-producing states from 2007 to 2020, we find evidence that both the type of taxation method and the presence of a forced pooling law impact natural gas production. Using random effects models, we find that impact fees do not significantly affect either natural gas or shale gas production relative to severance taxes. Conversely, we find that in states with volume-based tax rates, quarterly natural gas production increases by 2.5 % relative to those states with revenue-based tax rates. We also find that the existence of a forced pooling law decreases quarterly natural gas production with an estimated decline of between 2.6 % to 3.8 % relative to states where no forced pooling law exists. These findings show that the restrictions imposed by forced pooling laws have larger impacts on production compared with different severance tax structures.

Analysis of Tax Impact on Employee Retention in the Hospitality Industry

This qualitative research investigates the intricate relationship between taxation policies and employee retention within the hospitality industry. Employing a systematic literature review, the study examines the impact of tax incentives and management strategies on employee satisfaction and organizational practices. Through rigorous data collection and thematic analysis, key findings emerge, revealing the nuanced dynamics at play. The research underscores the significance of tax incentives in fostering employee loyalty and commitment, albeit contingent upon organizational culture, industry-specific factors, and perceived fairness. Additionally, it highlights the challenges posed by compliance costs and the ethical dilemmas associated with aggressive tax planning. The study contributes to a deeper understanding of the complex interplay between taxation policies, organizational responses, and employee outcomes, offering insights for both academia and industry practitioners.

The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria

The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria

Does the environmental tax affect the within-firm pay gap? Evidence from China

The impact of the environmental tax on internal income distribution within firms is a crucial extension for evaluating the economic effects of environmental regulation policies. However, the existing literature focuses primarily on environmental effects and the Porter hypothesis, giving little attention to this topic. Using data from Chinese A-share listed companies from 2018 to 2021, we examine how the Chinese environmental protection tax affects intrafirm wage disparities. Our findings indicate that the environmental tax widens the pay gap between managerial and ordinary employees. Mechanism tests show that the environmental tax's governance effect raises managerial compensation levels, whereas cost effects decrease wages for ordinary employees. This effect is particularly pronounced in nonstate-owned firms, competitive industries, and regions with stricter environmental tax collection standards. This study makes an empirical contribution to our understanding of the effects of the environmental tax on income distribution in practice.

The impact of tobacco tax increases on cost-minimising behaviours and subsequent smoking cessation in Australia: an analysis of the International Tobacco Control Policy Evaluation Project

ObjectiveWe examined the relationship in Australia from 2007 to 2020 between tobacco tax increases and use of cost-minimising behaviours (CMBs) when purchasing tobacco and: (1) tobacco expenditure and (2) smoking...

Do Tax Deferred Accounts Improve Lifecycle Savings? Experimental Evidence

Abstract In an individual decision-making experiment, we investigate the impact of Tax Deferred Accounts (TDAs). We design six treatments to study various channels through which TDAs may affect decisions. Across both student and Mturk samples, we consistently find that TDAs significantly increase retirement wealth compared to environments with only one non-tax advantaged, liquid saving account. This increase is primarily explained by the requirement of making retirement savings decisions precede consumption decisions. Educating participants by providing a tax calculator has minimal effects. Our results highlight the effectiveness of TDAs in enhancing retirement preparedness and the significance of the order of consumption/savings decisions.

Does Income Tax Competition Remain Relevant In Attracting FDI? The Case of ASEAN Countries

This study evaluates the impact of corporate income tax on foreign direct investment (FDI) in 6 Southeast Asian countries from 1999 to 2022, under the context of the preparation for the Global minimum tax application in many countries in and outside the region. Using classical panel data models (Fixed Effects and Random Effects model), the findings show no significant impact of corporate income tax on FDI inflows to ASEAN nations. Observing the effects of other factors on foreign investments, the study discovers the significant role of infrastructure in attracting FDI for the entire sample. Additionally, we find significant positive impacts of trade openness and significant negative impacts of political stability on FDI inflows for the developing nations in the area. Interestingly, we find positive relationships between economic shocks and FDI and the region's quick recovery of foreign investment flows. Based on the results, we provide several valuable academic and policy suggestions.

Carbon tax for energy-intensive enterprises: A study on carbon emission reduction strategies

With the implementation of the carbon tax policy, the carbon emission reduction (CER) actions taken by leading enterprises in energy-intensive industries will significantly influence the CER decisions of their following firms. To delve into the boundary conditions of leading and following enterprises’ CER strategies, this paper constructs three tailored CER decision-making game models, specifically targeting leading and following enterprises in these industries. These models are designed to compare and analyze the impact of carbon tax on various CER decision modes. The study mainly derives: (1) Carbon tax is not always conducive to boosting the carbon reduction efforts of both corporations. Only when the carbon tax is smaller than a certain threshold will the carbon abatement efforts of leading and following corporations be proportional to the tax. Moreover, only when the lead firm abates its carbon emission does it contribute to the degree of carbon abatement effort. (2) The overall profitability of the supply chain (SC) is optimized when only the lead company reduces its carbon emissions. In this scenario, not only does the lead corporation’s carbon reduction efforts increase, but the lead corporation and the followers also realize a win–win profit. (3) The model with the highest carbon abatement effort is not necessarily conducive to the environment. When the unit product carbon abatement emissions of the two corporations are within a certain threshold interval, the ambient impact of carbon abatement by only the leading firm is greater than that of no abatement by both corporations. The effect on the environment is minimized when both corporations make CER.