TAX POLICY FOR SUSTAINABLE DEVELOPMENT: RECONCILING ENVIRONMENTAL EFFECTIVENESS AND SOCIAL EQUITY
Abstract
The article examines the role of tax policy in achieving sustainable development goals with particular attention to ensuring consistency between environmental effectiveness and social equity. The aim of the study is to provide a comprehensive analysis of tax policy instruments within the framework of sustainable development. The results indicate that achieving sustainable development requires a coordinated approach to tax policy that combines environmental taxation, targeted redistribution, and effective social support measures. The study has scientific novelty and practical significance, as it applies different research methods to evaluate the interaction between environmental and social objectives in tax policy.
References
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Mehta, D., & Prajapati, P. (2024). Asymmetric effect of environment tax and spending on CO2 emissions of European Union. Environmental Science and Pollution Research, no. 31, pp. 27416–27431. DOI: https://doi.org/10.1007/s11356-024-32990-y
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Ullah, S., Luo, R., & Adebayo, T. S. (2023). Dynamics between environmental taxes and ecological sustainability: Evidence from top-seven green economies by novel quantile approaches. Sustainable Development, no. 31, pp. 825–839. DOI: https://doi.org/10.1002/sd.2423
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Zhu, N., Zhou, Y., Zhang, S., & Yan, J. (2023). Tax incentives and environmental, social, and governance performance: empirical evidence from China. Environmental Science and Pollution Research, no. 30, pp. 54899–54913. DOI: https://doi.org/10.1007/s11356-023-26112-3
Ameer W., Sibt e Ali M., Farooq F., Ayub B., Waqas M. Renewable energy electricity, environmental taxes, and sustainable development: empirical evidence from E7 economies. Environmental Science and Pollution Research. 2024. Vol. 31. P. 46178–46193. DOI: https://doi.org/10.1007/s11356-023-26930-5
Dahmani M. Environmental quality and sustainability: exploring the role of environmental taxes, environment‑related technologies, and R&D expenditure. Environmental Economics and Policy Studies. 2024. Vol. 26. P. 449–477. DOI: https://doi.org/10.1007/s10018-023-00387-9
Degirmenci T., Yavuz H. Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy? Energy. 2024. Vol. 299. 131466. DOI: https://doi.org/10.1016/j.energy.2024.131466
Hedegaard T. F., Kongshoj K. How redistribution can make carbon taxes more acceptable to the public. The Social Science Journal. 2026. Vol. 63. Issue 1. P. 430-443. DOI: https://doi.org/10.1080/03623319.2024.2416774
Köppl A., Schratzenstaller M. Carbon taxation: A review of the empirical literature. Journal of Economic Surveys. 2022. Vol. 37. Issue 4. P. 1353-1388. DOI: https://doi.org/10.1111/joes.12531
Mehta D., Prajapati P. Asymmetric effect of environment tax and spending on CO2 emissions of European Union. Environmental Science and Pollution Research. 2024. Vol. 31. P. 27416–27431. DOI: https://doi.org/10.1007/s11356-024-32990-y
OECD. Effective Carbon Rates 2025. URL: https://www.oecd.org/en/publications/effective-carbon-rates-2025_a5a5d71f-en.html (дата звернення: 24.04.2026).
Okoth E. Effects of Tax Incentives and Subsidies on Economic Growth in Developing Economies. International Journal of Research and Innovation in Social Science. 2023. Vol. VII. Issue VII. DOI: https://dx.doi.org/10.47772/IJRISS.2023.70744
Sebele-Mpofu F. Y., Gomera D., Sibanda B. Tax incentives: A panacea or problem to enhancing economic growth in developing countries. Journal of Accounting, Finance and Auditing Studies. 2022. Vol. 8/2. P. 90-123. DOI: https://doi.org/10.32602/jafas.2022.012
Semet R. Coordinating social equity and emissions: Challenges in carbon tax policy. Energy Policy. 2024. Vol. 185. 113954. DOI: https://doi.org/10.1016/j.enpol.2023.113954
Shang B. The Poverty and Distributional Impacts of Carbon Pricing. Review of Environmental Economics and Policy. 2023. Vol. 17. Number 1. DOI: https://www.journals.uchicago.edu/doi/10.1086/723899
Ullah S., Luo R., Adebayo T. S. Dynamics between environmental taxes and ecological sustainability: Evidence from top-seven green economies by novel quantile approaches. Sustainable Development. 2023. Vol. 31. P. 825–839. DOI: https://doi.org/10.1002/sd.2423
Wolde‑Rufael Y., Mulat‑Weldemeskel E. Effectiveness of environmental taxes and environmental stringent policies on CO2 emissions: the European experience. Environment, Development and Sustainability. 2023. Vol. 25. P. 5211–5239. DOI: https://doi.org/10.1007/s10668-022-02262-1
World Bank. State and Trends of Carbon Pricing 2025. URL: https://www.worldbank.org/en/publication/state-and-trends-of-carbon-pricing
Zhu N., Zhou Y., Zhang S., Yan J. Tax incentives and environmental, social, and governance performance: empirical evidence from China. Environmental Science and Pollution Research. 2023. Vol. 30. P. 54899–54913. DOI: https://doi.org/10.1007/s11356-023-26112-3
