Fiscal regulation policy and financial incentives impact on the environmental management

Abstract

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.

Environmentally related taxes and their influence on decarbonization of the economy

“…Heine and Black (2018) argue that well-designed environmental taxation is particularly valuable in developing countries, where it can reduce emissions, increase domestic revenues, and create positive welfare impacts. However, despite significant potential, large gaps in environmental tax levels persist around the world, especially in developing countries (Patel et al, 2023;Storonyanska et al, 2023;Davydenko et al, 2023). The dynamics of environmental tax revenues are inferior to the dynamics of general tax revenues in GDP, and in this regard, attracting additional funding and financial outsourcing is an option (Koval et al, At the same time, the impact of environmentally related taxes on the decarbonization of the economy has not been comprehensively studied.…”