IDEAS home Printed from https://ideas.repec.org/a/fru/finjrn/240307p98-113.html
   My bibliography  Save this article

Tax Incentives for Transition to Rational Consumption and Production Patterns

Author

Listed:
  • Svetlana I. Chuzhmarova

    (Pitirim Sorokin Syktyvkar State University, Syktyvkar, Russian Federation; Perm Branch of the Institute of Economics, Ural Branch of the Russian Academy of Sciences, Perm, Russian Federation)

  • Andrei I. Chuzhmarov

    (Komi Republican Academy of State Service and Administration, Syktyvkar, Russian Federation)

Abstract

The presented work touches upon the problem of economic transition to more environmentally friendly types of production and more careful use of resources, which is topical for the world community. The problem of transition from environmentally costly production models to more sustainable ones is reflected in the UN’s Sustainable Development Goal 12, titled “responsible consumption and production”. Achievement of this global goal is impossible without state financial support and investment incentives. One of the main financial instruments of stimulation are taxes, which at the national level allow to directly and indirectly influence producers of environmentally friendly products and their transition to new green technologies, as well as consumers. The problem of increasing the impact of taxes pushes for the transformation of taxation and the formation of new incentives. The arsenal of developed and developing countries has a wide range of fiscal instruments and accumulated experience of tax impact on production and consumption, the study of which can be useful in the formation of tax policy. The purpose of this paper is to analyze the experience of individual countries and systematize the tools of tax incentives for the transition to more environmentally friendly types of production and rational consumption of resources and justification of promising directions of tax impact. Based on the study of international experience, the authors determine the approaches of countries to the construction of tax incentives for the rational development and use of natural resources, reduction of environmental pollution. They also substantiate the need for tax support for building up scientific and technological potential, sustainable tourism and sustainable public procurement. The next promising direction of research may be the formation of tax instruments to eliminate market imbalances reflected in wasteful consumption of resources, transformation of indirect taxation of consumption, tax support for social projects, tax regulation of energy efficiency.

Suggested Citation

  • Svetlana I. Chuzhmarova & Andrei I. Chuzhmarov, 2024. "Tax Incentives for Transition to Rational Consumption and Production Patterns," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 98-113, June.
    • Handle: RePEc:fru:finjrn:240307:p:98-113
    DOI: 10.31107/2075-1990-2024-3-98-113
    as

    Download full text from publisher

    File URL: https://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2024/3/statii/07_3_2024_v16.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31107/2075-1990-2024-3-98-113?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Aubert, Diane & Chiroleu-Assouline, Mireille, 2019. "Environmental tax reform and income distribution with imperfect heterogeneous labour markets," European Economic Review, Elsevier, vol. 116(C), pages 60-82.
    2. Nobuo Akai & Hikaru Ogawa & Yoshitomo Ogawa, 2011. "Endogenous choice on tax instruments in a tax competition model: unit tax versus ad valorem tax," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(5), pages 495-506, October.
    3. Alena Kireyeva & Milyausha Pinskaya, 2022. "Providing Incentives for Intellectual Labor through Tax Policy in Belarus," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 61-73, June.
    4. Yamazaki, Akio, 2022. "Environmental taxes and productivity: Lessons from Canadian manufacturing," Journal of Public Economics, Elsevier, vol. 205(C).
    5. Zhanna A. Mingaleva & Yurii V. Starkov, 2021. "The Role of Environmental Innovation in Green Modernization of Industrial Enterprises," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 79-92, October.
    6. Milyausha R. Pinskaya & Nikolay S. Milogolov & Suren F. Adamyan, 2018. "Tax Treaty Shopping: Risk Analysis at the Macro Level (on the Example of the Republic of Armenia)," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 38-52, August.
    7. Khan, Yasir & Liu, Fang & Hassan, Taimoor, 2023. "Natural resources and sustainable development: Evaluating the role of remittances and energy resources efficiency," Resources Policy, Elsevier, vol. 80(C).
    8. Igor A. Yakovlev & Ludmila S. Kabir, 2018. "Green Investment Financing Mechanism as an Element of the National Strategy for Sustainable Development Financing," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 9-20, June.
    9. Igor A. Yakovlev & Lyudmila S. Kabir & Svetlana I. Nikulina, 2022. "The National Strategy for Financing the Energy Transition: Assessing Opportunities and Finding Solutions," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 9-24, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cheng, Yue & Zhao, Gongyan & Meng, Wentao & Wang, Qianrong, 2024. "Resources utilization, taxation and green education: A path to sustainable power generation," Resources Policy, Elsevier, vol. 88(C).
    2. Svetlana I. Chuzhmarova & Andrei I. Chuzhmarov, 2023. "Tax Incentives for Investments in Green Technologies: Experience of Selected Countries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 74-89, April.
    3. Jan SIROKY & Jirina KRAJCOVA & Jana HAKALOVA, 2016. "The taxation of agricultural land with the use of multi-criteria analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(5), pages 197-204.
    4. Gatti, Donatella, 2022. "Going green and (un)equal ? Political coalitions, redistribution, and the environment," Economic Modelling, Elsevier, vol. 116(C).
    5. Qi, Yu & Zhang, Jianshun & Chen, Jianwei, 2023. "Tax incentives, environmental regulation and firms’ emission reduction strategies: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    6. Kumbhakar, Subal C. & Badunenko, Oleg & Willox, Michael, 2022. "Do carbon taxes affect economic and environmental efficiency? The case of British Columbia’s manufacturing plants," Energy Economics, Elsevier, vol. 115(C).
    7. Mireille Chiroleu-Assouline & Mouez Fodha, 2023. "Debt, tax and environmental policy [Dette, taxe et politique environnementale]," Post-Print halshs-04181981, HAL.
    8. Stephie Fried & Kevin Novan & William B. Peterman, 2021. "Recycling Carbon Tax Revenue to Maximize Welfare," Finance and Economics Discussion Series 2021-023, Board of Governors of the Federal Reserve System (U.S.).
    9. Wang, Jing & Yu, Huaying & Ren, Daowen & Zhang, Jocelyn, 2023. "Promoting mineral resources consumption efficiency: Evidence from technology of big data," Resources Policy, Elsevier, vol. 86(PB).
    10. Xu, Jin & Liu, Chengjun & Dou, Gang & Cai, Yunfei, 2024. "Mineral resource management in Chinese rural areas: Policy assessment for green economic growth," Resources Policy, Elsevier, vol. 90(C).
    11. Magnus Hoffmann & Marco Runkel, 2012. "Why Countries Compete in Ad Valorem Instead of Unit Capital Taxes," CESifo Working Paper Series 3893, CESifo.
    12. Kenneth Castellanos & Garth Heutel, 2024. "Unemployment, Labor Mobility, and Climate Policy," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 11(1), pages 1-40.
    13. Liu, Guangwei & Liang, Kaipeng, 2024. "The role of technological innovation in enhancing resource sustainability to achieve green recovery," Resources Policy, Elsevier, vol. 89(C).
    14. Yuya Kikuchi & Toshiki Tamai, 2024. "Unemployment and endogenous choice on tax instruments in a tax competition model: unit tax versus ad valorem tax," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(2), pages 533-551, April.
    15. Bas (B.) Jacobs & Rick (F.) van der Ploeg, 2017. "Should Pollution Taxes Be Targeted At Income Redistribution?," Tinbergen Institute Discussion Papers 17-070/VI, Tinbergen Institute.
    16. Liu, Wen & Xu, Jiaqi & She, Shengxiang, 2023. "Green economic development by increasing efficiency of natural resource consumption," Resources Policy, Elsevier, vol. 85(PB).
    17. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    18. Shiyu Bo, 2021. "Environmental Regulations, Political Incentives and Local Economic Activities: Evidence from China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(3), pages 812-835, June.
    19. Stephie Fried & Kevin Novan & William B. Peterman, 2024. "Understanding the Inequality and Welfare Impacts of Carbon Tax Policies," Working Paper Series 2024-17, Federal Reserve Bank of San Francisco.
    20. Koethenbuerger, Marko, 2014. "Competition for migrants in a federation: Tax or transfer competition?," Journal of Urban Economics, Elsevier, vol. 80(C), pages 110-118.

    More about this item

    Keywords

    tax; sustainable development; production; consumption; incentives; SDG 12;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fru:finjrn:240307:p:98-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gennady Ageev (email available below). General contact details of provider: https://edirc.repec.org/data/frigvru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.