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Compliance Behavior in Environmental Tax Policy

Author

Listed:
  • Suci Lestari Hakam

    (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia)

  • Agus Rahayu

    (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia)

  • Lili Adi Wibowo

    (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia)

  • Lazuardi Imani Hakam

    (Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia)

  • Muhamad Adhi Nugroho

    (Ministry of Finance, Republic of Indonesia, Pekanbaru 28293, Indonesia)

  • Siti Sarah Fuadi

    (Indonesia’s Sustainable Economy and Financial Advancement (ISEFA), Bandung 40132, Indonesia)

Abstract

This study examines compliance behavior in the context of environmental tax policies, highlighting the essential role that these policies play in achieving the objectives of the Sustainable Development Goals (SDGs). Environmental taxes are crucial instruments for reducing environmental damage and increasing energy efficiency. Nevertheless, taxpayer compliance, which is impacted by several variables, including social acceptability, regulatory quality, and perceptions of fairness, is a key component of these policies’ efficacy. In contrast to earlier research, which frequently concentrated on certain kinds of tax or discrete policy mechanisms, this study takes a broad approach, looking at a range of environmental taxation instruments. Emerging trends, significant factors influencing compliance behavior, and noteworthy contributions from eminent authors and organizations are all identified via bibliometric and scientometric analyses. To create fair and effective environmental tax policies, interdisciplinary approaches and international collaboration are required. Along with presenting policies to improve environmental regulation compliance, this study offers insightful advice for businesses that can help them innovate toward sustainability and adjust to shifting policy. It also provides a solid theoretical base for future researchers by highlighting important areas that require more investigation, especially when it comes to the wider effects of environmental taxes on various industries.

Suggested Citation

  • Suci Lestari Hakam & Agus Rahayu & Lili Adi Wibowo & Lazuardi Imani Hakam & Muhamad Adhi Nugroho & Siti Sarah Fuadi, 2024. "Compliance Behavior in Environmental Tax Policy," JRFM, MDPI, vol. 17(12), pages 1-24, November.
  • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:542-:d:1533191
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    References listed on IDEAS

    as
    1. Fischer, Carolyn & Springborn, Michael, 2011. "Emissions targets and the real business cycle: Intensity targets versus caps or taxes," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 352-366.
    2. Donna Bobek & Amy Hageman & Charles Kelliher, 2013. "Analyzing the Role of Social Norms in Tax Compliance Behavior," Journal of Business Ethics, Springer, vol. 115(3), pages 451-468, July.
    3. Jia-Ming Wang & Pin-Chao Liao & Guan-Biao Yu, 2021. "The Mediating Role of Job Competence between Safety Participation and Behavioral Compliance," IJERPH, MDPI, vol. 18(11), pages 1-19, May.
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