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Green Taxes in Africa: Opportunities and Challenges for Environmental Protection, Sustainability, and the Attainment of Sustainable Development Goals

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  • Favourate Y. Mpofu

    (School of Accounting, University of Johannesburg, Auckland Park, P.O. Box 524, Johannesburg 2006, South Africa)

Abstract

Discussions on the impact of climate change and ways of protecting climate change impact driven by environmentally unfriendly activities have taken the center stage of global development agendas. The importance of environmental sustainability is also reflected in the 2030 Sustainable Development Goals (SDGs). Green taxes have become pivotal to protecting the environment, revenue generation and achievement of the SDGs. Through a critical literature review, this paper explores the opportunities and challenges associated with green taxes with respect to revenue mobilization, protection of the environment and delivery of the SDGs. The paper gives an insight to green taxes, exploring the motives of green taxes and the possible implications for environmental sustainability, sustainable development, and attainment of the SDGs in the African context. Fossil fuels such as coal, crude oil and natural gases are fundamental sources of energy for African countries. Therefore, the continent faces a dilemma of how to ensure green economic growth, reduce environmental and climate change problems, and at the same time foster effective revenue mobilization. The review established that while green taxes can provide an opportunity for green transformation policy reforms and boost revenue mobilization to stimulate inclusive and sustainable growth and economic recovery from the COVID-19-induced economic recession, the taxes can increase inequality, heighten the cost of energy, and increase energy poverty for those dependent on fossil fuel for energy. The lack of affordability and access would compromise SDGs such as 7 and 1 (access to clean energy and poverty reduction, respectively). The taxes could lead to a disjointed value chain with consumers disadvantaged and an increase in black market activities as people seek cheaper but unsafe alternatives, indirectly increasing the social costs such as health risks and challenges, poverty, and unemployment.

Suggested Citation

  • Favourate Y. Mpofu, 2022. "Green Taxes in Africa: Opportunities and Challenges for Environmental Protection, Sustainability, and the Attainment of Sustainable Development Goals," Sustainability, MDPI, vol. 14(16), pages 1-26, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:16:p:10239-:d:890805
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    Cited by:

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    2. Qinglan Wu & Guifu Chen & Jing Han & Liyan Wu, 2022. "Does Corporate ESG Performance Improve Export Intensity? Evidence from Chinese Listed Firms," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    3. Beata Zofia Filipiak & Dorota Wyszkowska, 2022. "Determinants of Reducing Greenhouse Gas Emissions in European Union Countries," Energies, MDPI, vol. 15(24), pages 1-24, December.
    4. Wenhui Luo & Gennian Tang & Peiling Yang & Chunxia Jia & Ruize Yang, 2024. "Examining Digital Economy’s Role in Urban Green Development: A Study of the Yangtze River Delta Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11250-11285, September.
    5. Jing Zhang & Yang Liu & Cuicui Liu & Su Guo & Junfu Cui, 2023. "Study on the Spatial and Temporal Evolution of High-Quality Development in Nine Provinces of the Yellow River Basin," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    6. Jules-Eric Tchapchet-Tchouto & Joseph Pasky Ngameni, 2024. "Better Environmental Tax Regulations, better Structural Change and Innovation: Evidence from CFA Franc countries along Africa’s green industrialization outlook," SN Business & Economics, Springer, vol. 4(11), pages 1-23, November.

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