THE IMPACT OF GREEN TAXATION ON SUSTAINABLE DEVELOPMENT: A POLICY PERSPECTIVE

Abstract

This paper explores the role of green taxation as a strategic tool for promoting sustainable development from a policy standpoint. Green taxes, also known as environmental taxes, are designed to internalize environmental costs by penalizing pollution and encouraging eco-friendly practices. The study analyzes how fiscal instruments can influence both corporate behavior and consumer choices, ultimately contributing to environmental protection, resource efficiency, and climate change mitigation. Through the examination of various national and international policy frameworks, the paper highlights the effectiveness, limitations, and socio-economic implications of implementing green taxes. It also underscores the importance of balancing environmental goals with economic equity and public acceptance. The findings suggest that a well-structured green tax policy, supported by transparent governance and public engagement, can significantly enhance a nation’s progress toward sustainable development.