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The dynamic relationship between green tax incentives and environmental protection

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Abstract

The purpose of this study is to examine the impact of green tax incentives such as investment tax credit and taxable income deductions related to the environmental sustainability and climate change which are becoming more popular in developing countries, whereas introducing green tax incentives related to the environment and climate change helps and meets the sustainability objectives of growth and development. For this purpose, we selected the top 100 listed companies on the Swedish stock market (SSM), Nasdaq Stockholm (SN), in order to better understand the real facts and figures of green tax environment. This study uses a longitudinal research design because sample observations vary across firms and over a short time and conducts probit and logistic regression to identify the beneficiaries of the tax incentives. The findings show that different firm-level characteristics significantly impact the probability of being an ITC beneficiary.

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Data availability

The data is available on request from the corresponding author.

Notes

  1. Mullainathan, S., & Thaler, R. H. (2000). Behavioral economics.

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Author information

Authors and Affiliations

  1. Department of Economics, Lahore College for Women University, Lahore, Pakistan

    Mariuam Shafi

  2. Research Institute (IC-UAC), Universidad Andina del Cusco, Cusco, Peru

    Carlos Samuel Ramos-Meza

  3. Department of Management, Teerthanker Mahaveer University, Uttar Pradesh, Moradabad, India

    Vipin Jain

  4. Department of Finance, American University in the Emirates, Dubai, UAE

    Asma Salman

  5. Department of Basic Sciences, College of Science and Theoretical Studies, Saudi Electronic University, Dammam, 32256, Saudi Arabia

    Mustafa Kamal

  6. Department of Management Sciences, University of Lahore, Lahore, Pakistan

    Malik Shahzad Shabbir

  7. Department of Information Technology, College of Computing and Informatics, Saudi Electronic University, Dammam, 32256, Saudi Arabia

    Masood ur Rehman

Authors
  1. Mariuam Shafi
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  2. Carlos Samuel Ramos-Meza
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  3. Vipin Jain
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  4. Asma Salman
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  5. Mustafa Kamal
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  6. Malik Shahzad Shabbir
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  7. Masood ur Rehman
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Contributions

Mariuam Shafi: conceptualization and investigation; Carlos Meza: data creation and resources; Vipin Jain: methodology. Asma Salman: methodology and formal analysis; Mustafa Kamal: data analysis; Malik Shahzad: result and discussion section. Masood ur Rahman: abstract and conclusion sections and formation of paper as per journal requirements.

Corresponding author

Correspondence to Mariuam Shafi.

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Shafi, M., Ramos-Meza, C.S., Jain, V. et al. The dynamic relationship between green tax incentives and environmental protection. Environ Sci Pollut Res 30, 32184–32192 (2023). https://doi.org/10.1007/s11356-023-25482-y

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  • DOI: https://doi.org/10.1007/s11356-023-25482-y

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