Environmental Taxes and Green Levies: Policy Mechanisms for Regulating High-Polluting Industries

In recent years, environmental taxes and green levies have emerged as key policy tools for addressing the adverse externalities of industrial pollution. These fiscal measures, imposed on high-emission and resource-intensive enterprises, aim to internalize environmental costs, incentivize cleaner production, and promote sustainable business practices. Unlike traditional regulatory approaches, environmental taxation combines market-based efficiency with revenue-generation potential, enabling governments to finance environmental initiatives while influencing corporate behavior. This paper explores the conceptual framework, policy rationale, and practical implications of implementing environmental taxes on polluting industries. Drawing upon international experiences and empirical evidence from both developed and emerging economies, it examines the effects of such taxation on environmental, social, and governance (ESG) performance, corporate investment strategies, and innovation capacity. The analysis highlights the importance of policy design particularly tax rates, coverage scope, and complementary incentives in maximizing environmental benefits without imposing disproportionate economic burdens. The study concludes that well-structured green levies can act as an effective instrument in achieving emission reduction targets, stimulating technological innovation, and aligning corporate strategies with sustainable development goals.

کلیدواژه ها:

Environmental tax ، Green levy ، Polluting industries ، ESG performance ، Corporate sustainability ، Fiscal policy ، Sustainable development ، Pollution regulation ، Innovation incentives