Search Results (9)

This study examines the impact of corporate sustainable tax strategies on investment scale and firm value using signaling theory. We measure Sustainable tax strategy through the coefficient of variation of cash effective tax rates over a five-year period. Using 3121 firm-year observations of Korean listed companies from 2010 to 2023, we employ Two-Stage Least Squares regression to address endogeneity concerns. Our findings support two main hypotheses. First, firms pursuing sustainable tax strategies engage in significantly larger capital investments, suggesting that consistent tax policies signal effective risk management capabilities and enable systematic long-term investment planning. Second, the interaction effect between sustainable tax strategies and capital expenditures positively influences firm value, indicating that sustainable tax planning enhances investment efficiency. The results demonstrate that firms with lower tax rate volatility send positive signals to external stakeholders about their predictable cash flows, superior internal control systems, and strategic management capabilities. This study contributes to the literature by applying signaling theory to tax strategy research and provides practical insights for corporate managers regarding the importance of long-term tax planning over short-term tax minimization. The findings also support UN Sustainable Development Goals 8, 9, and 12 by demonstrating how sustainable financial practices promote responsible corporate decision-making. Full article

Tax expenditure management is one of the tools for conducting responsible fiscal policy. Unlike direct expenditures, tax expenditures do not consume resources, but allow the achievement of certain social and economic goals. The purpose of this study is to test the hypothesis of the expediency of using the mechanism of tax expenditures to influence investment activities and the development of priority sectors of the economy. The object of this study was a sample of nine countries of the G-20 group, whose reports provided data on the share of tax expenditures related to investment support and stimulating the development of priority sectors of the economy. The practice of generating reports on tax expenditures is quite common in developed countries, but there are several limitations for cross-country comparison: national characteristics of fiscal elements, and the level of openness and transparency of data on tax expenditures. The scale of using tax expenditures is determined by the multidimensional average method; countries are rated according to the value of the integral indicator. The scale of tax breaks determines the position in the ranking. The effectiveness of using tax breaks is assessed through the coefficient of increase in investment and the coefficient of increase in industrial production. The assessment results show whether economic indicators are outpacing the growth rate of tax benefits and preferences. A study of panel data revealed the average degree of influence of the total amount of tax expenditures on the dynamics of capital investments. The allocation of a target group of tax expenditures related to investment support showed a weak degree of influence on the dynamics of capital investment volumes. The results obtained can be explained by the fact that the allocation of a target group of tax expenditures may not reflect the full range of tax benefits provided to support investments, which is due to the peculiarities of the system of accounting and assessment of tax expenditures in a particular country. In addition, the contribution of tax expenditures may be insignificant if direct forms of support prevail. Full article

China has implemented an environmental protection tax for large-scale agricultural farming to address environmental pollution caused by livestock and poultry breeding. Studying the environmental management of large-scale pig farming is crucial for controlling agricultural pollution. However, the economic impact and effectiveness of the current tax design, including responsibility sharing, tax rates, and taxpayers, are unclear. This study aims to address these gaps. Firstly, two types of taxation principles, production-based and consumption-based, are established, and their effects on pollution emissions distribution between pig production and marketing areas are comparatively analyzed. Secondly, the economic impact of consumption-based environmental taxes is estimated from inter-provincial and rural–urban perspectives under the current tax mechanism. Thirdly, a new alternative tax rate aligned with inter-provincial pig consumption levels is proposed based on the consumption principle. By comparing alternative tax systems, the potential impact of the current environmental tax on the regional economic burden is analyzed. The results highlighted that a production-based tax system resulted in 83% of regions experiencing varying degrees of implicit emission transfers, and a consumption-based tax system helped coordinate the environmental economic burden between pig production and marketing regions. Additionally, a linear relationship between tax rates and pork consumption expenditure not only alleviated the overall economic burden, leading to tax savings in 30% of regions, but also increased the national environmental revenue from the pig farming industry, resulting in a remarkable 147% rise in overall environmental tax revenue. These findings provide theoretical support for adjusting responsibility and economic burden through environmental tax modifications, facilitating the establishment of a compensation mechanism for the benefits between pig production and marketing areas. Full article

The energy crisis caused by global structural changes in the economic sphere is the cause accelerating the energy transition based on the concept of sustainable development. This study is to test the hypothesis about the incentive effect of tax expenditures on alternative energy and energy conservation. The objects of empirical research are the EU, OECD countries, OECD partner countries and Russia from 2018–2020. The tools of scientific research are based on methods of economic–statistical and comparative analysis and expert judgments. The concept of tax expenditures in terms of decarbonization is analyzed using a systematic approach. The integrated methodological approach shows the relationship between the tax policy and government strategies in achieving sustainable development goals to ensure the transition to rational energy consumption patterns and sustainable energy sources. The authors analyze incentives for the energy sector and alternative energy sources in the considered groups of countries, and they assess the scale of tax expenditures in the energy sector for OECD countries. There are two types of tax expenditures for achieving environmental sustainability—increasing renewable energy sources and improving the energy efficiency. The authors apply the multivariate average formula to assess the scale of tax incentives in OECD countries. The results are typified depending on the scale of tax expenditures as one of the tools and these results are grouped according to the dynamics. In the presented sample, a wide range of tax benefits and preferences is typical for the leading countries in the ranking. The countries at the bottom of the ranking support fossil fuels, but they have already started the energy transition. Full article

Energy and climate policies play an increasingly important role in the world in the era of climate change and rising energy prices. More often, the importance of the development of the energy sector and climate protection is seen from the point of view of the expenditures that will need to be absorbed in the economy, with the potential for increased energy prices. However, it should be remembered that this is also related to the issue of fuel poverty and the inability to meet basic energy needs by parts of society. The aim of the paper is to assess the importance of macroeconomic policy instruments in reducing fuel poverty, using Poland as an example. It will be examined whether and how the government influenced this phenomenon (directly or indirectly), through which instruments, and which instruments (fiscal, monetary or energy-climate policy) played the most important role in shaping the scale of fuel poverty in Poland, with an emphasis on the role of monetary and fiscal policy instruments. The analysis covered the period from 2004 to mid-2021. The results of the research showed that in Poland there is a lack of policy directly aimed at reducing fuel poverty, and the government affects the scale of fuel poverty indirectly mainly through macroeconomic policy instruments, i.e., fiscal and monetary policy instruments. The main and most effective instruments for reducing fuel poverty in Poland are social transfers. Other instruments that have a statistically significant impact on this poverty rate are the level of tax burdens and short-term interest rates. The analysis also revealed some opportunities for effective fuel poverty reduction policies. It was proven that in addition to fiscal policy, monetary policy, which would stimulate a decrease in short-term interest rates, is also an effective way to reduce the fuel poverty rate in Poland. Full article

A hybrid Moving Bed Biofilm Reactor—Membrane Bioreactor (MBBR-MBR) was developed for the treatment of wastewater from a Spanish textile company. Compared with conventional activated sludge (CAS) treatment, the feasibility of this hybrid system to reduce economic and environmental impact on an industrial scale was conducted. The results showed that, technically, the removal efficiency of COD, TSS and color reached 93%, 99% and 85%, respectively. The newly dyed fabrics performed with the treated wastewater were qualified under the standards of the textile industry. Economically, the values of Capital Expenditure (CAPEX) calculated for the hybrid MBBR-MBR system are profitable because of the reduction in Operational Expenditure (OPEX) when compared with CAS treatment, due to the lower effluent discharge tax thanks to the higher quality of the effluent and the decolorizing agent saved. The result of Net Present Value (NPV) and the Internal Rate of Return (IRR) of 18% suggested that MBBR-MBR is financially applicable for implantation into the industrial scale. The MBBR-MBR treatment also showed lower environmental impacts than the CAS process in the life cycle assessment (LCA) study, especially in the category of climate change, thanks to the avoidance of using extra decolorizing agent, a synthetic product based on a triamine. Full article

Large amounts of blue carbon exist in the ecosystems of coastal wetlands. Accurate calculations of the stocks and economic value of blue carbon in various plant communities can facilitate vegetation rehabilitation. Based on this objective, first, a blue carbon estimation model was constructed by combining a Carnegie-Ames-Stanford Approach (CASA) model, and second, the distribution pattern of blue carbon and flow direction of ecosystem services (carbon sequestration) in a coastal wetland in China was analyzed utilizing a combination of field surveys, remote sensing data, and laboratory analysis techniques. Finally, the wetland carbon sequestration value and its income-expenditure status were measured using the carbon tax method. The results show that the aboveground net primary productivity of coastal wetland vegetation exhibits a non-zonal distribution in the south-north direction, whereas it presented a three-level gradient distribution, characterized as “low (200–300 g/m²∙y)–intermediate (300–400 g/m²∙y)–high (400–500 g/m²∙y)”, in the east-west direction. The accumulation of carbon gradually increased from the ground surface to the underground (litter < underground roots < soil) in Spartina alterniflora and Phragmites australis. On the type scale, Spartina alterniflora and Phragmites australis wetlands were of the “blue carbon” net outflow type (supply type), with mean annual outflow carbon sequestration values of 3272.3 $/ha and 40.9 $/ha, respectively. The Suaeda glauca wetland was of the “blue carbon” net inflow type (benefit type), with a mean annual inflow carbon sequestration value of 190.7 $/ha. Full article

This study aims to identify, from among business strategies presented in Miles and Snow (1978, 2003), those that increase the future performance or growth sustainability of unlisted small and medium-sized enterprises (SMEs) in Korea. (This study applied the scope of SMEs based on Article 2 of the Enforcement Decree of the Tax Exemption Restriction Act in Korea. The Korean tax law sets the scope of SMEs based on independence criteria set by the scale of sales, assets, and affiliation, and subordination. For example, the size standard of a manufacturing industry can be regarded as a small business if the average sales amount is less than 150 billion won or the total amount of assets is less than 500 billion won for three years.) In addition, it analyzes measured variables of business strategy for factors influencing unlisted SMEs’ future performance and growth potential. The objective is to determine a business strategy for unlisted SMEs, which are small, financially challenged, and have shorter lifespans and faster growth rates. The results highlight that investment in research and development (R&D) for new products influences both future performance and growth sustainability. R&D is an important intangible resource of the firm, which increases future risk due to high future uncertainty, but it is also an important factor to increase future performance or value based on resource-based theory. In the accounting field, research and development expenditure also provided evidence of future excess return or performance. This study is meaningful because it identifies the role of research and development in increasing future growth sustainability in SMEs, thus emphasizing change and innovation. Full article

The circular economy has become one of the main strategic issues on a global scale in the striving towards achieving sustainable economic systems. The traditional model of production, consumption and disposal is being transformed into a recycling and waste integration process from the beginning of the production cycle of a product until its full use by the consumers. While measuring the progress towards a circular economy can be a challenging factor, several indicators can be used to evaluate developments in this direction. That is why recycling in general, as well as recycling of municipal waste, have become a main strategic issue in the process towards implementation of circular economy principles. The main objective of the paper is to elaborate a panel regression model for determining the dependency between main indicators, that are indicating progress of the circular economy in Europe, such as the recycling rate of municipal waste, circular material use rate, R&D expenditure by all sectors, trade in recyclable raw materials and environmental tax revenues, resource productivity and domestic material consumption. Furthermore, the fixed and random effects regression models estimations are included and tested through the Durbin–Hausman–Wu statistic. The research in this study is based on the analysis of regressions in the circular economy fields in the European Union and intends to contribute to the research in the field, being an emerging scientific topic due to changing technological, economic and environmental factors. Full article