The Potential of European Green Deal Taxation as a New Approach for Promoting Environmental Sustainability and Economic Development in the European Union

What is it about?

The European Union policy of the EU Green Deal taxation and digital transformation represents a significant change in the EU policy towards more sustainable and innovative practices as well as economic development in the region. Green taxation can be an essential and effective instrument in shaping the new development toward green economics, facing a critical challenge in reducing Carbon emissions and promoting environmental sustainability. The objective of this study is to analyses the potential for using green taxation as a new approach for promoting environmental sustainability and economic development in the European Union. The study will highlight the latest insight into the recent development of the environmental taxation of the European Union. The paper argues that the success of the Green Deal taxation measure will depend on careful design and implementation, as well as coordination with other policy tools. Lastly, Environmental taxation can significantly contribute to the EU achieving its ambitious sustainability goals while also promoting economic growth.

Featured Image

Why is it important?

A key aspect of the discussion in the literature pertains to examination of whether environmental taxes can potentially contribute to economic growth in the European Union. The findings show that The European Green Deal taxation can correspondingly help to reduce the largely environmental impact of economic activities by providing a clear price signal for negative entities correlated with pollution. Likewise, these policies can incentivize companies to reduce their environmental impact by internalizing the cost of environmental damages, encourage the business to invest in clean technologies, and reducing their carbon footprint in order to sustain the competitiveness in the market