Title: The Role of Environmental Taxation in Corporate Sustainability Strategies
Authors: Oghenerume Augoye, Titilayo Priscilia Muyiwa-Ajayi, Adedamola Sobowale
Volume: 9
Issue: 3
Pages: 105-114
Publication Date: 2025/03/28
Abstract:
This paper examines the role of environmental taxation as a strategic tool in corporate sustainability initiatives. Environmental taxes, designed to internalize the external costs of environmental degradation, have become pivotal in shaping corporate practices toward more sustainable models. The study explores how environmental taxes, including carbon taxes, waste disposal fees, and pollution levies, influence corporate decision-making, investment in green technologies, and operational adjustments to reduce ecological impact. By reviewing current literature and analyzing case studies, the paper demonstrates how companies integrate environmental taxes into their sustainability strategies, driving innovation, reducing emissions, and enhancing resource efficiency. Additionally, the research highlights the dual benefits of environmental taxation-spurring companies toward sustainable practices while generating government revenue to fund environmental programs. The findings suggest that effective environmental tax policies, when paired with clear regulatory frameworks and incentives, not only promote corporate environmental responsibility but also foster competitive advantage through cost savings and improved brand reputation. This study contributes to the growing body of knowledge on sustainable business practices, offering insights into the implications of environmental taxation for corporate strategy and sustainability performance.