THE ROLE OF ENVIRONMENTAL TAXES IN BIOECONOMY DEVELOPMENT: CASES OF LITHUANIA AND GEORGIA

Abstract

The bioeconomy development is an important strategy for increasing sustainability and to achieve European Green deal. Environmental taxes are one of the most important tools for the development of the bioeconomy. The research aim is to compare the role of environmental taxes in countries with different levels of economic development Lithuania and Georgia. The authors explore the following question: whether the policy of environmental taxes can contribute to the development of bioeconomy. Research results show that aims of bioeconomy and environmental taxes are the same and contribute to solving several societal challenges. Environmental taxes in Lithuania are more important and help to development bioeconomy. Lithuania does not yet levy a carbon tax, although it participates in the EU emissions trading system. Having started to implement the Green Deal, Lithuania will have to apply carbon taxes and other environmental taxes. Environmental tax burden in Georgia is very low, but this country has the potential to develop the bioeconomy.