Economic Instrument in Environmental Management: A Case Study of Environmental Protection Tax in Vietnam

Abstract

Because of its fast economic expansion in recent decades, Vietnam, a developing country, is increasingly plagued by environmental degradation. Vietnam is also one of the five countries most affected by climate change. In 2012, the government enacted the Environmental Protection Tax Law, which included a broad-based package of environmental levies. The implementation of the Environment Protection Tax (EPT) is one component of a larger process of greening the Vietnamese economy. Environmental taxes have the potential to alleviate some of the environmental issues that developing countries face. At the same time, it promotes long-term patterns of production and consumption. This offers financial resources required to enhance social and environmental indices. However, environmental taxes may have both direct and indirect consequences, such as increased prices for products and services, which have a detrimental impact on social justice, particularly in low-income households. This page will give a more in-depth explanation of environmental protection tax implementation, accomplishments, and impacts. It is also responsible for analyzing issues and making recommendations for future EPT improvements.