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749. Tax incentives to facilitate sustainable investments
Invited abstract in session WB-59: OR in Accounting: Planning, Taxation, and Reporting, stream OR in Financial and Management Accounting.
Wednesday, 10:30-12:00Room: S08 (building: 101)
Authors (first author is the speaker)
| 1. | Carolin Famulla
|
| Chair for Quantitative Accounting & Financial Reporting, Bielefeld University |
Abstract
With the so-called EU-taxonomy regulation in 2020, the European Union established a uniform classification system to determine environmentally sustainable economic activities. According to the EU regulation, economic activities are environmentally sustainable if they contribute substantially the achievement of certain environmental objectives, e.g. climate change mitigation or pollution prevention and control. Insofar as they do not explicitly contribute the environmental objectives, economic activities should not significantly harm the environmental objectives. The EU regulation includes a range of measures to achieve the defined environmental objectives. Incentives should be provided to invest in sustainable and climate friendly economic activities. In this context, the question arises which tax incentives exist to facilitate sustainable investments and how these incentives affect the investment decision. I implemented different tax incentive measures, like levying an environmental tax or tax exemptions for sustainable investments, and investigated their effect on the investment decision made on basis of the net present value criterion. This is compared with the case that the decision is only made on basis of the tax burden.
Keywords
- Accounting
- OR in Sustainability
Status: accepted
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