Search Results (389)

This paper examines the effect of trade openness on corporate tax revenue in the Middle East and North Africa (MENA) region, where increased economic integration might incite more business activity and expand taxable corporate income but also intensify losses due to practices such as profit shifting. The study follows a quantitative empirical approach and applies a panel ARDL model to secondary data collected from international databases (World Bank and IMF), such as GDP, trade openness (exports and imports as % of GDP), inflation, corporate tax revenues, foreign direct investment inflows and tax evasion via informal economies, for a sample of ten developing countries from the MENA region, including Morocco, Tunisia, Egypt, Jordan, Lebanon, Algeria, Saudi Arabia, Oman, the United Arab Emirates, and Bahrain, over the period 2010–2023. We employ a PMG ARDL model to study our panel data, allowing the analysis of both short-run and long-run effects to investigate the relationship between trade openness and tax revenues. Our results show that in the long run, export-driven economies generate higher corporate tax revenues by expanding profitability and the tax base, and imports also positively affect revenues, indicating that trade openness stimulates economic activity. Conversely, FDI inflows reduce corporate tax revenues, consistent with profit shifting and tax incentives in developing countries. GDP growth does not necessarily increase tax receipts, likely due to tax elasticity effects and growth-oriented tax structures. Also, tax evasion appears to decline, likely reflecting improved compliance, and no significant short-run effects are observed. The results contribute to the literature on tax compliance and economic integration in the case of open economies in developing countries. From a practical perspective, our findings have implications for policymakers and tax regulators in the MENA region, as they highlight the dual nature of globalization for developing countries and their tax systems and underscore the need for effective compliance measures in trade and investment policies. Full article

Latin America faces growing challenges in the management of municipal solid waste (MSW). This is particularly evident in medium-sized and metropolitan cities where rapid urbanization, limited infrastructure, and high proportions of organic waste (40–70%) converge. This review synthesizes the most recent advances in organic waste management, valorization strategies, environmental performance, and policy frameworks in Mexico and Latin America. To provide a comprehensive overview, evidence from studies on informal recycling systems, route optimization, sustainable landfill siting, food waste valorization, life cycle assessments (LCAs), and biogas production is integrated. Techno-economic analyses of energy recovery from organic fractions are specifically reviewed. This review highlights that valorization of organic waste through composting, anaerobic digestion, food supplementation, and bioproduct generation can reduce greenhouse gas emissions by 40–70% compared to landfilling, with AD–composting hybrids achieving the highest reductions of 60–70%. Community composting achieved moderate reductions, 30–50%, but at significantly lower cost and with greater social co-benefits. These alternatives for valorizing the organic fraction extend the lifespan of both confined and open landfills. It also contributes to mitigating the public health impacts related to open dumping, disease vectors, and contaminated leachate. In short, this review also highlights shortcomings in policy coherence, financial mechanisms, source separation, and technology adoption. A strategic framework is proposed that prioritizes decentralized treatment systems, the integration of informal recyclers, tax incentives, community-based waste separation, and planning based on Life Cycle Assessment (LCA). The findings point to a viable strategy for transitioning from landfill dependency to circular waste management systems that improve the quality of life for the population of Latin America and the Caribbean. Full article

Indoor air quality (IAQ) in educational buildings plays a critical role in the health, cognitive performance, and well-being of occupants. Aging university facilities often rely on outdated ventilation systems that are not designed to meet current demands or respond to dynamic occupancy levels. This study investigates the performance and feasibility of various advanced ventilation strategies in comparison to an existing balanced mechanical ventilation (BMV) system in a university classroom accommodating 100 students. Using a Dynamic Building Energy Simulation Program, simulations were conducted to evaluate IAQ (using CO₂ levels), energy consumption, and thermal comfort under three retrofitting scenarios: BMV, demand-controlled ventilation (DCV), and hybrid ventilation combining natural and mechanical airflow. The simulations indicate that DCV cuts annual HVAC energy use by 33% relative to the baseline, while the hybrid strategy achieves the greatest reduction of 42% and maintains CO₂ levels and thermal comfort within recommended limits. Although hybrid systems provide seasonal advantages, their complexity may limit applicability. In addition to technical analysis, this study also explores the financial and tax-related challenges associated with retrofitting ventilation systems in university buildings. Investment payback periods, operational costs, and potential tax incentives are discussed to evaluate economic viability. Overall, the endorse hybrid ventilation as the most cost-effective strategy where mixed-mode control is feasible, and DCV as a practical alternative for buildings unable to employ natural ventilation. Full article

In response to growing concerns over global warming and energy sustainability, transitioning from fossil-fuel-based heating systems to renewable alternatives is essential. This study evaluates the economic and environmental performance of geothermal heat pumps for building heating and compares it with conventional coal-fired boilers, natural-gas boilers, and diesel furnaces. Using the heating degree-day (HDD) method, heating energy demand was analyzed for four U.S. cities—Anchorage (AK), San Francisco (CA), Salt Lake City (UT), and Las Vegas (NV)—representing diverse climatic zones. The analysis integrates thermodynamic and economic parameters, including the coefficient of performance (COP = 2–5) and annual fuel-utilization efficiency (AFUE = 80–97%), to evaluate heating-system performance and operational cost across different climatic regions. Sensitivity analysis with ±10% variations in fuel and electricity prices and system efficiencies demonstrates that geothermal heating remains the most stable and emission-efficient option under all scenarios. Results indicate that geothermal systems, despite higher reported initial investment, achieve lower operational and emissions-related costs and offer a robust and sustainable solution for decarbonizing building-heating systems. For example, the estimated seasonal geothermal heating cost is $370.59 in Anchorage compared with $646.48 for coal heating and $3375.65 for diesel systems. Furthermore, policy evaluation indicates that federal and state incentives, such as investment tax credit under the Inflation Reduction Act and rebate programs, can reduce installation costs by 25–40%, improving economic feasibility, particularly in colder regions. The analysis focuses exclusively on energy and emissions-related costs and does not explicitly model capital investment or levelized cost metrics. Full article

Thailand’s 2024 excise tax reform aimed to stimulate the tourism economy through the elimination of import tariffs and the reduction in excise rates on wine. This study evaluates the causal economic and distributional impacts of this policy intervention. The analysis employs a quasi-experimental Doubly Robust Difference-in-Differences (DR-DiD) estimator on a stratified cluster sample to isolate shifts in consumption expenditure, volume, and net ethanol intake. Results indicate a null effect for the general population, which confirms that the price floor remained prohibitive for median earners despite the tax reduction. The top income quintile conversely exhibited a statistically significant “additive premiumization” effect characterized by a surge in wine quantity without the substitution of other beverage categories. This behavioral shift generated a substantial Net Economic Loss driven by the divergence between foregone tax revenue and projected human capital productivity losses. The policy consequently functioned as a regressive fiscal transfer to the elite and created severe allocative inefficiency. These findings suggest that ad valorem tax incentives for luxury goods in emerging markets generate deadweight loss. Future policy strategies should therefore prioritize specific volumetric taxation to align fiscal incentives with public health objectives. Full article

Energy Communities (ECs) have emerged as central legal instruments for decentralized renewable energy deployment across Europe; however, their long-term viability depends critically on financial sustainability mechanisms that remain inadequately understood. This study examines the economic foundations of ECs through a narrative literature review of revenue generation, cost allocation, and the capital mobilization pathways in three representative European markets (Germany, Spain, and Italy). A structured Scopus database search identified 280 peer-reviewed studies published between 2019 and 2025. Following systematic screening, 89 articles were selected for analysis through bibliometric mapping in R (Biblioshiny) and qualitative synthesis in NVivo. The analysis reveals that stable feed-in tariffs, tax incentives, and self-consumption remuneration schemes form the primary revenue mechanisms, while cost management effectiveness varies substantially across countries due to differing grid-charge structures and administrative frameworks. Capital access remains constrained for smaller communities despite hybrid financing innovations combining public grants, cooperative equity, and emerging crowdfunding mechanisms. Regulatory heterogeneity, high upfront investment requirements, and limited institutional credit availability continue to impede scalability. The findings emphasize that achieving widespread EC adoption requires harmonized policy frameworks, transparent cost-sharing arrangements, and diversified investment instruments that align local participation with national decarbonization objectives while ensuring equitable access across diverse socio-economic contexts. Full article

This study proposes a dual-shield framework to elucidate the capital structure dynamics within China’s policy-intensive real estate sector. We delineate a coercive policy shield wherein binding regulations supersede market-based incentives, and a proactive sustainability shield which recognizes how superior environmental performance can lead to reduced financing costs. Analyzing data from Chinese A-share firms during 2003 to 2021, we present robust evidence that supports both mechanisms. Notably, the effect of the debt tax shield is diminished in real estate sectors, underscoring the policy shield’s ability to negate traditional financial incentives. In addition, the macroprudential tightening implemented in 2017 has disproportionately disrupted leverage adjustments, especially among firms subsequently affected by the “Three Red Lines” policy. Rigorous quasi-experimental analyses additionally illustrate that green bond issuers experience a significant and enduring reduction in their cost of debt, thereby establishing a substantive sustainability shield. Our findings contribute to the literature on sustainable finance by conceptualizing approaches that extend beyond tax shields, effectively integrating regulatory and market forces to align the capital structures with objectives for sustainable transition. Full article

Within the framework of the carbon market mechanism, corporate investments to secure forestry carbon credits play a pivotal role in mobilizing social capital for ecological construction and realizing the value of ecosystem services. This study integrates information decision theory and Bayesian network analysis to simulate corporate investment decision-making for forestry carbon sequestration within China’s carbon market. Through this approach, we explore the decision-making mechanisms behind corporate investments in forestry carbon sequestration and conduct decision simulations. The findings reveal several key insights: (1) External factors, including tax incentives, consumer preference for low-carbon products, and societal environmental awareness, exert a significant impact on the valuation of forestry carbon sequestration investments. Internally, the challenge posed by technological costs in achieving emission reductions significantly influences the evaluation of forestry carbon sequestration investments. (2) Investment value judgments are shaped by the nature of the decision-making problem, which inherently involves a synergistic relationship. (3) Corporations recognize the importance of forestry carbon sequestration in reducing the costs of emission reduction, formulating low-carbon development plans, expanding investment opportunities, and enhancing the quality of forestry carbon sequestration. (4) The collective value judgment of corporates regarding forestry carbon sequestration in terms of cost reduction for emission reduction, low-carbon development planning, investment opportunity expansion, and corporate image enhancement significantly influences their investment decisions in forestry carbon sequestration. (5) Corporate investment decisions exhibit a strong preference for market-based pricing and risk-sharing mechanisms. Consequently, enhancing the carbon information disclosure system and the carbon market trading mechanism, as well as establishing price protection and income stabilization expectations for forestry carbon sequestration, can encourage corporates to make investments in this area. This not only aids in the green, low-carbon transformation of businesses but also addresses the challenge of positive externalities associated with forestry carbon sequestration through market-oriented solutions. Full article

Tax incentives play a crucial role in enhancing firm dynamism and aiding a nation in becoming a significant trade power. Drawing on data from the Annual Survey of Industrial Firms Database and the Chinese Customs Database for the period 2010 to 2013, this study employs a difference-in-differences approach to assess the impact of China’s transition from a business tax to a value-added tax (RBTVAT) on the export diversification of manufacturing firms. The findings indicate that the tax reform significantly decreases the number of export categories, increases export value, and elevates the export unit price for manufacturing firms. Specifically, by promoting specialized production and encouraging the manufacture of products with higher export tax rebate rates, the reforms have led firms to narrow their range of export categories. This effect is particularly pronounced among firms experiencing higher financing constraints, lower profitability, weaker innovation capabilities, and larger size. Furthermore, a consistent negative impact is observed for both state-owned and non-state-owned enterprises. These results provide novel insights and empirical evidence for understanding the relationship between tax reform and export diversification. Full article

This study examines the relationship between publicly traded Thai companies’ ESG performance and value as well as how board structures moderate this. In the Thai context, there is a limited number of empirical studies that employ the board of directors’ structure as a moderating variable, despite the importance of the board’s role in corporate management. This study aims to address this research gap. A panel GMM regression model is employed to address endogeneity issues, and our sample consists of 94 Thai listed companies with available ESG data from 2019 to 2023, resulting in 470 firm-year observations. The results demonstrate positive direct impact of ESG score on corporate value. In addition, board independence is positively significant and relates to company value. However, this research found negative moderating effect of board independence on the relationship between ESG score and corporate value. Furthermore, the empirical results indicate that board size does not have a significant direct and moderate impact on corporate value. Moreover, firm size and leverage are not related to corporate value. The results confirm the agency theory and stakeholder theory. Based on the findings, company executives should integrate ESG practices into their strategic plans. Moreover, regulatory authorities should promote expertise diversity and independence within the board and promote ESG standards and disclosure, as well as offer tax incentives for companies with outstanding ESG. This would enable investors to consider ESG performance in their decision-making. This study represents a new contribution to literature, especially in the context of emerging markets. Full article

Driven by the energy transition within the framework of the United Nations Framework Convention on Climate Change, second-generation (2G) ethanol stands out as a technical and sustainable alternative to fossil fuels. Although first-generation ethanol, produced from saccharine and starchy feedstocks, represents an advance in mitigating emissions, its expansion is limited by competition with areas destined for food production. In this context, 2G ethanol, obtained from residual lignocellulosic biomass, emerges as a strategic route for diversifying and expanding the renewable energy matrix. Thus, this work discusses the current state of 2G ethanol technology based on the gradual growth in production and the consolidation of this route over the last few years. Industrial second-generation ethanol plants operating around the world demonstrate the high potential of agricultural waste as a raw material, particularly corn straw in the United States, which offers a lower cost and significant yield in the production of this biofuel. Similarly, in Brazil, sugarcane by-products, especially bagasse and straw, are consolidating as the main sources for 2G ethanol, integrated into the biorefinery concept and the valorization of by-products obtained during the 2G ethanol production process. However, despite the wide availability of lignocellulosic biomass and its high productive potential, the consolidation of 2G ethanol is still conditioned by technical and economic challenges, especially the high costs associated with pretreatment stages and enzymatic cocktails, as well as the formation of inhibitory compounds that compromise the efficiency of the process. Genetic engineering plays a particularly important role in the development of microorganisms to produce more efficient enzymatic cocktails and to ferment hexoses and pentoses (C₆ and C₅ sugars) into ethanol. In this scenario, not only are technological limitations important but also public policies and tax incentives, combined with the integration of the biorefinery concept and the valorization of (by)products, which prove fundamental to reducing costs, increasing process efficiency, and ensuring the economic viability and sustainability of second-generation ethanol. Full article

The growing concentration of innovation-driven economic activity in core metropolitan areas threatens the sustainable development of peripheral regions. Conventional aid programs are giving way to place-based strategies that harness endogenous regional resources. Yet most computable general-equilibrium (CGE) models—the standard tools for policy appraisal—operate at the national scale and generally treat regions as passive recipients. This study adopts the regional system (RS) approach and contributes a step towards its practical implementation with the introduction of a Regional Economic Development (RED) model—a CGE framework that embeds the region as an explicit behavioral block inside a national system. The model comprises four interlinked modules and makes a key distinction, often overlooked in the RS literature, between a region’s domestic product (output generated within the territory) and its regional product (income earned by resident labor and capital, irrespective of where those factors are employed). This distinction captures income leakages and interregional spill-overs—factors that are critical for peripheral economies. Scenario analysis couples exogenous policy levers—tax incentives, infrastructure upgrades, human-capital investment—with endogenous outcomes such as employment, income, and structural change. By disentangling internal production capacity from external income opportunities, the RED model lets policymakers compare strategies that prioritize local output with those that maximize household welfare. Iterative simulations reveal feasible development targets, the policy mixes required to achieve them, and the structural implications of each trajectory. Full article

Amidst Portugal’s ongoing housing crisis, particularly pronounced in the Lisbon Metropolitan Area, thousands of residential units remain vacant. This article investigates why property owners often refrain from placing these homes on the rental market, despite high demand and rising prices. Drawing on empirical data from successive editions of the ALP (Lisbon Landlords Association) Barometer and framed by the literature on housing financialization, institutional trust, and patrimonial ownership cultures, the study shows that vacancy is not merely a result of speculation or neglect. Rather, it emerges as a rational response to a complex interplay of regulatory instability, legal mistrust, and deeply rooted socio-cultural norms. Landlords act not only as economic agents but also as custodians of family heritage, navigating uncertainty in a legal and symbolic environment increasingly perceived as hostile. The article argues that mobilizing Lisbon’s empty housing stock requires more than tax incentives or coercive measures. It demands rebuilding trust, ensuring legal predictability, and acknowledging the cultural meanings that shape property decisions. Policy recommendations include stabilizing rental legislation and designing culturally sensitive engagement strategies for small landlords. Full article

Korea’s industrial structure faces a critical challenge: the proportion of high CO₂ emitting industries in the GDP decreased during the 2000–2021 period, whereas their contribution to national CO₂ emissions increased. This study evaluates the impact of the government’s comprehensive support system—encompassing seven areas: tax incentives, general funding, financial support, human resource development, technical support, certification, and public purchase—on technological innovation in high CO₂ emitting industries. Using the Probit model on data from the Korea Innovation Survey 2022 (2019–2021) and a financial statement database of firms, we analyzed firms in high CO₂ emitting industries. The findings reveal that among the various forms of government support, human resources development ranks highest in its positive impact on innovation, followed by tax incentives and general funding. The results suggest that effective climate policy must shift to prioritize targeted technical and knowledge-based assistance to overcome the specific innovation prevalent in high CO₂ emitting industries. Full article

This study examines the determinants of environmental, social, and governance (ESG) performance among Chinese financial institutions, with particular emphasis on community engagement, firm size, and ownership structure as drivers of ESG performance and their contribution to the Sustainable Development Goals (SDGs). Utilizing ESG ratings from CSRHub and annual reports from 107 financial companies spanning 2022–2024, hierarchical regression analyses demonstrate that community engagement significantly predicts ESG performance (β = 0.816, p < 0.001), explaining 67.7% of the variance in ESG ratings. Conversely, the firm (β = 5.687 × 10⁻⁶, p > 0.05) and the ownership structure (β = 1.35, p > 0.05) exhibit no statistically significant effect. Robustness evaluations, concerning bootstrapping methodologies and calculations of heteroscedasticity-consistent standard errors, check these findings. The cross-sectional design limits causal inference. Longitudinal studies would allow deeper exploration of temporal dynamics. The results specify that community engagement acts as the primary factor affecting ESG performance within Chinese financial institutions, whereas firm size and ownership structure exercise insignificant influence. Financial institutions should prioritize substantive, sustained community initiatives rather than relying on organizational scale or state affiliation. For policymakers, the findings suggest that incentive mechanisms (e.g., tax credits or green-finance subsidies) should reward verifiable community-impact outcomes rather than firm size or state ownership, which do not reliably predict superior ESG performance. Full article