Cuadernos de Economía

ISSN : 0210-0266

Relationship between Environmental Tax and Production Cost

  • Amjad Subhi Sahib , Department of Banking and Financial Sciences, Imam Al-Kadhum College, Wassit University, Iraq
  • Zinah khudhair mhmood , Administration and Economics College, Wassit University, Iraq
  • Jasim Hadi Farag , Business Management, University Kut College, Kut / Wasit


Environmental taxes; Environmental costs; Production cost; Environment protection; Environmental Pollution ,


Some countries may struggle to levy an environmental tax. Because most polluting projects are industrial, it is critical to match the tax burden to these projects' capability to avoid forcing them to cease, lay off people, or restrict production. We focused our research on the most important methods that some countries have followed to determine the optimal point. Thus, the environmental cost and appropriate tax were determined in proportion to the environmental damage resulting from the pollution caused by those facilities without negatively impacting its production and operational capabilities. There is a link between environmental taxes and production costs. The data was collected from 49 people using AMOS 26v. It found a substantial positive correlation between the factors. The study concluded that environmental taxes alone are not sufficient to reduce pollution; an integrated set of strategies is required.