EFFECTIVENESS OF ENVIRONMENTAL TAXES IN UZBEKISTAN: EVIDENCE FROM ENERGY-INTENSIVE SECTORS
DOI:
https://doi.org/10.55640/Keywords:
Environmental taxes; environmental fiscal policy; Uzbekistan; energy intensive sectors; green economy; emissions reduction.Abstract
This paper examines the effectiveness of environmental taxation in Uzbekistan with specific emphasis on energyintensive sectors such as energy production, industry, and transport. Environmental taxes are fiscal instruments aimed at internalizing environmental externalities and incentivizing cleaner production and consumption. Despite global evidence that environmental taxes can reduce emissions and promote sustainable development, empirical assessments for Uzbekistan remain limited. Drawing on energy sector profiles, national policy documents, and regional analyses, this study evaluates how environmental fiscal policies align with Uzbekistan’s environmental and economic goals. The analysis indicates that while environmental taxes have been introduced within a broader framework of sustainable development and green economy strategies, measurable impacts on emissions reduction and energy efficiency are currently modest due to low tax rates, limited enforcement mechanisms, and structural challenges in energyintensive sectors. Nonetheless, emerging policy frameworks demonstrate potential pathways for improved outcomes if complemented by regulatory strengthening, investment in clean technology, and integration with broader environmental policy instruments. The findings can inform policymakers on optimizing environmental tax design and implementation to achieve intended environmental and economic objectives.
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