This project aims to generate new insights and specific recommendations for designing sustainable taxation policies. Our interdisciplinary approach follows a two-step process: First, we aim to gather empirical evidence on management decision-making and the real-world impacts of sustainable tax incentives and disincentives in a Finnish setting. Understanding decision-makers’ responses to tax (dis)incentives is crucial for enabling policymakers to develop more targeted and effective tax policies. Effective tax policies achieve their objectives while minimizing collateral damage, such as economic distortions or misallocated/unearned tax revenue. Building on these insights, we plan to formulate policy recommendations for legislators to create an effective tax legislation promoting sustainable business development in the second part of the project.

2024