Green taxation and the SDGs: the influence of higher education on sustainability – a systematic review

The first Conference of the Parties associated with the United Nations Framework Convention on Climate Change (UNFCCC) was held in Berlin, Germany, in 1995. The primary objective of the UNFCCC is to prevent any further human interference that could potentially be harmful to the climate system. From its inception, it was recognised that such interventions have resulted in climate change, which has subsequently led to a re-evaluation of how the global community interacts with the environment (Proskuryakova, 2022).

Carbon dioxide (CO₂) emissions are recognised as a significant contributor to climate change (Dias and Rocha, 2023), with levels having increased significantly since the Industrial Revolution and continuing to rise alongside economic development, particularly in developed countries (Farooq et al., 2023). In this sense, the International Community adopted the 2030 Agenda Agreement in September 2015 ^[1], marking an important milestone in the global effort to fight climate change and promote SD.

Thus, the 2030 Agenda, comprising 17 Sustainable Development Goals (SDGs), represents a crucial instrument in this endeavour. One of the key objectives is to progressively mitigate CO₂ emissions, as well as other greenhouse gas emission worldwide, which will require several changes to be made by both developed and developing countries alike. However, it is acknowledged that the countries that contribute the least to CO₂ emissions will be the most reliant on fossil fuels for economic growth, as well as experiencing the most adverse effects of climate change, making it challenging to achieve the set targets (Perot, 2023). Considering the necessity for all countries to be involved and committed to the proposed targets, the UNFCCC has advocated for the “Just Transition” [²], a policy framework designed to support regions that might be affected by socio-economic changes.

Faced with the challenge of climate change and the necessity to rehabilitate the environment following the SDGs, governments have been implementing a range of measures to protect the environment and modify the consumption patterns of their citizens. The first author of this field of study, Arthur Cecil Pigou (1920) proposed that a tax be levied on units of pollution, which has become known as the “Pigouvian Tax” model (based on the “polluter pays principle”, which is designed to the change consumer behaviour regarding natural sources) (Dias and Rocha, 2023). In this vein, it was in 1970 that green taxes first came to be discussed in this context. Green taxation (also referred to in the international literature as environmental taxation, environmental law and environmental policy) represents an important tool for governments to meet the challenges of fighting climate change and encompasses a range of taxes, including those on energy, transport, pollution and resources. It also incorporates green tax incentives (Andıç, 2023). In addition to green taxes, green tax incentives represent a crucial instrument in the effort to reduce tax burdens and promote sustainable consumption patterns with a direct influence on environmental protection (Dinis et al., 2023). This could include grants, subsidies and tax deductions (Perot, 2023). To guarantee environmental sustainability and to discourage polluting activities, green taxation is indispensable according to Farooq et al. (2023).

Considering these considerations, it is equally important to sensitise and disseminate knowledge of these subjects to young people, particularly those engaged in higher education (HE), who may have decision-making positions in the future. Therefore, regarding the role of Higher Education Institutions (HEIs), the literature emphasizes two significant functions: promoting competencies for values such as gender equality, human rights, peace, non-violence and SD, in line with SDG 4.7. Hence, the importance of HEIs in advancing the SDGs is supported by evidence, with HEIs contributing to the SDGs through a range of functions including teaching, research and public service (McCowan, 2023). Nevertheless, its principal objective is to instil sustainability principles in the development of the skills that future professionals will require in their chosen field, for instance, the skills required for the development of renewable energies in the case of civil engineers.

For this primary objective to be achieved, HEIs must have their programmes aligned with the principles of the SDGs. This alignment was already in place in the years following the adoption of the 2030 Agenda, a fact that distinguishes this period from past practices within the HEI sector (McCowan, 2023). In this scope, this research intends to answer the following research question:

To respond to the aforementioned research question, it is imperative to acknowledge that there are several factors that may be determinative for the implementation of green taxation education in HE, with a regard to achieving the SDGs. According to Sarpong et al. (2023) and Santos et al. (2024), who argue that the implementation of environmental tax policies is crucial to promoting ecological efficiency, with fundamental importance being attributed to environmental education in achieving this objective, the following research hypothesis is proposed:

In the view of De Boe et al. (2025) and Santos et al. (2024), who posit that green taxation is an effective instrument for promoting changes in environmental behaviour, with HE being fundamental to raising awareness, the following research hypothesis is proposed:

Finally, Monteiro et al. (2024) and Sun et al. (2023) posit that HEIs play a pivotal role in social responsibility through the adoption of environmental fiscal policies to achieve the SDGs of the 2030 Agenda. According to these authors, the following research hypothesis is proposed:

Thus, the objective of the present study is twofold: firstly, to investigate the role of environmental fiscal policies in the implementation of the SDGs, and secondly, to analyse the influence of HE in green taxation on the promotion of sustainability. To achieve this objective, given the exploratory nature of the study, the principal research method used was a systematic literature review conducted based on bibliographic research, following the procedures established in the PRISMA guidelines, which enables the evaluation of the issues under investigation. Following this introduction, Section 2 is devoted to a review of the literature. Section 3 describes the research methodology, and Section 4 presents and analyses the results. Finally, in Section 5, the main conclusions of the study are presented.

Green taxation has been implemented by states as a policy to achieve the goals outlined in the 2030 Agenda. The adoption of this policy presupposes a change in environmentally damaging behaviour, such as the transition from fossil fuels to renewable energy resources (Nchofoung et al., 2023). Although this measure may be perceived as an increased financial burden and a potential competitive disadvantage for certain sectors, it also presents an opportunity for investment in new technologies and resources.

As Sarpong et al. (2023) asserted, the implementation of environmental fiscal policies is intended to promote ecological and economic efficiency, while simultaneously reducing the consumption of natural resources. The overarching objective of these policies is to fight climate change by curbing CO₂ emissions, water pollution and disposal of wastewater, among others (Rabhi et al., 2024). In addition to fighting climate change, the objective of green taxation is to foster behavioural change, namely, to promote environmental responsibility among individuals, which is regarded as a pivotal aspect of SD. Hence, as the literature emphasises, the concept of environmental responsibility is regarded as a complex and multifaceted one. It encompasses not only the economic aspects of environmental relations and compliance with environmental legislation but also behaviours aimed at the preservation of the natural environment (Vasilyeva et al., 2023). Therefore, green taxation encourages the adoption of pro-environmental behaviour, including the avoidance of health risks, the utilisation of clean energy technology and the reduction of waste.

According to Farooq et al. (2023), low environmental tax rates tend to have little influence on the economy and energy consumption, arguing that to reduce CO₂ emissions, states should apply an average level of environmental tax rates. Also, considering the different types of industries, such as iron, cement, glass and other non-electrical industries that are harmful to the environment, states should consider different tax rates for different types of businesses. Indeed, several studies have concentrated their research efforts on CO₂ emissions, with emphasis on the influence of carbon taxes and its correlation with environmental factors (Wolde-Rufael and Mulat-Weldemeskel, 2021; Pretis, 2022; Wang and Ma, 2022). Nevertheless, within the context of green taxation, there are additional taxes that are designed to advance SD in alignment with the SDGs established by the 2030 Agenda. In this regard, the authors agree with the position put forth by Nikiforov et al. (2024), who posits that the implementation of green taxation at the state level can enhance the efficiency of market operations. In addition, the incorporation of green tax incentives, stated-funded investment in green infrastructure, e.g. railways, sanitation, energy and public transport, through the provision of tax preferences, and the elimination of environmentally harmful subsidies can facilitate the establishment of fiscal space that can be leveraged to incentivise pro-environmental behaviour.

As previously mentioned, green taxation encompasses different types of taxes that contribute to sustainability and the SDGs beyond carbon taxes. As argued by Carvalho et al. (2024), with the Portuguese case study as a point of reference, governmental green policies have been directed towards integrating energy efficiency practices and green construction, to enhance thermal quality, reduce energy consumption and, consequently, lower CO₂ emissions. Thus, green tax incentives have been implemented for the urban rehabilitation of buildings and the promotion of sustainable practices in the construction sector. These incentives are particularly relevant regarding Value Added Tax, Municipal Property Tax, Municipal Property Transfer Tax, Personal Income Tax and Corporate Income Tax (Carvalho et al., 2024).

Moreover, plastic pollution is a significant global issue, with a detrimental influence on wildlife and human health. This has led to the introduction of regulations aimed at reducing plastic pollution in 127 countries, with 90 of these countries having banned single-use plastic items, such as plastic bags and straws (United Nations Environment Programme, 2018). As an illustrative case in point, in 2018 Samoa enacted a national law banning the import, manufacture, export, sale and distribution of plastic bags and straws, which came into force on 30 January 2019. Meanwhile, other countries, including Portugal, Denmark, Ireland and Tunisia, implemented a policy of taxing plastic bags (Environmental Rule of Law: Tracking Progress and Charting Future Directions, 2023). In 2019, Directive (EU) 2019/904 was approved at the European Union (EU) level, resulting in a revision of the regulations about plastic products. In the case of Portugal, for instance, the Directive was transposed by Decree-Law (DL) no. 78/2021, of 24 September, which came into force on 1 November of that year, to ban the placing on the market and make available single-use plastic products. It introduced measures to reduce their consumption, to conduct a further assessment by 31 December 2025. Furthermore, article 7, under the heading “research and development of sustainable alternatives”, of the DL provides for the stimulation of research and development of sustainable alternative products. This is to be achieved based on the results obtained and the government’s assessment of the implementation of incentives for their co-design, if they contribute to the replacement of single-use plastic products (Decree-Law No. 78/2021, 24 September 2021).

In addition, the current global food system has a significant environmental influence, with a third of greenhouse gas emissions generated by the sector, combined with large amounts of water and land consumed. Furthermore, the biodiversity loss associated with agriculture represents an additional environmental concern. Considering these issues, it is important to consider the potential of environmental fiscal policies, green taxes and green fiscal incentives, to achieve more sustainable consumption patterns, promote changes in diets and reduce food waste, despite the challenges posed by the complexity and multidimensionality of the phenomenon (Ran et al., 2024).

It is critical to emphasise that the fundamental objective of green taxation should not be to generate revenue, but rather the allocation of funds towards investments in environmentally focused technology, which are essential for the advancement of sustainable economic growth. As Sun et al. (2023) emphasises, there is a positive correlation between green taxation, green innovation and renewable energies and green total factor productivity, which is essential for achieving the SDGs. Also, he asserts that green innovation initiatives undertaken by states, financed via taxation and subsidy mechanisms, must be viewed as fundamental instruments for both consumers and businesses in pursuit of SD

Civic morality, as defined by the sense of duty to fulfil social rules, norms and involvement in society’s affairs for the good of all (Lim and Moon, 2022), is a concept that extends to the context of taxation. In this regard, the payment of taxes is an obligation for the citizen-taxpayer, reflecting a social and ethical duty for all members of society to contribute to the financial costs associated with the functioning of the state (Pereira and Cruz, 2024). Furthermore, Pereira and Cruz (2024) argued that taxation plays a role in achieving societal goals, objectives, values, attitudes and behaviours. This emphasises the moral obligation of citizens to engage in the exercise of their civic duty, which includes awareness of global taxation. In this vein, it is evident that education plays a pivotal role in fostering citizen’s tax awareness.

Thus, the authors can emphasise the importance of education for the fiscal awareness of individuals, which cannot be dissociated from environmental education, which ensures the identification of the causes of environmental issues and provides an understanding of environmental fiscal policies. According to Monteiro et al. (2024), HEIs play a fundamental role in the transformation of social responsibility and influence behaviour through economic, social and cultural orientations. Therefore, to transfer knowledge on green taxation and how it contributes to the SDGs, HE, which is universal and applicable to all countries, is crucial.

Given the exploratory nature of this study, a systematic literature review based on bibliographic research was conducted, and procedures from the PRISMA guideline were followed (Page et al., 2022), with four stages (identification, selection, eligibility and inclusion), with the necessary adaptations for this study. A search was conducted on 5 December 2024 based on scientific documents published in quality journals indexed in the Scopus database to identify the articles that would be studied in this research. This may be regarded as a multidisciplinary database, given its indexing of a broad range of scientific literature from several academic domains (Ramirez and Lizarazo, 2025), it is also important note that the repository contains the largest collection of peer-reviewed documents (Abad-Segura and González-Zamar, 2021). Consequently, the risk of excluding articles of greater relevance is minimised. To ensure a comprehensive and systematic approach to the selection process, keywords were used to search across all fields, including, but not limited to, “article title, abstract, keywords”, “authors”, “affiliation”, “language” and “ISSN”. These keywords included “tax policies”, “higher education” and “sustainability”. No filters were applied concerning the year of publication. However, the authors limited their selection to articles that had reached the final stage of publication and were written in the English language. A total of 202 articles were submitted for analysis; 11 were excluded because they were not at the final stage of publication, which resulted in a total of 191 articles being included in the study. The articles identified were subjected to a process of evaluation based on the reading and analysis of their abstracts, with the authors classifying them into three distinct thematic areas for further analysis. The exclusion of 111 articles resulted from the application of the selection criteria of classification in the thematic areas of “Green Taxation”, “Higher Education” and “SDGs and Sustainability”. In addition to the selection criteria that were adopted, the “out of scope” and/or “out of search criteria” were applied throughout the process of reading and analysing the abstracts, as well as the research question. The selection of articles for inclusion or exclusion was contingent upon their conformity with the criteria adopted for the study. This process resulted in the final selection of 80articles for analysis. The period under consideration is 2004–2024 (to 5 December 2024). Figure 1 illustrates the process of inclusion.

In consideration of the thematic areas of this study and the methodology of categorising the analysed articles into three sub-themes, the authors present and discuss the findings to conclude on the role of environmental fiscal policies in the implementation of the SDGs. The authors consider the significant application of environmental fiscal policies as a governmental instrument (Hua, 2024), and the influence of their teaching in HE on green taxation to promote sustainability, concerning its role in the training of future professionals (Dziubaniuk et al., 2024).

Several studies have been conducted on green taxation. Nevertheless, an analysis of the available literature from the sample reveals that most of these studies concentrate on the effects of carbon taxes. The studies presented in Tables 1–3 are representatives of the samples selected for analysis, according to their year of publication, from most recent to oldest. It is the intention of the authors of the present article, to evaluate the results of the remaining articles in future research. In addition, in Tables 1–3, the country considered was the country of affiliation of the respective authors of the articles under study.

From the authors’ analysis, it can be observed that green taxation is regarded as a pivotal instrument for ensuring environmentally beneficial outcomes, as evidenced in Table 1. This is particularly evident in its capacity to mitigate CO₂ emissions.

Thus, the studies presented demonstrate that a combination of regional carbon taxes, targeted tax incentives, subsidies for cleaner technologies and behavioural measures aimed at influencing consumption patterns is recommended to reduce inequalities and mitigate CO₂ emissions. Empirical evidence demonstrates that the implementation of sustainable building regulations has resulted in quantifiable reductions in emissions, which serves to emphasise the efficacy of regulatory instruments. Moreover, the implementation of environmental tax incentives is identified as a necessary mechanism to reinforce long-term sustainability goals.

In terms of HE, the focus is on training young people, future professionals who will contribute to the common good of society, the SD, as emphasised in the SDGs, particularly SDG 4 – Quality Education (inclusive and quality education for all) and several studies suggest.

The findings presented in Table 2, as well as the authors’ critical analysis, HE has a pivotal role to play regarding the teaching of green taxation, promotion of understanding (thereby fostering greater acceptance) of green taxes and environmental tax incentives for contributing to sustainable development.

It is asserted that, according to Leyva-Hernández and Terán-Bustamante (2024), citizenship education performs a foundational role in the promotion of awareness concerning ecological consequences of human activities and is consequently regarded as a pivotal instrument for the mitigation of ecological degradation. This assumption forms the basis of the study of Xie et al. (2023), which evaluates the long-term positive results of HE policies that support SD, emphasising the need to integrate the sustainability agenda into curricula. The argument is made that a reorientation of education towards sustainability is essential to raise awareness, not only among students but also within academic communities more broadly (Xie et al., 2023).

According Tessitore (2023), it is imperative to emphasise the significance of providing lecturers with more in-depth training, as they are pivotal in transmitting sustainability values and practices. In the absence of adequate professional development in this domain, endeavours to integrate sustainability into HE risk remaining superficial or inconsistent (Tessitore, 2023).

Finally, Masturin et al.’s (2022) study posits the necessity of the systematic incorporation of ecological learning into educational curricula for sustainable development, as part of a comprehensive approach that links education for sustainability with broader environmental and social development strategies. This is, the integration of this module is designed to equip graduates with the knowledge, skills and values necessary to tackle contemporary environmental challenges, both in their professional practice and in civic life.

In consideration of the research question originally formulated: “Do environmental fiscal policies and green taxation influence teaching in Higher Education (HE) on achieving the Sustainable Development Goals (SDGs)?”, the analysis of the reviewed studies suggests that:

• education in green taxation is of significant importance in ensuring that individuals are aware of the tax instruments that promote environmental sustainability (Al-Rawi et al., 2021; Zahra, Khan and Nouman, 2022; Hanif et al., 2024; Yue et al., 2024);

• HE has been identified as a key tool in encouraging citizen participation in the global effort to fight climate change and reduce environmental impact (Masturin et al., 2022; Tessitore, 2023; Xie et al., 2023; Leyva-Hernández and Terán-Bustamante, 2024); and

• environmental tax policies can influence HE, thereby facilitating the achievement of SDGs (Masturin et al., 2022).

In consideration of the findings obtained, and with respect to the research hypotheses initially formulated (H1, H2 and H3) on the several factors that may be pivotal for the implementation of green taxation in HE to achieve the SDGs, it is asserted that these hypotheses have been validated.

The authors’ critical analysis of the results presented in Table 3 indicates that the SDGs and the concept of sustainability have implications for three key areas: social dimensions, financial performance and environmental issues.

According to Li et al. (2024), an elevated degree of education amongst entrepreneurs has been demonstrated to be indicative of a propensity towards the pursuit of financial sustainability. Consequently, policymakers and social enterprise certification systems should incorporate sustainability objectives into their criteria, thereby directing resources towards the achievement of the SDGs. Therefore, the provision of training and advisory services for social entrepreneurs should be adapted to align with the unique paths and experiences of each individual entrepreneur (Li et al., 2024).

As Lazar et al. (2022) argued in the study analysing the role of organisational culture and normative commitment in promoting supply chain sustainability, a substantial organisational culture reinforces normative commitment, and, in addition, together demonstrate a people-centred strategy that promotes sustainability throughout supply chain, particularly in the context of SDG 8 (decent work and economic growth) (Lazar et al., 2022).

Financial performance is generally measured using indicators such as Return on Assets, Return on Equity, Tobin’s Q and net profit margin. However, since 2014, environmental cost metrics have gained prominence (Muhmad and Muhamad, 2021).

Muhmad and Muhamad’s (2021) research indicates that sustainability practices contribute to improving financial performance, reinforcing the strategic value of integrating the SDGs into corporate agendas, and highlighting the importance of multidimensional approaches to sustainability. Furthermore, Muhmad and Muhamad’s (2021) study underscores the need for further research in developing and underdeveloped economies. With regard to environmental results, Kluza et al. (2021) concluded that the implementation of the SDGs contributes significantly to reducing greenhouse gas emissions in European countries. The analysis underscores that certain objectives exert direct impact, as evidenced by SDG 7 (affordable and clean energy) and SDG 5 (gender equality). Conversely, the SDGs of quality education (SDG 4) and partnerships for the implementation of the goals (SDG 17) act as indirect incentives for environmental policies (Kluza et al., 2021). This study emphasises the necessity of integrated public policy management, which considers direct and indirect interactions between SDGs with a view to promoting sustainability and resilience in environmental strategies.

Essentially, the pedagogical effectiveness of this subject in HE remains an under-researched area, suggesting a lack of consolidated evidence in this field, which could result in a limitation of countries’ proficiency in the application of this tool to achieve the SDGs, such as the imperative for the empowerment of the future generation of knowledge, providing them with the capacity to tackle complex issues related to the green transition.

The study aimed to show the importance of environmental fiscal policies for SD and, consequently, for the pursuit of the SDGs targets. As previously noted in the studies analysed, the prevailing focus of the literature is on carbon taxes and their implications, as well as on sustainability in general at the HE level. Accordingly, the present study explores the intersection between green tax policies and their integration into HE curricula, with a particular focus on the teaching of green taxation. The purpose of this study is to make a valuable contribution to the fundamental role of HE in promoting pro-environmental behaviour, as well as preparing future decision-makers, from a preventive and pedagogical perspective, to achieve the SDGs of 2030 Agenda. The green taxes with the greatest influence are those affecting CO₂ emissions. However, there are other taxes and environmental incentives that also contribute to improving the environment, such as environmental incentives for the construction and renovation of buildings, which also contribute significantly to CO₂ emissions (Dinis, 2024). To reduce environmental damage, it is necessary to implement comprehensible strategies, namely, the application of progressive tax rates, as increasing the tax base can contribute to reducing the ecological footprint. Therefore, green taxes incentivise behaviours that reduce greenhouse gas emissions in the achievement of the SDGs. On the other hand, the findings of this analysis, combined with the main conclusions of the previous studies reviewed, suggest that HE is a fundamental tool for sustainability by teaching young students about green taxes and raising their awareness of the purpose of environmental fiscal policies and their contribution to SD, as substantiated by Bui et al.’s (2024) study. This is, HEIs transmit knowledge and promote research on climate change, which can exert pressure on states to find solutions and changes, as well as promote the development of innovative solutions to environmental damage. To achieve the SD, it is necessary to focus on the mission of HEIs. In addition, this suggests a contribution to the nexus between sustainability practices, organisational culture and SDGs. The emphasis is placed on the impact of these practices on business and environmental performance. Consequently, the implementation of green taxation is identified as a significant measure in promoting environmental responsibility and civic morality. Education is recognised as a pivotal tool in fostering political awareness and encouraging individual action, thereby facilitating the transition towards a sustainable and equitable future. Thus, this will result in enhanced achievements, particularly in the context of high levels of education for future generations of entrepreneurs. This is to be complemented by public policies that favour financial sustainability and alignment with the SDGs. Several SDGs affect environmental goals, however, the authors highlight SDG 4 (quality education) associated with SDG 17 (partnerships for goals) to promote environmental fiscal policies and support economic growth.

In conclusion, according to the findings of the present study, and in accordance with the formulated research question, it can be asserted that environmental fiscal policies and green taxation play a pivotal role in achieving the SDGs. Furthermore, it is suggested that the integration of green taxation teaching into HE curricula is conductive to the dissemination of the knowledge necessary for its practical implementation at both the corporate and individual levels. This integration is expected to yield positive results for a sustainable environmental and economic future.

Indeed, the competencies of prospective decision-makers are determined by their educational background, with HEIs playing a pivotal role in the green transition by providing training in this domain. This enables future professionals to develop the skills essential for the design, implementation and evaluation of green tax instruments, which are fundamental for the promotion of sustainable development and have a significant social impact, with possible direct consequences for society, as well as for countries’ ability to comply with the SDGs.

The authors suggest further research on the influence of these policies on the achievement of SGDs, namely, that future studies should consider the influence of other forms of green taxation as well as environmental tax incentives on this issue. On the other hand, future research on a wider range of countries is suggested for the analysis of green taxation, as well as for the comparison of environmental practices between developed and developing countries, particularly concerning HEIs curricula on these topics. Indeed, energy sources are an intrinsic aspect of a modern economy and are frequently disregarded in conventional economies, where fossil energy sources predominate, due to the costs of installing infrastructure for renewable energy sources, as well as their impact on production capacity costs, creating a complex interaction between environmental concerns, economic growth and policies (Mehmood et al., 2024).

Finally, the present review has been designed to serve as a reference point for researchers, policymakers and government bodies of HEIs. Its aim is twofold: firstly, to highlight the importance of teaching green taxation in HE for changes in environmentally friendly behaviours; and secondly, to validate the importance of implementing green taxation teaching across HEI curricula to achieve the SDGs and a sustainable future.