The role of sustainability accounting in activating the green tax: An exploratory study

Abstract

The analysis was meant to determine the contribution of sustainability accounting towards the activation of the green tax. It used a descriptive-analytical approach on a sample of accounting scholars in Iraqi universities using a questionnaire. The research was able to come to a number of conclusions and they include that sustainability accounting, in its three dimensions, has a statistically significant effect on the green tax as perceived by the participants. The findings also indicated that there was a difference in the scope of the impact the dimensions of sustainability accounting have on the green tax as felt by the participants. Further, the researchers established no statistically significant differences in the influence of sustainability accounting on the green tax due to the educational qualifications of the respondents, but established statistically significant differences due to the years of experience. Sustainability accounting is a contemporary tool which helps in sustaining the environmental policies, the lead one among them being the green tax. It will give precise and transparent details concerning the environmental impact of economic activities that increase tax equity. It is also useful in leading the economy towards sustainability and enhancing environmental performance of institutions. With no accounting system that accurately mirrors environmental reality, the success of the green tax would be impossible.