The Impact of Carbon Tax Law and Green Legal Awareness on The Paris Agreement Compliances With Green Behavior As Mediator
DOI:
https://doi.org/10.38035/jlph.v5i6.2082Keywords:
Environment Law, Behavior, tax, compliancesAbstract
Paris Agreement is a global environment legal protection that was ratified by many countries, including Indonesia. Government of Indonesia released Law No. 16 of 2016 as legal formalizes Indonesia's commitment to Paris Agreement. Indonesia also released Law No. 7 of 2021 as legal basis for carbon tax to include the pro-environment tax on Indonesia Tax Regulation. In order to evaluate the correlations between the variables, this study uses a mixed-methods technique that combines quantitative surveys with legal analysis. This normative-empirical study focuses on the effects of carbon tax laws and green legal awareness, analyzing how they affect people's green behavior and subsequent adherence to the goals of the Agreement. Normatively, the study examines the moral and legal foundations of carbon taxes as a climate change mitigation strategy, and empirically, it investigates how well these laws influence public opinion. The Simple Random Sampling method was used for collecting the data through a structured questionnaire to 120 executives in Green Certified Logistic Centre and analyzed by Smart PLS 4.0.9.6. It is argued that a key component of converting legal frameworks into concrete actions is green legal awareness, which includes knowledge and comprehension of environmental laws and rights. This study also suggests that the relationship between carbon tax law, green legal knowledge, and Paris Agreement compliance is mediated by green behavior, which includes ecologically conscious decisions and activities. By looking at this mediating function, the study hopes to shed light on how public awareness and legal frameworks might work together to encourage individual acts that support global climate goals.
References
Auzepy, A., Tönjes, E., Lenz, D., & Funk, C. (2023). Evaluating TCFD reporting—A new application of zero-shot analysis to climate-related financial disclosures. Plos one, 18(11), e0288052.
Arvidsson, S., & Dumay, J. (2022). Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice?. Business strategy and the environment, 31(3), 1091-1110.
Barrez, J. (2024). Public acceptability of carbon pricing: unravelling the impact of revenue recycling. Climate Policy, 24(10), 1323-1345.
CDP. (2021). Supply Chain Report
Citaristi, I. (2022). United Nations Environment Programme—UNEP. In The Europa directory of international organizations 2022 (pp. 193-199). Routledge.
Gaffar, M. R., Hardiyanto, N., & Rafdinal, W. (2022). Pigouvan Tax as a Support System for Economic Development of Indonesia. Accounting and Finance Studies, 2(3), 131-140.
GRI. (2021). GRI 305: Emissions 2016
Green, J. F. (2021). Beyond carbon pricing: Tax reform is climate policy. Global Policy, 12(3), 372-379.
Hartono, D., Indriyani, W., Iryani, B. S., Komarulzaman, A., Nugroho, A., & Kurniawan, R. (2023). Carbon tax, energy policy, and sustainable development in Indonesia. Sustainable Development, 31(4), 2332-2346.
Indonesia. (2016). Undang-undang (UU) No. 16 Tahun 2016. Pengesahan Paris Agreement To The United Nations Framework Convention On Climate Change
Indonesia (2021) Undang-Undang Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan (UU HPP)
La Barbera, F., & Ajzen, I. (2021). Moderating role of perceived behavioral control in the theory of planned behavior: A preregistered study. Journal of Theoretical Social Psychology, 5(1), 35-45.
Leipold, S. (2021). Transforming ecological modernization ‘from within’or perpetuating it? The circular economy as EU environmental policy narrative. Environmental politics, 30(6), 1045-1067.
Martin, A. (2023). The" Disposable Others": Settler Colonial Processes of Industrial Pollution in Cancer Alley, Louisiana, 1964-2023. The University of North Carolina at Charlotte.
McKenzie, M. (2021). Climate change education and communication in global review: Tracking progress through national submissions to the UNFCCC Secretariat. Environmental Education Research, 27(5), 631-651.
Metcalf, G. E., & Stock, J. H. (2020). Measuring the macroeconomic impact of carbon taxes. Review of Environmental Economics and Policy, 14(1), 1-29.
OECD. (2020). OECD Environmental Performance Reviews: Indonesia 2019. OECD Publishing.
Organisation for Economic Co-operation and Development (OECD). (2020). Investing in climate, investing in growth
Peñasco, C., Anadón, L. D., & Verdolini, E. (2021). Systematic review of the outcomes and trade-offs of ten types of decarbonization policy instruments. Nature Climate Change, 11(3), 257-265.
Pretis, F. (2022). Does a carbon tax reduce CO2 emissions? Evidence from British Columbia. Environmental and Resource Economics, 83(1), 115-144.
Poterba, J. M. (1991). Tax policy to combat global warming: On designing a carbon tax. Global warming: Economic policy responses, 71-97.
SAPUTRA, K. A. K., DHARMAWAN, N. A. S., KAWISANA, P. G. W. P., & LARASDIPUTRA, G. D. (2023). Potential Carbon Tax in Indonesia: A Literature Review. International Journal of Environmental, Sustainability, and Social Science, 4(6), 1670-1677.
Stern, P. C., Dietz, T., Nielsen, K. S., Peng, W., & Vandenbergh, M. P. (2023). Feasible climate mitigation. Nature Climate Change, 13(1), 6-8.
Task Force on Climate-related Financial Disclosures (TCFD). (2017). Recommendations of the Task Force on Climate-related Financial Disclosures
United Nations Global Compact. (n.d.). Our work on climate action. Retrieved from https://www.unglobalcompact.org/what-is-gc/our-work/environment/climate (Note: Similar to the SBTi, this is a website with dynamic content, requiring a retrieval date)
Republic of Indonesia. (2016). Indonesia's Nationally Determined Contribution. Jakarta: Ministry of Environment and Forestry.
Science Based Targets initiative (SBTi). (n.d.). About us. Retrieved from https://sciencebasedtargets.org/about-us
Task Force on Climate-related Financial Disclosures (TCFD). (2017). Recommendations of the Task Force on Climate-related Financial Disclosures.
Uddin, K. M. K., Rahman, M. M., & Saha, S. (2023). The impact of green tax and energy efficiency on sustainability: Evidence from Bangladesh. Energy Reports, 10, 2306-2318.
UNFCCC. (2015). Adoption of the Paris Agreement. Paris: United Nations Framework Convention on Climate Change.
United Nations Environment Programme (UNEP). (2011). Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication
Van Valkengoed, A. M., Abrahamse, W., & Steg, L. (2022). To select effective interventions for pro-environmental behaviour change, we need to consider determinants of behaviour. Nature human behaviour, 6(11), 1482-1492.
Wang, X., Khurshid, A., Qayyum, S., & Calin, A. C. (2022). The role of green innovations, environmental policies and carbon taxes in achieving the sustainable development goals of carbon neutrality. Environmental Science and Pollution Research, 1-15.
World Resources Institute (WRI). (2021). Climate Analysis Indicators Tool (CAIT). Washington, DC: World Resources Institute
Zhang, K., Li, Y., Qi, Y., & Shao, S. (2021). Can green credit policy improve environmental quality? Evidence from China. Journal of Environmental Management, 298, 113445.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Abdul Karim, Dinda Riskanita
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Law, Poliitic and Humanities (JLPH) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Law, Poliitic and Humanities (JLPH).
