Impact of Green Taxation on the Efficiency and Development of the Service Sector: A Comparative Analysis

Haqnazarova Yulduz Juraqulovna; Baratov  Doston

Authors

Haqnazarova Yulduz Juraqulovna Assistant at the "Investment and Innovations" Department, Samarkand Institute of Economics and Service
Baratov Doston Student of Samarkand Institute of Economics and Service

Keywords:

Green Taxation, Service Sector Efficiency, Sustainable Development, Environmental Fiscal Policy, Energy Efficiency Index, Digital Transformation, Emerging Economies, Carbon Pricing, Structural Upgrading, Porter Hypothesis

Abstract

This study investigates the multifaceted impact of green taxation on the efficiency and sustainable development of the service sector across diverse economic landscapes. It aims to evaluate how environmental levies influence operational costs, innovation adoption, and overall sectoral growth. Utilizing a comparative quantitative approach, the research analyzes longitudinal data from 2018 to 2024 across selected emerging and developed economies. A Fixed Effects (FE) regression model is employed to isolate the impact of environmental tax revenues on service-oriented Gross Domestic Product (GDP) and the Energy Efficiency Index (EEI). The results indicate a "U-shaped" relationship between green tax intensity and sectoral efficiency. While initial implementation increases operational overhead, long-term adherence fosters significant technological shifts toward digitalization, which reduces carbon footprints and improves margins. This paper bridges the gap in environmental economics by focusing specifically on the service sector, an area often overlooked in favor of manufacturing, and introduces a cross-regional comparative framework that accounts for varying levels of institutional maturity.