Publication: Corporate Income Tax Incentives to Promote Environmentally Sustainable Investment: Findings from 40 economies covered by the World Bank Corporate Income Tax Incentives Database
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2025-01-06
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2025-01-06
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The paper advances a framework to take stock of CIT incentives across two interrelated policy objectives: stimulating investment in green sectors and processes; and/or encouraging divestment from dirty sectors. It distinguishes three categories of CIT incentives related to the green agenda: (i) green process-oriented incentives, which support environmentally sustainable production processes (e.g., less emission-intensive steel production); (ii) green sector-oriented incentives, whose sector or output support environmental sustainability (e.g., manufacturing of batteries for electric vehicles); and (iii) incentives for polluting (or “dirty”) sectors, referring to sectors or outputs that are counterproductive to environmentally sustainable objectives (e.g., fossil fuel based energy production).
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“World Bank Group. 2025. Corporate Income Tax Incentives to Promote Environmentally Sustainable Investment: Findings from 40 economies covered by the World Bank Corporate Income Tax Incentives Database. Prosperity Insight Series. © World Bank. http://hdl.handle.net/10986/42615 License: CC BY-NC 3.0 IGO.”
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