Green Tax Policy as a Fiscal Instrument for Climate Transition: Comparative Analysis of Indonesia and Selected Countries

DOI

10.2991/978-2-38476-620-8_42How to use a DOI?

Keywords

green tax policy; carbon pricing; ASEAN; emissions trading scheme; carbon border adjustment mechanism; multiple case study

Abstract

Growing climate risks and the EU CBAM, which enters its definitive phase in 2026, have increased pressure on ASEAN countries to establish credible carbon pricing policies. Despite this growing urgency, the design and implementation of green tax policies vary considerably across the region. This study compares the development of green tax in Singapore, Thailand, Indonesia, Malaysia, and Vietnam by examining policy design, institutional arrangements, implementation, and the factor shaping policy outcomes. A qualitative multiple case study approach was adopted, combining within case and cross case analyses to identify common patterns and differences across countries. The findings show that Singapore has developed the region’s most advanced carbon pricing framework through a legally binding carbon tax supported by broad emissions coverage and complementary policy measures. Thailand and Vietnam are progressing toward emissions trading system, while Malaysia is preparing to introduce a sector specific carbon tax. Indonesia, despite being the largest carbon emitter in ASEAN, continues to implement one of the region’s lowest carbon tax rates and has experienced limited activity in its domestic carbon market. Across the five cases, policy effectiveness is influenced not only by carbon tax rates but also by institutional readiness, regulatory certainty, emissions coverage, and the design of revenue recycling mechanism. External policy developments, particularly the EU CBAM, have also emerged as an important catalyst for accelerating domestic carbon pricing reforms. These findings suggest that strengthening institutional capacity, improving policy coherence, and expanding regional cooperation will be as important as increasing carbon prices in supporting effective climate mitigation across ASEAN.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Titin Fachriah Nur
PY  - 2026
DA  - 2026/10/23
TI  - Green Tax Policy as a Fiscal Instrument for Climate Transition: Comparative Analysis of Indonesia and Selected Countries
BT  - Proceedings of the 8th International Conference of Vocational Education, Applied Science and Technology (ICVEAST 2026)
PB  - Atlantis Press
SP  - 537
EP  - 560
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-620-8_42
DO  - 10.2991/978-2-38476-620-8_42
ID  - Nur2026
ER  -