Impact of green finance and environmental tax on sustainable development: Evidence from Vietnam

Abstract

The worldwide need for environmental preservation and robust economic development has garnered significant interest from scholars and politicians. This study examines the influence of green finance and environmental protection tax on Vietnam’s financial sustainability and the transition towards a green economyas an emerging economy. The study obtained data from the Central Bank of Vietnam and World Bank Indicators covering 2012 to 2022. The authors used the Ordinary Least Squares approach to examine the associations between the variables. The analysis and examination of the data used Stata 19 software. The findings show a favourable correlation between green finance and environmental tax on sustainable development goalswith all control variables. These results have prompted authorities to focus on green finance and environmental issues in the progress towards the country’s green economy and sustainable development.

Keywords

• environmental tax
• green finance
• sustainable development