Main Article Content
Abstract
Purpose: This study examines the effects of carbon taxation on the economy and the environment from the perspective of corporate taxpayers. The research focuses on coal-fired power facilities in South Sulawesi province, particularly PT PLN Indonesian Power Barru. It explores how carbon taxation influences business operations, government revenue allocation, and environmental sustainability.
Research Design and Methodology: A qualitative research approach was employed, utilizing interviews, observations, and document analysis to gather in-depth insights. The case study method was used to analyze the impact of carbon taxation on corporate financial strategies and decision-making processes related to emissions reduction and energy transitions.
Findings and Discussion: The findings indicate that while carbon taxation generates revenue that can be allocated to critical sectors such as healthcare and education, it also increases business operational costs. The resulting rise in electricity tariffs poses financial challenges for industries dependent on fossil fuels. In response, businesses explore alternative strategies to reduce emissions, including adopting renewable energy sources and investing in cleaner technologies.
Implications: The study highlights the need for a balanced policy approach that ensures economic stability while promoting environmental sustainability. Policymakers should consider implementing incentives to facilitate corporate adaptation to carbon taxes and encourage investment in green energy solutions. Future research should explore the long-term impact of carbon taxation on corporate financial resilience and sustainable economic development in Indonesia.
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References
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- Almaeda, T. R., Pramuda, A. V. D., & Setiawan, D. (2023). Perkembangan Penelitian Carbon Disclosure di Indonesia. Reviu Akuntansi Dan Bisnis Indonesia, 7(1), 109–133. https://doi.org/10.18196/rabin.v7i1.17607
- Barus, E. B., & Wijaya, S. (2022). Implementation of Carbon Tax in Sweden and Finland and Comparison with Indonesia. Journal Of Tax Indonesia (Indonesian Tax Review), 5(2), 256–279.
- Bedi, A., & Singh, B. (2024). Unraveling the impact of stakeholder pressure on carbon disclosure in an emerging economy. Social Responsibility Journal, 20(4), 703–718. https://doi.org/10.1108/SRJ-04-2023-0198
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- Callery, P. J., & Kim, E. (2024). Set & Done? Trade‐offs between Stakeholder Expectation and Attainment Pressures in Corporate Carbon Target Management. Journal of Management Studies. https://doi.org/10.1111/joms.13140
- Clarkson, P. M., Li, Y., Pinnuck, M., & Richardson, G. D. (2015). The Valuation Relevance of Greenhouse Gas Emissions under the European Union Carbon Emissions Trading Scheme. European Accounting Review, 24(3), 551–580. https://doi.org/10.1080/09638180.2014.927782
- Delport, E. (2018). Creating an effective and equitable legal carbon taxing regime for South Africa. http://hdl.handle.net/11427/27945
- Espenan, N. P. (2023). Improving Voluntary Carbon Markets Through Standardization and Blockchain Technology. Wyoming Law Review, 23(1). https://doi.org/10.59643/1942-9916.1473
- Fernando, Y., & Hor, W. L. (2017). Impacts of energy management practices on energy efficiency and carbon emissions reduction: A survey of malaysian manufacturing firms. Resources, Conservation and Recycling, 126, 62–73. https://doi.org/https://doi.org/10.1016/j.resconrec.2017.07.023
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- Hansen, J., Kharecha, P., Sato, M., Masson-Delmotte, V., Ackerman, F., Beerling, D. J., Hearty, P. J., Hoegh-Guldberg, O., Hsu, S.-L., & Parmesan, C. (2013). Assessing “dangerous climate change”: Required reduction of carbon emissions to protect young people, future generations and nature. PloS One, 8(12), e81648. https://doi.org/10.1371/journal.pone.0081648
- Harrison, K. (2010). The comparative politics of carbon taxation. Annual Review of Law and Social Science, 6(1), 507–529.
- Johnsson, F., Kjärstad, J., & Rootzén, J. (2019). The threat to climate change mitigation posed by the abundance of fossil fuels. Climate Policy, 19(2), 258–274. https://doi.org/10.1080/14693062.2018.1483885
- Jonsson, S., Ydstedt, A., & Asen, E. (2020). Sweden’s Carbon Tax: Looking Back on 30 Years of Carbon Taxes. Washington, DC, USA: Tax Foundation.
- Li, M., & Gao, X. (2022). Implementation of enterprises’ green technology innovation under market-based environmental regulation: An evolutionary game approach. Journal of Environmental Management, 308, 114570. https://doi.org/https://doi.org/10.1016/j.jenvman.2022.114570
- Liesen, A., Hoepner, A. G., Patten, D. M., & Figge, F. (2015). Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe. Accounting, Auditing & Accountability Journal, 28(7), 1047–1074. https://doi.org/10.1108/AAAJ-12-2013-1547
- Lorek, S., & Spangenberg, J. H. (2014). Sustainable consumption within a sustainable economy – beyond green growth and green economies. Journal of Cleaner Production, 63, 33–44. https://doi.org/https://doi.org/10.1016/j.jclepro.2013.08.045
- Luo, L., & Tang, Q. (2014). Carbon tax, corporate carbon profile and financial return. Pacific Accounting Review, 26(3), 351–373. https://doi.org/10.1108/PAR-09-2012-0046
- Miao, Q., He, Y., Pan, C., & Huang, J. (2024). How Organizational Socialization Tactics Affect Volunteer Outcomes for New Volunteers. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 35(5), 977–993. https://doi.org/10.1007/s11266-024-00667-2
- Nurfadila, N., & Muslim, M. (2021). Relationship between Tax Planning and Deferred Tax Expenses on Profit Management. Bongaya Journal of Research in Accounting (BJRA), 4(1 SE-Articles), 45–57. https://doi.org/10.37888/bjra.v4i1.267
- Nußholz, J. L. K., Nygaard Rasmussen, F., & Milios, L. (2019). Circular building materials: Carbon saving potential and the role of business model innovation and public policy. Resources, Conservation and Recycling, 141, 308–316. https://doi.org/https://doi.org/10.1016/j.resconrec.2018.10.036
- Olpah, H., Bachtiar, W. A., & Ananda, L. D. (2023). The Implementation Of Carbon Tax In Indonesia: Regulations, Challenges, And Its Impacts. Jurnal RAK (Riset Akuntansi Keuangan), 8(2), 180–193. https://doi.org/10.31002/rak.v8i2.1142
- Pattiasina, V. (2019). Capital Intensity and tax avoidance. International Journal of Social Sciences and Humanities (IJSSH)., 3(1), 58–71. https://doi.org/10.29332/ijssh.v3n1.250
- Prichard, W., Custers, A. L., Dom, R., Davenport, S. R., & Roscitt, M. A. (2019). Innovations in tax compliance: Conceptual framework. World Bank Policy Research Working Paper, 9032. https://ssrn.com/abstract=3485915
- Ramadani, S., Sinring, B., & Tenriwaru, T. (2021). Internalisasi Budaya Sipakatau, Sipakainge, Sipakalebbi Dan Pammali Dalam Kepatuhan Pajak Umkm Kota Makassar. Simak, 19(01), 1–16. https://doi.org/10.35129/simak.v19i01.176
- Selvi, S., Rahmi, N., & Rachmatulloh, I. (2020). Urgensi penerapan pajak karbon di Indonesia. Jurnal Reformasi Administrasi: Jurnal Ilmiah Untuk Mewujudkan Masyarakat Madani, 7(1), 29–34. https://doi.org/10.31334/reformasi.v7i1.845.
- Triana, V. (2008). Pemanasan global. Jurnal Kesehatan Masyarakat Andalas, 2(2), 159–163. https://pdfs.semanticscholar.org/e786/67ae6fcdd13360ecd48eb6351c5412a0f5a8.pdf.
- Vassileva, I., Thygesen, R., Campillo, J., & Schwede, S. (2015). From goals to action: The efforts for increasing energy efficiency and integration of renewable sources in eskilstuna, sweden. Resources, 4(3), 548–565. https://doi.org/10.3390/resources4030548
- Wimala, M., & Yeremy, J. (2022). Potensi Penerapan Kebijakan Carbon Tax Pada Industri Konstruksi Indonesia. Teras Jurnal: Jurnal Teknik Sipil, 12(1), 295–306. https://doi.org/10.29103/tj.v12i1.663
- Yan, H., Qamruzzaman, M., & Kor, S. (2023). Nexus between green investment, fiscal policy, environmental tax, energy price, natural resources, and clean energy—a step towards sustainable development by fostering clean energy inclusion. Sustainability, 15(18), 13591. https://doi.org/10.3390/su15181359
- Yunus, S., Elijido-Ten, E. O., & Abhayawansa, S. (2020). Impact of stakeholder pressure on the adoption of carbon management strategies. Sustainability Accounting, Management and Policy Journal, 11(7), 1189–1212. https://doi.org/10.1108/SAMPJ-04-2019-0135
References
Adam, S., Delestre, I., Levell, P., & Miller, H. (2022). Tax policies to reduce carbon emissions. Fiscal Studies, 43(3), 235–263. https://doi.org/10.1111/1475-5890.12308
Almaeda, T. R., Pramuda, A. V. D., & Setiawan, D. (2023). Perkembangan Penelitian Carbon Disclosure di Indonesia. Reviu Akuntansi Dan Bisnis Indonesia, 7(1), 109–133. https://doi.org/10.18196/rabin.v7i1.17607
Barus, E. B., & Wijaya, S. (2022). Implementation of Carbon Tax in Sweden and Finland and Comparison with Indonesia. Journal Of Tax Indonesia (Indonesian Tax Review), 5(2), 256–279.
Bedi, A., & Singh, B. (2024). Unraveling the impact of stakeholder pressure on carbon disclosure in an emerging economy. Social Responsibility Journal, 20(4), 703–718. https://doi.org/10.1108/SRJ-04-2023-0198
Boguslavsky, D. V, Sharova, N. P., & Sharov, K. S. (2022). Evolutionary Challenges to Humanity Caused by Uncontrolled Carbon Emissions: The Stockholm Paradigm. International Journal of Environmental Research and Public Health, 19(24), 16920. https://doi.org/10.3390/ijerph192416920
Callery, P. J., & Kim, E. (2024). Set & Done? Trade‐offs between Stakeholder Expectation and Attainment Pressures in Corporate Carbon Target Management. Journal of Management Studies. https://doi.org/10.1111/joms.13140
Clarkson, P. M., Li, Y., Pinnuck, M., & Richardson, G. D. (2015). The Valuation Relevance of Greenhouse Gas Emissions under the European Union Carbon Emissions Trading Scheme. European Accounting Review, 24(3), 551–580. https://doi.org/10.1080/09638180.2014.927782
Delport, E. (2018). Creating an effective and equitable legal carbon taxing regime for South Africa. http://hdl.handle.net/11427/27945
Espenan, N. P. (2023). Improving Voluntary Carbon Markets Through Standardization and Blockchain Technology. Wyoming Law Review, 23(1). https://doi.org/10.59643/1942-9916.1473
Fernando, Y., & Hor, W. L. (2017). Impacts of energy management practices on energy efficiency and carbon emissions reduction: A survey of malaysian manufacturing firms. Resources, Conservation and Recycling, 126, 62–73. https://doi.org/https://doi.org/10.1016/j.resconrec.2017.07.023
Friskianti, Y., & Handayani, B. D. (2014). Pengaruh self assessment system, keadilan, teknologi perpajakan, dan ketidakpercayaan kepada pihak fiskus terhadap tindakan tax evasion. Accounting Analysis Journal, 3(4). https://doi.org/10.15294/aaj.v3i4.4216
Hansen, J., Kharecha, P., Sato, M., Masson-Delmotte, V., Ackerman, F., Beerling, D. J., Hearty, P. J., Hoegh-Guldberg, O., Hsu, S.-L., & Parmesan, C. (2013). Assessing “dangerous climate change”: Required reduction of carbon emissions to protect young people, future generations and nature. PloS One, 8(12), e81648. https://doi.org/10.1371/journal.pone.0081648
Harrison, K. (2010). The comparative politics of carbon taxation. Annual Review of Law and Social Science, 6(1), 507–529.
Johnsson, F., Kjärstad, J., & Rootzén, J. (2019). The threat to climate change mitigation posed by the abundance of fossil fuels. Climate Policy, 19(2), 258–274. https://doi.org/10.1080/14693062.2018.1483885
Jonsson, S., Ydstedt, A., & Asen, E. (2020). Sweden’s Carbon Tax: Looking Back on 30 Years of Carbon Taxes. Washington, DC, USA: Tax Foundation.
Li, M., & Gao, X. (2022). Implementation of enterprises’ green technology innovation under market-based environmental regulation: An evolutionary game approach. Journal of Environmental Management, 308, 114570. https://doi.org/https://doi.org/10.1016/j.jenvman.2022.114570
Liesen, A., Hoepner, A. G., Patten, D. M., & Figge, F. (2015). Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe. Accounting, Auditing & Accountability Journal, 28(7), 1047–1074. https://doi.org/10.1108/AAAJ-12-2013-1547
Lorek, S., & Spangenberg, J. H. (2014). Sustainable consumption within a sustainable economy – beyond green growth and green economies. Journal of Cleaner Production, 63, 33–44. https://doi.org/https://doi.org/10.1016/j.jclepro.2013.08.045
Luo, L., & Tang, Q. (2014). Carbon tax, corporate carbon profile and financial return. Pacific Accounting Review, 26(3), 351–373. https://doi.org/10.1108/PAR-09-2012-0046
Miao, Q., He, Y., Pan, C., & Huang, J. (2024). How Organizational Socialization Tactics Affect Volunteer Outcomes for New Volunteers. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 35(5), 977–993. https://doi.org/10.1007/s11266-024-00667-2
Nurfadila, N., & Muslim, M. (2021). Relationship between Tax Planning and Deferred Tax Expenses on Profit Management. Bongaya Journal of Research in Accounting (BJRA), 4(1 SE-Articles), 45–57. https://doi.org/10.37888/bjra.v4i1.267
Nußholz, J. L. K., Nygaard Rasmussen, F., & Milios, L. (2019). Circular building materials: Carbon saving potential and the role of business model innovation and public policy. Resources, Conservation and Recycling, 141, 308–316. https://doi.org/https://doi.org/10.1016/j.resconrec.2018.10.036
Olpah, H., Bachtiar, W. A., & Ananda, L. D. (2023). The Implementation Of Carbon Tax In Indonesia: Regulations, Challenges, And Its Impacts. Jurnal RAK (Riset Akuntansi Keuangan), 8(2), 180–193. https://doi.org/10.31002/rak.v8i2.1142
Pattiasina, V. (2019). Capital Intensity and tax avoidance. International Journal of Social Sciences and Humanities (IJSSH)., 3(1), 58–71. https://doi.org/10.29332/ijssh.v3n1.250
Prichard, W., Custers, A. L., Dom, R., Davenport, S. R., & Roscitt, M. A. (2019). Innovations in tax compliance: Conceptual framework. World Bank Policy Research Working Paper, 9032. https://ssrn.com/abstract=3485915
Ramadani, S., Sinring, B., & Tenriwaru, T. (2021). Internalisasi Budaya Sipakatau, Sipakainge, Sipakalebbi Dan Pammali Dalam Kepatuhan Pajak Umkm Kota Makassar. Simak, 19(01), 1–16. https://doi.org/10.35129/simak.v19i01.176
Selvi, S., Rahmi, N., & Rachmatulloh, I. (2020). Urgensi penerapan pajak karbon di Indonesia. Jurnal Reformasi Administrasi: Jurnal Ilmiah Untuk Mewujudkan Masyarakat Madani, 7(1), 29–34. https://doi.org/10.31334/reformasi.v7i1.845.
Triana, V. (2008). Pemanasan global. Jurnal Kesehatan Masyarakat Andalas, 2(2), 159–163. https://pdfs.semanticscholar.org/e786/67ae6fcdd13360ecd48eb6351c5412a0f5a8.pdf.
Vassileva, I., Thygesen, R., Campillo, J., & Schwede, S. (2015). From goals to action: The efforts for increasing energy efficiency and integration of renewable sources in eskilstuna, sweden. Resources, 4(3), 548–565. https://doi.org/10.3390/resources4030548
Wimala, M., & Yeremy, J. (2022). Potensi Penerapan Kebijakan Carbon Tax Pada Industri Konstruksi Indonesia. Teras Jurnal: Jurnal Teknik Sipil, 12(1), 295–306. https://doi.org/10.29103/tj.v12i1.663
Yan, H., Qamruzzaman, M., & Kor, S. (2023). Nexus between green investment, fiscal policy, environmental tax, energy price, natural resources, and clean energy—a step towards sustainable development by fostering clean energy inclusion. Sustainability, 15(18), 13591. https://doi.org/10.3390/su15181359
Yunus, S., Elijido-Ten, E. O., & Abhayawansa, S. (2020). Impact of stakeholder pressure on the adoption of carbon management strategies. Sustainability Accounting, Management and Policy Journal, 11(7), 1189–1212. https://doi.org/10.1108/SAMPJ-04-2019-0135