Corporate Readiness for Carbon Tax: Behavioral and Institutional Drivers of Voluntary Compliance Intention in Vietnam
Main Article Content
Abstract
Purpose – This study examines the behavioral and institutional drivers of firms’ voluntary carbon tax compliance intention in the context of Vietnam’s emerging carbon pricing transition.
Study design/methodology/approach – An integrated theoretical framework combining the Theory of Planned Behavior, Institutional Theory, and the Slippery Slope Framework was developed. Data were collected through a cross-sectional survey of Vietnamese enterprises. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to evaluate the proposed relationships.
Findings – The findings indicate that voluntary carbon tax compliance intention is influenced by a multidimensional interaction of behavioral, institutional, ethical, and economic factors. Perceived fairness, trust in tax authorities, institutional pressures, environmental responsibility, and perceived economic impacts significantly affect firms’ willingness to voluntarily comply with future carbon taxation. The results further suggest that corporate readiness for carbon taxation depends not only on enforcement mechanisms but also on policy legitimacy, transparency, and institutional credibility.
Research limitations/implications – The study is limited to a cross-sectional dataset and the Vietnamese context. Future research may extend the analysis using longitudinal or comparative approaches across different institutional settings.
Originality/contribution – This study contributes to the literature by shifting attention from carbon tax effectiveness under assumed compliance conditions toward the determinants of voluntary compliance intention itself through an integrated behavioral and institutional perspective.
Practical implications – The findings imply that effective carbon tax policies should combine enforcement measures with transparency, institutional trust-building, and corporate environmental awareness to enhance voluntary compliance readiness
Keywords
Carbon tax; Voluntary tax compliance; Corporate readiness
Article Details
Field of Economic (JEL Codes)
H23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies - H26 - Tax Evasion and Avoidance - Taxation, Subsidies, and Revenue, Q58 - Government Policy - Environmental Economics
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