INTEGRATION OF SUSTAINABLE ACCOUNTING AND GREEN TAX IN ENCOURAGING MSME ENVIRONMENTAL RESPONSIBILITY

Abstract

This study examines the integration of sustainable accounting practices and green tax policies to promote environmental responsibility among Micro, Small, and Medium Enterprises (MSMEs). Given the resource constraints faced by MSMEs, particularly in developing economies, adopting sustainable practices is challenging. Using a qualitative literature review, the research analyzes sustainable accounting, green tax policies, and MSME adoption. The findings show that while sustainable accounting can enhance environmental performance and efficiency, its adoption is limited by financial and expertise barriers. Green tax policies, particularly in developed countries, encourage MSMEs to reduce their ecological impact, but their effectiveness is less pronounced in developing regions. The combination of sustainable accounting and green taxes offers MSMEs both environmental and financial benefits, but requires supportive regulatory environments. This study contributes to the theoretical understanding of sustainability in small businesses and provides practical recommendations for policymakers to design targeted interventions. Future research should focus on empirical studies to explore sector-specific challenges and external support for MSME sustainability.