Does green tax theory affect the environmental sustainability and protection?

In emerging nations, green tax benefits pertaining to environmental sustainability, such as taxable tax income adjustments and the ITC (investment tax credit), are gaining popularity. On the other hand, implementing green tax incentives that address climate change in achieving the growth goals for sustainability measures. This research uses environment, social and governance (ESG) scores to construct our dependent variable. To determine which firms and how long the sample observations alter, this study employs a longitudinal research methodology. Probit and logistic regression are then used to determine who will benefit from the tax incentives. It has been noted that a company's more sustainable production methods are reflected in its higher ESG score. For this reason, our analysis employs dummy 1 for companies at the top of the ESG ranking and 0 otherwise.