Environmental Taxation and Extrafiscality in the Promotion of Renewable Energy

Abstract

This study analyzes environmental taxation and extrafiscality in the context of promoting renewable energies in Brazil, seeking to understand how these policies can encourage sustainable behaviors and reduce dependence on non-renewable sources. The objective is to investigate the potential of environmental taxation and its application in the Brazilian energy matrix, using a descriptive approach with literature review and documentary analysis. The results indicate that welldesigned tax policies, such as tax exemptions and taxation of polluting activities, have a positive impact on the adoption of renewable energies, especially solar and wind. Despite advancements, challenges such as sectoral resistance and lack of governmental coordination limit the effectiveness of these measures. It is concluded that a robust implementation of environmental tax policies is essential for the energy transition, highlighting the need for collaboration among government, businesses, and society for a sustainable future.