DEVELOPING ENVIRONMENTAL TAX LAW FOR THAI INDUSTRY: A LAW AND ECONOMICS PERSPECTIVE

Abstract

This article proposed a framework for developing environmental tax law for Thai industry, employing a Law and Economics analytical approach to enhance the legal effectiveness in addressing environmental issues, particularly industrial pollution such as wastewater, greenhouse gas emissions, and hazardous waste. The study advocated for the adoption of environmental taxation based on the Polluter Pays Principle to create economic incentives for pollution reduction and to encourage behavioral change within the industrial sector in alignment with environmental goals. A comparative analysis was conducted with case studies from OECD countries such as Sweden, the Netherlands, and Switzerland that successfully designed and implemented effective environmental tax systems compared with Thailand, which lacks robust economic incentives and enforcement mechanisms. The article highlights the importance of designing flexible and appropriate environmental tax schemes, coupled with transparent governance, public participation, and integration with clean technology policies. These elements are essential for achieving tangible outcomes in law enforcement. Ultimately, the article emphasized the integration of environmental tax law with sustainable development objectives, aiming to foster a balance between economic growth and environmental preservation, an essential direction for long-term reform of Thailand’s environmental legal system.