Earmarked Green Tax Benefits and Flood Risk Experience Shaping Public Support and Compliance Intentions

Eka Indriastuti; Umatun Markhumah

doi:10.69725/jebi.v2i3.316

Authors

Eka Indriastuti Program of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar Regency, Central Java 57761, Indonesia
Umatun Markhumah Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java 57761, Indonesia

DOI:

https://doi.org/10.69725/jebi.v2i3.316

Keywords:

Green tax, Flood risk, Tax fairness, Policy acceptance, Climate Adaptation

Abstract

Purpose: This paper investigates the effects of flood mitigation benefit perceptions, governance aspects and disaster severity on perceptions towards and intentions to comply with green taxation.

Method: A cross-sectional study with PLS-SEM approach was carried out on data collected digitally from flood-prone areas.

Findings: The findings show that the perceived benefits of targeted flood mitigation programs, environmental effectiveness, fairness, and trust in the government significantly encourage support for green taxes and the intention to comply with them. Perceptions of transparency and accountability have a weaker direct effect. The impact of flooding does not directly influence support, but it has an important moderating effect. This means that it increases the effect of targeted benefits and perceptions of fairness on the intention to comply. Findings show that, in disaster-affected areas, residents assess green taxes not based on abstract environmental goals, but based on specific benefits that are in line with the principle of fairness.

Novelty: This study proposes the flood impact severity as a contextual moderator in the association between cope-green tax design and disaster experience and rearticulates green taxation less in terms of control-of-emissions and more as adaptive climate-finance.

Implications: The results of the study indicate that public acceptance of green taxes can be increased if the government allocates the revenue from these taxes to visible flood prevention efforts, ensures a fair distribution of the burden, and strengthens institutional credibility in areas vulnerable to climate risks.

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Author Biographies

Eka Indriastuti, Program of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar Regency, Central Java 57761, Indonesia

Eka Indriastuti is a researcher and undergraduate scholar in the Accounting Study Program, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests focus on taxation policy, social justice in fiscal systems, and public perceptions of tax fairness. She conducts quantitative primary research to examine how progressive tax structures influence taxpayer compliance and societal perceptions of equity. Grounded in Tax Justice Theory, her work emphasizes that the effectiveness of progressive taxation is determined not only by tariff structures but also by perceived fairness, which shapes public support and compliance behavior. Her research contributes to empirical discussions on equitable taxation and sustainable public finance policy.
Umatun Markhumah, Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java 57761, Indonesia

Umatun Markhumah, S.E., S.H., M.Ak., CTC. is a lecturer and researcher in accounting and business studies with interdisciplinary academic qualifications in economics, law, and accounting. She is affiliated with Universitas Sebelas Maret and Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests include taxation, financial accounting, corporate governance, and public finance, with a particular focus on tax compliance, tax justice, and regulatory effectiveness. Using quantitative and empirical research methods, her work contributes to evidence-based fiscal and accounting policy development in emerging economy contexts.

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