SME's and environmental taxation: a mixed methods analysis.

Abstract

The aim of the study is to understand the perceptions of small and medium-sized enterprises (SMEs) towards environmental taxation in UK. The study is based on the premise that environmental taxes are applicable to SMEs just as they are applicable to larger businesses because SMEs operate in almost all sectors of the economy. However, given the unique characteristics of SMEs including constraints of resources and often managed by one owner-manager, it remains to be seen how SMEs cope with the challenges of environmental taxation. An extensive literature review is undertaken to provide a clear background to the research aim and objectives. The literature review discusses environmental taxation as an instrument to mitigate climate change and also in reference to SMEs. The review of literature also provides details into the unique characteristics and the environmental behaviour and attitudes of SMEs. Hypotheses are developed from the literature review and are tested through this study. The researcher chose mixed methodology to do justice to the overall research aim. Data was collected from the chosen sample using surveys and interviews. The study undertakes survey to collect primary data to test the hypotheses. Interviews are also conducted to lend further insights into the survey data findings. To identify the sample, preliminary input-output analysis using UK input output tables is undertaken. The research attempts to make a valuable contribution in understanding environmental taxation from the perspective of the SMEs and is a ready source of reference for literature on the same. The study also makes methodological contribution through the use of input-output tables in the sampling process for the main study.