Aligning Tax Incentives and Purchasing Behavior for Consumers of Environment-Friendly Products

Abstract

The growth in purchasing environmentally friendly products has stagnated. It is thought to have been caused by the presence of a premium image attached to environmentally friendly products, thus creating a reluctance for consumers to have aggressive purchasing behavior towards these environmentally friendly products, so that the researcher raises a tax incentive variable which is expected to reduce the gap that occurs. This research is expected to be able to provide recommendations regarding policies regarding tax incentives for environmentally friendly products. The method of this research is by using a survey and analyzed using multiple regression by including tax incentives as a moderating variable, to prove whether tax incentives can reduce the gap between attitudes and behaviors that appear in the phenomenon of purchasing environmentally friendly products.