Environmental Taxation and Sustainable Development in Zambia: A Case of Excise Duty on Plastics in Lusaka City

Abstract

Environmental taxes have emerged as one of the most important policy instruments used to address environmental challenges and promoting sustainable development worldwide. The research addresses the problem of plastic waste pollution, which poses significant environmental and health risks. This research assesses the effectiveness of Excise duty on plastic carrier bags in promoting sustainable development in Lusaka City. A mixed-methods approach was adopted by means collecting both qualitative and quantitative data through a survey and a review of secondary data. The population consisted of local consumers of plastic bags. Data collected from a representative sample of stakeholders in Lusaka city provide insights into the socio-economic and environmental impacts of this taxation policy. The data collected was analyzed using a thematic analysis for qualitative responses and Microsoft excel for quantitative data and visualization. The findings suggest that awareness alone is insufficient to drive significant behavioural change. While knowledge of environmental taxation is relatively high, the effectiveness of the excise duty as a deterrent to plastic use remains limited. The findings suggest that either the tax rate is too low to discourage plastic usage or that there are insufficient alternatives available for consumers. Through the adoption of a multi-faceted approach, Zambia can strengthen the role of environmental taxation in reducing plastic pollution and promoting sustainable development.