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ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

Environmental Taxation and Cost Waste Management: Insights from Doura Refinery's Production Units (2015--2018)

Journal of Environmental Accounting and Management 14(2) (2026) 331--344 | DOI:10.5890/JEAM.2026.06.010

A. H. Hanan$^{1}$, S. B. Rajaa$^{2}$, I. W. Amel$^{3}$ , O. L. AlSeddiq$^{1}$

$^{1}$ Department of Accounting and Financial Studies, University of Baghdad, Iraq

$^{2}$ Middle Technical University, Technical Institute Kut

$^{3}$ Ministry of Trade, State Company for Foodstuff Trading

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Abstract

This study analyzes the financial impact of environmental taxation on waste management at the Doura Refinery from 2015 to 2018, focusing on four production units: hydrogenation, wax removal, furfural dealing, and distillation. Results indicate a direct relationship between waste generation and tax liabilities, with the Furfural Dealing Unit contributing the highest waste output (27.4\%) and incurring the most significant tax burden. Environmental tax revenue increased from 1,723,688 dinars in 2015 to 4,160,935 dinars in 2018, yet its share in total refinery revenue remained minimal at 0.0376\%. The study emphasizes the need for improved cost allocation methods to effectively integrate tax liabilities into financial reporting. Policy recommendations include adopting progressive tax structures, enhancing transparency in tax reporting, and introducing incentives for waste reduction. Future research should explore differentiated tax rates based on waste type and conduct comparative studies across multiple refineries to assess broader applicability. This study provides key insights for policymakers and accountants on leveraging environmental taxation for financial transparency and sustainability in industrial operations.

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