Abstract for: Inclusive Green Growth and Sustainable Finance Through Ecotax - a System Dynamics Model

This paper examines the possibility of combining the efforts for socio-economic improvement and environment protection through an ecotax. Based on one of our previous models on sustainable finance of economic growth through several socio-economic options, our new model extension and simulations demonstrate that both the rate of the ecotax and the use of the ecotax revenue matter. A properly imposed ecotax may contribute to the achievement of both inclusive green growth and sustainable finance.