THE IMPACT OF THE ENVIRONMENTAL TAX ON THE COMPETITIVENESS OF UKRAINIAN ENTERPRISES WITHIN THE FRAMEWORK OF THE THEORY OF CONSTRAINTS

Abstract

This article reveals the impact of the environmental tax on the competitiveness of Ukrainian enterprises. Analyzed within the framework of the Theory of Constraints, the study investigates whether the environmental tax acts as a significant constraint itself or interacts with existing operational bottlenecks. Particular attention is drawn to how the tax might exacerbate the negative effects of existing constraints such as decreased net profit, insufficient or outdated material and technical resources, lack of highly qualified personnel, intense competition, management imperfections, and underdeveloped or absent managerial and strategic accounting systems.
The authors examine the dynamics of environmental tax revenues to the State and local budgets of Ukraine for the period 2020-2024. Key factors directly affecting these indicators are identified, notably legislative changes (including increased tax rates on carbon dioxide emissions) and the impact of the full-scale invasion of Ukraine by the Russian Federation, which has negatively affected industrial polluters. The role of the environmental tax for Ukrainian enterprises is investigated from dual perspectives. On one hand, it can stimulate enterprises to implement innovative «clean» technologies, improve their corporate image, and adapt to international standards. On the other hand, the environmental tax may increase financial burdens and operating costs, potentially reducing competitiveness. 
The top 10 Ukrainian companies implementing «green» energy technologies in 2021 are presented. The use of ESG (Environmental, Social, Governance) criteria in making business investment decisions is considered, emphasizing the environmental (‘E’) aspect of activities. Foreign experiences regarding mechanisms and taxation norms for environmental polluters are reviewed. A comprehensive approach is proposed to minimize negative consequences and enhance the positive impact of the environmental tax on the competitiveness of Ukrainian enterprises, grounded in the Theory of Constraints. This approach includes improving the taxation system, providing state support for environmental modernization, and harmonizing legislation with international standards.