THE IMPACT OF ENVIRONMENTAL TAX POLICIES ON THE ADOPTION OF SUSTAINABILITY PRACTICES IN SUPPLY CHAIN OPERATIONS IN UGANDA. A CASE OF NILE PLASTICS LIMITED

Abstract

ABSTRACT This study will explore the effectiveness of environmental tax policy in sustainability practice adoption on supply chain operations using the Value-Belief-Norm Theory and Social Practice Theory. The VBN theory describes how altruistic, biospheric, and egoistic values implore one towards sustainable consumption behaviors, while SPT identifies interaction between individual action and social context. Current key areas of the research focus on the impact of fees related to water use, excise duties on plastic bags, and fuel taxes on consumer behavior, waste reduction, and revenue generation. The study applies the DSGE model in conducting the analysis of household and firm responses to water resource taxes and highlights some challenges that, if not addressed, may include social resistance in France and the impacts being clearly regressive toward lower-income households. The study intends to address the significant gap that has been observed in the available literature focused on Europe and a few African countries regarding the contribution of environmental tax policy to sustainable supply chain practices in Uganda. This study adopted a mixed-method research design, incorporating quantitative and qualitative approaches to provide detailed analysis in a real-life context. The study was carried out at Nile Plastics Limited in Nalukolongo, Kampala, and the target population was 80 staff members. Participants in the sample size of 66 were selected using stratified random sampling. Data sources used in the study are primary and secondary. Primary data were collected using structured self-administered questionnaires and personal interviews, while secondary data were obtained from organizational reports and literature. These questionnaires were comprised of both open and closed questions based on a five-point Likert scale in order to acquire elaborated responses. Approaching the relevant authorities for permission and informing the respondents about the study were included in the data collection procedures. The study employed content validity measures, pretesting of questionnaires, and confirmations of reliability by Cronbach's alpha coefficients for ensuring validity and the reliability of the measures. Data analysis used descriptive statistics to analyze quantitative data and thematic content analysis in analyzing qualitative data. Ethical considerations were strictly adhered to: informed consent was obtained, and anonymity of respondents was maintained. The findings provide an overarching understanding of the effect of environmental tax policies on sustainability practices in Ugandan supply chain operations and contribute to the broader discourse on sustainable development and environmental taxation.