Assessing Tax Policies for Urban Rehabilitation: The Role of Tax Incentives on Sustainability

• Author(s): Carvalho, André ; Dinis, Ana ; Pereira, Liliana
• Date: 2025
• Persistent ID: http://hdl.handle.net/11110/3312
• Origin: Politécnico do Cávado e do Ave
• Subject(s): Urban Rehabilitation; Tax Incentives; Sustainability
• Document Type: Book part
• Language: English

Description

The urgent need to transform buildings into sustainable energy-efficient spaces is driven by the environmental impact of construction activities. This study examine the impact of tax incentives on urban rehabilitation among Portuguese companies using data from the Portuguese Tax Authority Portal (2015-2022) and the Sabi Database. Employing SPSS for descriptive analysis and Pearson correlation, the authors examine the tax incentives and urban rehabilitation indicators, including Municipal Property Tax, Municipal Property Transfer Tax, energy consumption, greenhouse gas emissions, and municipal environmental expenditures. The findings reveal significant positive correlations between tax incentives, higher reconstruction rates, and increased municipal environmental expenditures. However, these incentives also correlate with higher energy consumption and GHG emissions, highlighting the need for stricter environmental criteria in tax policies. This study offers valuable insights for policymakers on enhancing sustainable urban development through effective tax incentives.