ECONOMIC ANALYSIS OF LAW FROM A SUSTAINABILITY PERSPECTIVE

THE CASE OF TAX INCENTIVES FOR AUTOMOTIVE COMPANIES

Abstract

This article studies the application of Economic Analysis of Law from the perspective of sustainability, using as an empirical case the tax incentives granted to companies in the automotive sector in Brazil. The research seeks to answer the following question: have the tax incentives granted to automakers promoted sustainable development or merely generated concentrated economic benefits? The general objective is to evaluate the efficiency and effectiveness of these fiscal instruments in light of the principles of sustainability and economic rationality. The study adopts a deductive method, using bibliographic review and document analysis. The results indicate that, although the incentives have contributed to increased production and employment in the short term, they lack robust environmental safeguards and monitoring mechanisms to ensure lasting socio-environmental gains. It is concluded that the incorporation of sustainable criteria into tax incentive policies is essential to align industrial development with the objectives of a green economy, requiring a normative reassessment that prioritizes economic efficiency combined with environmental and social responsibility.