Environmental expenditure spillovers: Evidence from an estimated multi-area DSGE model

Pan, Xiongfeng; Hai-tao, XU; Li, Mengna; Zong, Tianjiao; Lee, Chew Tin; Lü, Yanbin

doi:10.1016/j.eneco.2019.104645

Cited by 19 publications

(9 citation statements)

References 44 publications

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“…Therefore, the author considers important the inclusion of local government spending in a RBC model that seeks out to reflect the behavior of any sub-national economy. In contrast with Yang (2009), Pan et al (2020) find that environmental spending generates a significant negative impact on consumption, investment and capital stock. This negative influence on consumption and investment is more evident during the first years of the period studied.…”

Section: Theoretical Approachmentioning

confidence: 67%

“…The novelty of this work in relation to the standard model is the introduction of public spending in the RBC model and its extrapolation to a specific region of China. Pan et al (2020) build a neo-Keynesian DSGE model with a simultaneous spatial equation. This model incorporates nominal rigidities, indirect effects of environmental spending and a broad set of shocks.…”

Section: Inclusion Criteriamentioning

confidence: 99%

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Regional business cycles in emerging economies: a review of the literature

Padilla

Otero

2022

IJOEM

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PurposeThis article offers a review of the literature on regional business cycles (BCs) in emerging economies. The objective is synthesizing the existing studies based on theoretical, empirical and methodological approaches.Design/methodology/approachThe methodological framework includes the following stages: research questions, bibliography location, the selection of articles and the evaluation of the literature, analysis and synthesis, and the reporting and use of results.FindingsThe evidence suggests that expansionary phases last longer than recessions'; public expenditure shows a pro-cyclical behavior; and factors such as productive structure and international trade explain the synchronization of regional BCs.Originality/valueUp until now, there is no research that performs a review of regional BCs in emerging economics.

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Section: Theoretical Approachmentioning

confidence: 67%

Section: Inclusion Criteriamentioning

confidence: 99%

Regional business cycles in emerging economies: a review of the literature

Padilla

Otero

2022

IJOEM

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“…In terms of green fiscal policies, the primary emphasis is still placed on examining the economic and environmental impacts of overall environmental spending, emission reduction subsidies, and pollution prevention and control expenditures. Pan et al [23] previously examined the spatial effects of local government environmental expenditures and found that local government environmental expenditures displaced local consumption and investment but had a positive impact on the economic growth of other regions. Meanwhile, Wu [24] discovered that the effects of emissions reduction subsidies on economic growth manifested as short-term promotion and long-term inhibition, whereas the opposite was true for impacts on environmental quality.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There has been extensive research into the economic effects of environmental policies, although the majority of these studies have focused on traditional environmental regulation policies and green finance policies, with less research conducted on green fiscal policies. Although some studies have used the DSGE model to analyze the economic and environmental consequences of green fiscal policies [23][24][25], they have been primarily focused on the spatial implications of policies and their impact on environmental quality. Additionally, considering that most of these studies include businesses' emission reduction efforts as exogenous factors, it is difficult to gain insights into the internal processes of policies working on economic and environmental variables, and there have been no strong conclusions obtained regarding this.…”

Section: Literature Reviewmentioning

confidence: 99%

Green Fiscal and Tax Policies in China: An Environmental Dynamic Stochastic General Equilibrium Approach

Yan,

Wang

2024

Sustainability

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Implementing green fiscal and tax policies for reducing emissions and pollution without negatively impacting economic growth remains a challenge. We aimed to determine whether environmental protection and economic growth can both be attained under a green fiscal and tax policy. Specifically, we created a dynamic stochastic general equilibrium (DSGE) model to explore the environmental, economic, and welfare impacts of green fiscal and tax policies. Additionally, a welfare analysis based on an environmental DSGE (E-DSGE) model was performed. We found that (1) raising the environmental or energy tax rate was beneficial for reducing emissions and environmental pollution. However, this approach inhibited economic growth, an outcome not conducive to improving welfare. (2) Increasing the subsidy rate for emission reduction not only incentivized businesses to reduce emissions but also improved economic growth and welfare. (3) The emission reduction mechanisms of environmental tax policies, energy tax policies, and subsidy policies are different. Among them, the environmental tax policy and the energy tax policy both reduce pollution by forcing businesses to increase their emission reduction efforts, but the former is a tax on pollution emissions, while the latter is a tax on energy consumption. However, emission reduction subsidy policies incentivize companies to increase their emission reduction efforts and reduce pollution emissions by alleviating their financial burden. (4) Increasing government spending on environmental remediation could promote economic growth. However, considering that this does not motivate companies to reduce emissions, increasing their share will lead to a reduction in emission reduction subsidies, ultimately negatively impacting social welfare. (5) An environmental tax would cause greater losses in welfare than an energy tax. These findings will enable policymakers to optimize expenditures and tax systems.

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“…Therefore government expenditure policies may have a material indirect effect on the economy. Such an effect should be taken into account in the assessment of the policy effectiveness and its impact on the total benefits gained by the society (Pan, X. et al, 2020).…”

Section: mentioning

confidence: 99%

The role of government expenditure on environmental improvement A case study of Egypt

Eltayb

2021

المجلة العلمیة لقطاع کلیات التجارة

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This paper aims at observing the recent trends in government expenditure on environmental improvement. In order to achieve this goal, previous studies and more recent ones in particular were reviewed. Relevant modern terms such as the green growth economy, the circular economy, sustainable development and environmental sustainability were also introduced.This study concluded that the effectiveness of the role of government expenditure on environmental protection depends to a great extent on governance quality, the actual institutional performance and the public expenditure structure. This result was further supported by the case study findings.The case study explored the long term and the short term effects of government expenditure on environment performance in Egypt during the period extending from 1990 to 2017. The co-integration method was applied via using the autoregressive distributed lad (ARDL) model. Results revealed a negative impact of per capita government expenditure on genuine wealth per capita (as a measure of weak environmental sustainability) in the long run. Moreover, the study found a positive relationship between per capita government expenditure and per capita ecological deficit (as a measure of strong environmental sustainability) in the long run.

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Environmental expenditure spillovers: Evidence from an estimated multi-area DSGE model

Cited by 19 publications

References 44 publications

Regional business cycles in emerging economies: a review of the literature

Regional business cycles in emerging economies: a review of the literature

Green Fiscal and Tax Policies in China: An Environmental Dynamic Stochastic General Equilibrium Approach

The role of government expenditure on environmental improvement A case study of Egypt

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