Nexus between fiscal imbalances, green fiscal spending, and green economic growth: empirical findings from E-7 economies

Fang, Ming; Chang, Chiu-Lan

doi:10.1007/s10644-022-09392-6

Cited by 8 publications

(3 citation statements)

References 73 publications

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“…One such macroeconomic imbalance is the inability to achieve satisfactory growth rates. The government seeks to achieve satisfactory growth rates by boosting public and private investments (Fang and Chang 2022). Issuing EU common debt is a tool aimed at achieving satisfactory growth rates, especially during periods of imbalances, such as the pandemic crisis, but also the energy crisis due to armed conflicts.…”

Section: Market Failuresmentioning

confidence: 99%

Energy and Environmental Challenges in the European Union and Green Bonds

Maris,

Psychalis

2024

Social Sciences

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Could the European Union mitigate the negative effects of economic, pandemic and environmental crises using only one tool? The answer is positive, by implementing “green” fiscal expansion financed by “green” common debt, such as issuing green bonds. In this paper, we connect the independent responses to different crises into a single response that could end them. The European Union’s theoretical background is based on new-classical models, but current research findings doubt new-classical orthodoxy, underling the importance of economic federalism for sustainable economic and green growth. We argue that the Economic and Monetary Union has to speed up fiscal federalism by establishing a powerful European Union common budget using green Eurobonds and implementing fiscal transfers as a mechanism to address the consequences of the triple crisis.

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Section: Market Failuresmentioning

confidence: 99%

Energy and Environmental Challenges in the European Union and Green Bonds

Maris,

Psychalis

2024

Social Sciences

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“…Wang and Yu found that environmental tax rates have a positive impact on pollution reduction and green innovation [31]. Concerning green fiscal expenditures, Fang and Chang conducted an empirical study based on data from E-7 economies and concluded that green fiscal expenditure is beneficial to green economic development [32]. Hussain et al demonstrated that green government subsidies significantly decrease CEs and promote green development [33].…”

Section: The Impact Of Green Public Financementioning

confidence: 99%

Green Public Finance and “Dual Control” of Carbon Emissions: New Evidence from China

Nie,

Pan,

Feng

2024

Systems

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In response to the escalating global climate change, countries are progressively adopting green public finance as a crucial instrument for achieving carbon neutrality. This study considers energy conservation and emission reduction (ECER) in demonstration cities’ construction as a natural experiment and verifies the effect of green public finance on total carbon emissions (TCEs) and carbon emission intensity (CEI) by using a difference-in-differences (DID) model with the help of the panel data of 276 Chinese cities from 2006 to 2019. The empirical results indicate that (1) the ECER policy effectively reduces CEs in the demonstration cities, resulting in a reduction of TCEs by 13.13% and CEI by 12.90%; (2) the ECER policy can help optimize energy structure, accelerate green technology innovation, and improve energy efficiency, thus promoting “dual control” of CEs; and (3) the CE reduction effect of the ECER policy is stronger in western cities, southern cities, lower-administrative-level cities, and cities with weaker financial strength, which has a typical “supporting the weak” effect. Based on this, we conclude that green public finance is conducive to promoting “dual control” of CEs. Our conclusions not only enrich the theoretical research on green public finance but also provide governments with empirical evidence to implement more effective green public finance policies and expedite carbon neutrality.

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“…China’s manufacturing industry urgently needs to advance the formation of a resource-saving and environmentally friendly industrial structure and manufacturing system through transformation and upgrading to support for green economic growth 5 . As an incentive-based industrial policy that emphasizes an innovation-driven and eco-civilized development path through the development and implementation of an intelligent and green manufacturing system, Made in China 2025 is a significant initiative for promoting the manufacturing industry’s transformation and upgrading, providing solid economic support for green economic growth 6 . To promote the effective implementation of this industrial policy, fully mobilize localities to explore new modes and paths of manufacturing development, and strengthen the urban manufacturing industry’s influential demonstration role in advancing the green transition, the Ministry of Industry and Information Technology of China successively launched 30 Made in China 2025 pilot cities (city clusters) in 2016 and 2017.…”

Section: Introductionmentioning

confidence: 99%

A double machine learning model for measuring the impact of the Made in China 2025 strategy on green economic growth

Yuan,

Liu

2024

Sci Rep

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The transformation and upgrading of China’s manufacturing industry is supported by smart and green manufacturing, which have great potential to empower the nation’s green development. This study examines the impact of the Made in China 2025 industrial policy on urban green economic growth. This study applies the super-slacks-based measure model to measure cities’ green economic growth, using the double machine learning model, which overcomes the limitations of the linear setting of traditional causal inference models and maintains estimation accuracy under high-dimensional control variables, to conduct an empirical analysis based on panel data of 281 Chinese cities from 2006 to 2021. The results reveal that the Made in China 2025 strategy significantly drives urban green economic growth, and this finding holds after a series of robustness tests. A mechanism analysis indicates that the Made in China 2025 strategy promotes green economic growth through green technology progress, optimizing energy consumption structure, upgrading industrial structure, and strengthening environmental supervision. In addition, the policy has a stronger driving effect for cities with high manufacturing concentration, industrial intelligence, and digital finance development. This study provides valuable theoretical insights and policy implications for government planning to promote high-quality development through industrial policy.

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Nexus between fiscal imbalances, green fiscal spending, and green economic growth: empirical findings from E-7 economies

Cited by 8 publications

References 73 publications

Energy and Environmental Challenges in the European Union and Green Bonds

Energy and Environmental Challenges in the European Union and Green Bonds

Green Public Finance and “Dual Control” of Carbon Emissions: New Evidence from China

A double machine learning model for measuring the impact of the Made in China 2025 strategy on green economic growth

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