Green financing for cutting emissions and simultaneous economic upturn in the European Union: Myth or reality?
Contemporary challenges related to economic development and environmental protection require simultaneous attention, yet economic policy decisions within the European Union often prioritise growth over environmental sustainability. Current literature increasingly highlights the potential advantages...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-12-01
|
| Series: | Sustainable Futures |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188824002041 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Contemporary challenges related to economic development and environmental protection require simultaneous attention, yet economic policy decisions within the European Union often prioritise growth over environmental sustainability. Current literature increasingly highlights the potential advantages of green fiscal spending, noting its capacity to create jobs, stimulate economic growth, and simultaneously tackle environmental and social challenges. However, considerable relevant research is based on hypothetical simulations rather than real-world data. This study reviews the existing literature and extends prior research by analysing real-world data from Eurostat and the OECD, thus shifting the green growth debate from theoretical modelling to practical insights across 22 European Union member states. It examines the validity of four key myths, aiming to either (partially) confirm or debunk them. The ex-post analysis implies that GHG emissions can be reduced even with lower-than-average green recovery budgets when investments are strategically targeted, while a disconnect between investment size and emission reductions in some newer member states underscores the need for more tailored policy measures. In addition, combining multiple green financing approaches with tax relief is more effective in reducing GHG than relying solely on grants and loans. Empirical evidence from ex-post research can provide valuable insights to guide the development of strategies that are both impactful and resource-efficient. |
|---|---|
| ISSN: | 2666-1888 |