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

The green economy is viewed as a cost-effective means of achieving sustainability around the globe, and a recent study inferred the nexus between the fiscal imbalances and green economic growth based on E-7 economies data. This paper attempts to answer how green fiscal spending ensures green economi...

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Bibliographic Details
Published inEconomic change and restructuring Vol. 55; no. 4; pp. 2423 - 2443
Main Authors Fang, Ming, Chang, Chiu-Lan
Format Journal Article
LanguageEnglish
Published New York Springer US 01.11.2022
Springer Nature B.V
Subjects
Alternative energy
Budgets
Carbon dioxide
Cost analysis
Development Economics
Economic development
Economic Growth
Economic Policy
Economics
Economics and Finance
Emissions
Energy industry
Environmental stewardship
Expenditures
GDP
Green economy
Gross Domestic Product
International Economics
Literature reviews
Local government
Macroeconomics/Monetary Economics//Financial Economics
Natural resources
Political Economy/Economic Systems
Public goods
R&D
Renewable resources
Research & development
Sustainability
Sustainable development
Brazil
Turkey
China
Russia
India
Indonesia
Green fiscal spending
E-7 countries
Green economic growth
Fiscal imbalances
OLS technique
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Summary:The green economy is viewed as a cost-effective means of achieving sustainability around the globe, and a recent study inferred the nexus between the fiscal imbalances and green economic growth based on E-7 economies data. This paper attempts to answer how green fiscal spending ensures green economic growth and stabilizes fiscal imbalances in E-7 economies. The study findings highlighted the mechanism and viability of green fiscal spending for fiscal imbalances and green economic growth. More specifically, results showed that green fiscal spending extends green economic growth in Brazil with 30%, in China with 44%, in India with 11.8%, in Indonesia with 34%, Russia with 29.7%, and Turkey with 22.4%, respectively. Based on the findings, the following are our recommendations: (i) local governments should rebalance their fiscal budgets and invest more on public goods to assess local sustainable development, and (ii) several development initiatives specific to the local level should be employed to maximize fiscal spending.
ISSN:1573-9414
1574-0277
DOI:10.1007/s10644-022-09392-6