Back to Search
Start Over
Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
- Source :
- International Journal of Environmental Research and Public Health, International Journal of Environmental Research and Public Health, Vol 17, Iss 4425, p 4425 (2020)
- Publication Year :
- 2020
- Publisher :
- MDPI, 2020.
-
Abstract
- Environmental risks, in particular climate change and environmental pollution, are among the key challenges faced by modern governments nowadays. Environmental risks are associated with specific costs and expenditures necessary to mitigate their negative effects. In this context, the financial system plays a significant role, particularly the public financial system, which allocates and redistributes public resources and has an impact on market participants by imposing environmental taxes. This study assessed the interdependence between environmental degradation and public expenditure, financial sector development, environmental taxes, and related socioeconomic policies. The aim was to diagnose and define the relationship between environmental degradation and sustainable fiscal instruments used in the financial system. The original research approach adopted in the study is the inclusion of variables representing a sustainable approach to assessment of the financial system. Two groups of European Union countries were analyzed for the period 2008–2017, namely, converging economies from Central and Eastern Europe and the largest developed economies of Western Europe. The authors found a strong relationship between greenhouse gas emissions and fiscal instruments, especially expenditure on research and development, and the development of the financial sector. In the case of environmental taxes, their impact differed depending on the country, being predominantly beneficial in countries with higher greenhouse gas emissions but unfavorable in countries with lower emissions levels.
- Subjects :
- Financial sector development
010504 meteorology & atmospheric sciences
Economic policy
Health, Toxicology and Mutagenesis
finance
lcsh:Medicine
Environmental pollution
Context (language use)
Public expenditure
Case Report
010501 environmental sciences
01 natural sciences
greenhouse gas emission
media_common.cataloged_instance
European union
Environmental degradation
0105 earth and related environmental sciences
media_common
lcsh:R
Public Health, Environmental and Occupational Health
government
sustainability
n/a
Greenhouse gas
Sustainability
Business
policy
Subjects
Details
- Language :
- English
- ISSN :
- 16604601 and 16617827
- Volume :
- 17
- Issue :
- 12
- Database :
- OpenAIRE
- Journal :
- International Journal of Environmental Research and Public Health
- Accession number :
- edsair.doi.dedup.....83804b27fcf8ff05867a36dd3fdb0705