IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v55y2023i8p869-884.html
   My bibliography  Save this article

Environmental expenditure, policy stringency and green economic growth: evidence from OECD countries

Author

Listed:
  • Amir Arjomandi
  • Hassan F. Gholipour
  • Reza Tajaddini
  • Charles Harvie

Abstract

This study explores the link between environmental policy stringency and spending and the growth of environmental GDP and productivity. Using the Pooled Mean Group Autoregressive Distributed Lag model, we examine the short- and long-term effectiveness of environmental policy stringency and environmental spending on pollution-adjusted GDP and productivity growth for a sample of OECD nations. Although these policies and their outcomes differ considerably from country to country, our findings reveal that governments’ expenditure on environmental protection emerges as a significantly stimulatory factor of national output in the short-term. Our long-run results show that both tighter environmental policies and environmental expenditure can slow down ‘green’ GDP and productivity growth over time with policy stringencies having a weaker impact. Overall, our findings do not support the Porter Hypothesis, but rather confirm the widely held view that these policies may hinder economic activity and growth.

Suggested Citation

  • Amir Arjomandi & Hassan F. Gholipour & Reza Tajaddini & Charles Harvie, 2023. "Environmental expenditure, policy stringency and green economic growth: evidence from OECD countries," Applied Economics, Taylor & Francis Journals, vol. 55(8), pages 869-884, February.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:869-884
    DOI: 10.1080/00036846.2022.2094883
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2022.2094883
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2022.2094883?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:55:y:2023:i:8:p:869-884. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.