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Green Fiscal Policies and Their Role in Promoting Sustainable Development

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  • Joshua Kimani

Abstract

Purpose: The objective of this study was to investigate green fiscal policies and their role in promoting sustainable development. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings revealed that there exists a contextual and methodological gap relating to green fiscal policies and their role in promoting sustainable development. Preliminary empirical review revealed that changes in macroeconomic variables like inflation, interest rates, and GDP growth significantly influenced private investment in Kenya. Stable and predictable economic conditions encouraged investment, while volatility discouraged it, highlighting the need for consistent macroeconomic policies to support private sector growth. Unique Contribution to Theory, Practice and Policy: Environmental Kuznets Curve theory (EKC), Ecological Modernization theory (EMT) and Public Choice theory may be used to anchor future studies on green fiscal policies and their role in promoting sustainable development. The study recommended maintaining macroeconomic stability, strengthening financial markets, and promoting inclusive growth to boost investment. It contributed to theory by highlighting the link between macroeconomic factors and investment behavior, and to practice and policy by calling for reforms that create a stable and supportive investment environment.

Suggested Citation

  • Joshua Kimani, 2025. "Green Fiscal Policies and Their Role in Promoting Sustainable Development," Journal of Environment, CARI Journals Limited, vol. 5(3), pages 1-13.
    • Handle: RePEc:bhx:ojtjoe:v:5:y:2025:i:3:p:1-13:id:2679
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    File URL: https://carijournals.org/journals/index.php/JE/article/view/2679
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    References listed on IDEAS

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    1. Gladys Awinpoak Abindaw Nabieu & Godfred Alufar Bokpin & Achampong Kofi Osei & Patrick Opoku Asuming, 2021. "Fiscal rules, fiscal performance and economic growth in Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 33(4), pages 607-619, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Macroenomic Policy; Private Investment Growth; Economic Stability; Inflation; Gross Domestic Product (GDP) Growth; E60; E22; E32; E43; O40;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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