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Comment on “EU Taxonomy: Mission Impossible” by Kooths (2023)

Author

Listed:
  • Mehmandoost Kotlar Ali

    (Vlerick Business School, Brussels, Belgium)

Abstract

Stefan Kooths’s (2023) article, “EU Taxonomy: Mission Impossible,” offers a critical perspective on the European Union (EU) Taxonomy, arguing that it conflicts with free-market principles and could potentially impede economic growth. While Kooths (2023) raises legitimate concerns about bureaucratic burdens and the risk of market distortions, this paper argues that the EU Taxonomy is an essential policy tool to correct market failures, enhance transparency in sustainable finance, and catalyze the transition toward a more sustainable and resilient European economy. This commentary addresses Kooths’s criticisms while providing a more balanced view of the Taxonomy’s potential. Specifically, it highlights its role in addressing environmental externalities, boosting investor confidence by reducing greenwashing, and fostering green growth and innovation both within the EU and globally.

Suggested Citation

  • Mehmandoost Kotlar Ali, 2025. "Comment on “EU Taxonomy: Mission Impossible” by Kooths (2023)," The Economists' Voice, De Gruyter, vol. 22(1), pages 173-180.
    • Handle: RePEc:bpj:evoice:v:22:y:2025:i:1:p:173-180:n:1005
    DOI: 10.1515/ev-2024-0077
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    More about this item

    Keywords

    EU taxonomy; sustainable finance; greenwashing; green deal; environmental externalities;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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