IDEAS home Printed from https://ideas.repec.org/a/liu/liucej/v21y2024i1p97-121.html
   My bibliography  Save this article

Constitutional Constraints on Public Debt in the Ecological Transition Era

Author

Listed:
  • Michele Lemme

Abstract

This article focuses on financing the necessary public expenditures to address the challenge of climate change faced by human societies, specifically examining the choice of public debt. Considering the already significant levels of public debt worldwide, this decision becomes particularly complex. Therefore, the article explores the instruments of public debt in the context of climate change, raising questions about the consequences of unwise public borrowing and wasteful public expenditure, and how to protect future generations from bearing the primary burden of public loans. The article further undertakes a scholarly examination of what constitutional law can contribute to the ongoing debate.

Suggested Citation

  • Michele Lemme, 2024. "Constitutional Constraints on Public Debt in the Ecological Transition Era," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 21(1), pages 97-121, June.
  • Handle: RePEc:liu:liucej:v:21:y:2024:i:1:p:97-121
    as

    Download full text from publisher

    File URL: https://ejce.liuc.it/articles/ejce029.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Döring & Ruven D. Oehmke, 2019. "About the Economic Psychology of Public Debt," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 54(5), pages 297-303, September.
    2. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
    3. B. Douglas Bernheim, 1987. "Ricardian Equivalence: An Evaluation of Theory and Evidence," NBER Chapters, in: NBER Macroeconomics Annual 1987, Volume 2, pages 263-316, National Bureau of Economic Research, Inc.
    4. Schuknecht, Ludger, 2004. "EU fiscal rules: issues and lessons from political economy," Working Paper Series 421, European Central Bank.
    5. Yongzheng Liu & Haibo Feng, 2015. "Tax structure and corruption: cross-country evidence," Public Choice, Springer, vol. 162(1), pages 57-78, January.
    6. Robert C. Schmidt, 2021. "Are there similarities between the Corona and the climate crisis?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 11(2), pages 159-163, June.
    7. Giuseppe Eusepi, 2020. "From subjectivism to constitutionalism: the intellectual journey of James M. Buchanan through his Italian heroes," Public Choice, Springer, vol. 183(3), pages 273-285, June.
    8. Abbott, Kenneth W. & Snidal, Duncan, 2000. "Hard and Soft Law in International Governance," International Organization, Cambridge University Press, vol. 54(3), pages 421-456, July.
    9. Willem H. Buiter & James Tobin, 1978. "Fiscal and Monetary Policies, Capital Formation, and Economic Activity," Cowles Foundation Discussion Papers 512, Cowles Foundation for Research in Economics, Yale University.
    10. William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
    11. Peter H. Howard & Thomas Sterner, 2017. "Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 197-225, September.
    12. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    13. Giampaolo Garzarelli & Lyndal Keeton & Aldo A. Sitoe, 2022. "Rights redistribution and COVID-19 lockdown policy," European Journal of Law and Economics, Springer, vol. 54(1), pages 5-36, August.
    14. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    15. Cowell, F. A., 1992. "Tax evasion and inequity," Journal of Economic Psychology, Elsevier, vol. 13(4), pages 521-543, December.
    16. Seater, John J, 1993. "Ricardian Equivalence," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 142-190, March.
    17. Zimmermann, Horst, 2015. "The deep roots of the government debt crisis," Journal of Financial Perspectives, EY Global FS Institute, vol. 3(1), pages 41-58.
    18. Roberto Ricciuti, 2003. "Assessing Ricardian Equivalence," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 55-78, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hayo, Bernd & Neumeier, Florian, 2017. "The (In)validity of the Ricardian equivalence theorem–findings from a representative German population survey," Journal of Macroeconomics, Elsevier, vol. 51(C), pages 162-174.
    2. Gumus, Erdal, 2003. "Crowding-Out Hypothesis versus Ricardian Equivalence Proposition: Evidence from Literature," MPRA Paper 42141, University Library of Munich, Germany.
    3. M. Luisa Fuster Pérez, 1993. "La Hipótesis de equivalencia ricardiana: un análisis empírico en los países de la Comunidad Europea," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 495-506, September.
    4. George W. Evans & Seppo Honkapohja & Kaushik Mitra, 2012. "Does Ricardian Equivalence Hold When Expectations Are Not Rational?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(7), pages 1259-1283, October.
    5. Brittle, Shane, 2009. "Ricardian Equivalence and the Efficacy of Fiscal Policy in Australia," Economics Working Papers wp09-10, School of Economics, University of Wollongong, NSW, Australia.
    6. Barseghyan, Levon & Coate, Stephen, 2023. "Financing local public projects," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    7. Gianluigi Giorgioni & Ken Holden, 2003. "Ricardian equivalence, expansionary fiscal contraction and the stock market: a VECM approach," Applied Economics, Taylor & Francis Journals, vol. 35(12), pages 1435-1443.
    8. Francesco Forte & Cosimo Magazzino, 2015. "Ricardian equivalence and twin deficits hypotheses in the euro area," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(2), pages 148-166, October.
    9. Yoichi Matsubayashi & Takao Fujii, 2012. "Substitutability of Savings by Sectors: OECD Experiences," Discussion Papers 1215, Graduate School of Economics, Kobe University.
    10. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669, Elsevier.
    11. Benjamin M. Friedman, 2005. "Deficits and Debt in the Short and Long Run," NBER Working Papers 11630, National Bureau of Economic Research, Inc.
    12. Jonathan Heathcote, 2005. "Fiscal Policy with Heterogeneous Agents and Incomplete Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 161-188.
    13. Aqdas Ali Kazmi, 1994. "Private Consumption, Government Spending, Debt Neutrality: Resolving Kormendi- Feldstein-Modigliani Controversy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 1055-1071.
    14. Vogel, Edgar, 2014. "Optimal Level of Government Debt: Matching Wealth Inequality and the Fiscal Sector," MEA discussion paper series 201410, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    15. Roberto Ricciuti, 2003. "Assessing Ricardian Equivalence," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 55-78, February.
    16. repec:ebl:ecbull:v:5:y:2008:i:16:p:1-14 is not listed on IDEAS
    17. Maarten Allers & Jakob De Haan & Flip De Kam, 1998. "Using Survey Data To Test for Ricardian Equivalence," Public Finance Review, , vol. 26(6), pages 565-582, November.
    18. Kenneth Kasa, 1994. "Finite horizons and the twin deficits," Economic Review, Federal Reserve Bank of San Francisco, pages 19-28.
    19. Buchholz Wolfgang & Heindl Peter, 2015. "Ökonomische Herausforderungen des Klimawandels," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 324-350, December.
    20. Griet Malengier & Lorenzo Pozzi, 2005. "Examining Ricardian Equivalence by estimating and bootstrapping a nonlinear dynamic panel model," Money Macro and Finance (MMF) Research Group Conference 2005 61, Money Macro and Finance Research Group.
    21. António Afonso, 2008. "Euler testing Ricardo and Barro in the EU," Economics Bulletin, AccessEcon, vol. 5(16), pages 1-14.

    More about this item

    Keywords

    Constitution; Ecological Transition; Public Debt; Fiscal Illusion; Taxation; Future Generations;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

    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:liu:liucej:v:21:y:2024:i:1:p:97-121. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Laura Ballestra (email available below). General contact details of provider: https://edirc.repec.org/data/liuccit.html .

    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.