IDEAS home Printed from https://ideas.repec.org/a/taf/teepxx/v11y2022i2p196-217.html
   My bibliography  Save this article

On the interaction between fiscal policy and CO2 emissions in G7 countries: 1875–2016

Author

Listed:
  • Veli Yilanci
  • Ugur Korkut Pata

Abstract

This study examines the impact of fiscal policy and economic growth on CO2 emissions employing a bootstrap causality test in the frequency domain. Analysing a long time series of data from 1875 to 2016 for G7 countries, we mainly aim to investigate the validity of the environmental Kuznets curve (EKC) hypothesis and whether fiscal policy affects the environment. The findings of causality from government expenditures to CO2 emissions are time-varying. However, the causality from economic growth to CO2 emissions follows a stable path and does not change over time in all countries except Canada. Since causal relations follow a consistent line and do not confirm an inverted U-shaped relationship between economic growth and environmental pollution, the EKC hypothesis does not hold in the G7 countries, implying that environmental problems are not automatically solved. The results also suggest that fiscal policy can contribute to climate change mitigation at different points in time.

Suggested Citation

  • Veli Yilanci & Ugur Korkut Pata, 2022. "On the interaction between fiscal policy and CO2 emissions in G7 countries: 1875–2016," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 11(2), pages 196-217, April.
    • Handle: RePEc:taf:teepxx:v:11:y:2022:i:2:p:196-217
    DOI: 10.1080/21606544.2021.1950575
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/21606544.2021.1950575
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/21606544.2021.1950575?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ma, Beiling & Sharif, Arshian & Bashir, Madiha & Bashir, Muhammad Farhan, 2023. "The dynamic influence of energy consumption, fiscal policy and green innovation on environmental degradation in BRICST economies," Energy Policy, Elsevier, vol. 183(C).
    2. Xin, Liguo & Ahmad, Manzoor & Khattak, Shoukat Iqbal, 2023. "Impact of innovation in hybrid electric vehicles-related technologies on carbon dioxide emissions in the 15 most innovative countries," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    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:teepxx:v:11:y:2022:i:2:p:196-217. 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/teep20 .

    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.