IDEAS home Printed from https://ideas.repec.org/p/ecr/col029/45418.html
   My bibliography  Save this paper

Green fiscal policies: An armoury of instruments to recover growth sustainably

Author

Listed:
  • Gramkow, Camila

Abstract

The present study seeks to explore how fiscal policies can employed to deliver both socioeconomic and environmental dividends with a focus on Brazil as a case study. In the current context where the global economy in general and Brazil’s economy in particular are struggling to reinvigorate, whereas disregarding environmental concerns is a hazard for long-term economic development itself, the focus is thus on reviewing the recent literature that seeks to reconcile a stronger economic and social performance based on fiscal instruments that foster sustainable investments. An overview of the theoretical a conceptual literature on green fiscal policies is presented, and the recent on the ground applications of such policies are also discussed. Both the theoretical framework and the international experiences provide useful insights and lessons learned to analyze the case of Brazil. Brazil’s vast territory, which is home to the world’s 8th largest economy and to the most biodiverse ecosystems in the planet, makes an interesting case study of how an armory of green fiscal policies could be implemented to recover growth sustainably.

Suggested Citation

  • Gramkow, Camila, 2020. "Green fiscal policies: An armoury of instruments to recover growth sustainably," Estudios y Perspectivas – Oficina de la CEPAL en Brasilia 5, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col029:45418
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/45418
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barbier,Edward B., 2010. "A Global Green New Deal," Cambridge Books, Cambridge University Press, number 9780521763097, May.
    2. Patuelli, Roberto & Nijkamp, Peter & Pels, Eric, 2005. "Environmental tax reform and the double dividend: A meta-analytical performance assessment," Ecological Economics, Elsevier, vol. 55(4), pages 564-583, December.
    3. Unruh, Gregory C. & Carrillo-Hermosilla, Javier, 2006. "Globalizing carbon lock-in," Energy Policy, Elsevier, vol. 34(10), pages 1185-1197, July.
    4. Unruh, Gregory C., 2002. "Escaping carbon lock-in," Energy Policy, Elsevier, vol. 30(4), pages 317-325, March.
    5. Gramkow, Camila & Simoes, Pedro Brandao da Silva & Kreimerman, Roberto, 2020. "O grande impulso (big push) energético do Uruguai," Estudios y Perspectivas – Oficina de la CEPAL en Brasilia 4, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. William D. Nordhaus & James Tobin, 1973. "Is Growth Obsolete?," NBER Chapters, in: The Measurement of Economic and Social Performance, pages 509-564, National Bureau of Economic Research, Inc.
    7. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, October.
    8. Clinch, J. Peter & Dunne, Louise & Dresner, Simon, 2006. "Environmental and wider implications of political impediments to environmental tax reform," Energy Policy, Elsevier, vol. 34(8), pages 960-970, May.
    9. Munasinghe, Mohan, 1999. "Is environmental degradation an inevitable consequence of economic growth: tunneling through the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 29(1), pages 89-109, April.
    10. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    11. Jaume Freire-González & Mun S. Ho, 2018. "Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model," Sustainability, MDPI, vol. 10(2), pages 1-18, February.
    12. Stoerk, Thomas & Wagner, Gernot & Ward, Robert E. T., 2018. "Recommendations for improving the treatment of risk and uncertainty in economic estimates of climate impacts in the Sixth Intergovernmental Panel on Climate Change Assessment Report," LSE Research Online Documents on Economics 87957, London School of Economics and Political Science, LSE Library.
    13. Sheila C. Dow, 2012. "Structured Pluralism," Palgrave Macmillan Books, in: Foundations for New Economic Thinking, chapter 10, pages 162-177, Palgrave Macmillan.
    14. Hector Pollitt & Jean-Francois Mercure, 2018. "The role of money and the financial sector in energy-economy models used for assessing climate and energy policy," Climate Policy, Taylor & Francis Journals, vol. 18(2), pages 184-197, February.
    15. Robert S. Pindyck, 2013. "Climate Change Policy: What Do the Models Tell Us?," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 860-872, September.
    16. Robert Pollin & Heidi Garrett-Peltier & James Heintz & Helen Scharber, 2008. "Green Recovery: A Program to Create Good Jobs & Start Building a Low-Carbon Economy," Published Studies peri_report, Political Economy Research Institute, University of Massachusetts at Amherst.
    17. Philip Arestis & Malcolm Sawyer, 2010. "The return of fiscal policy," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 32(3), pages 327-346, April.
    18. Bosquet, Benoit, 2000. "Environmental tax reform: does it work? A survey of the empirical evidence," Ecological Economics, Elsevier, vol. 34(1), pages 19-32, July.
    19. Jens Horbach & Vanessa Oltra & Jean Belin, 2013. "Determinants and Specificities of Eco-Innovations Compared to Other Innovations--An Econometric Analysis for the French and German Industry Based on the Community Innovation Survey-super-1," Industry and Innovation, Taylor & Francis Journals, vol. 20(6), pages 523-543, August.
    20. Monasterolo, Irene & Roventini, Andrea & Foxon, Tim J., 2019. "Uncertainty of climate policies and implications for economics and finance: An evolutionary economics approach," Ecological Economics, Elsevier, vol. 163(C), pages 177-182.
    21. Klenert, David & Mattauch, Linus & Combet, Emmanuel & Edenhofer, Ottmar & Hepburn, Cameron & Rafaty, Ryan & Stern, Nicholas, 2017. "Making Carbon Pricing Work," MPRA Paper 80943, University Library of Munich, Germany.
    22. Oecd, 2013. "What Have We Learned from Attempts to Introduce Green-Growth Policies?," OECD Green Growth Papers 2013/2, OECD Publishing.
    23. Philip Arestis, 2012. "Fiscal policy: a strong macroeconomic role," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(0), pages 93-108.
    24. Michael Jakob & Ottmar Edenhofer, 2014. "Green growth, degrowth, and the commons," Oxford Review of Economic Policy, Oxford University Press, vol. 30(3), pages 447-468.
    25. Richard P.F. Holt & Steven Pressman & Clive L. Spash (ed.), 2009. "Post Keynesian and Ecological Economics," Books, Edward Elgar Publishing, number 12988.
    26. Andrei Bougrov & Robert Johnson & Benno Ndulo & Pedro Paez & Avinash Persaud & Heidemarie Wieczorek-Zeul & Akhtar Aziz Zeti & Charles Goodhart & Jomo Kwame Sundaram & Youssef Boutros-Ghali & José Anto, 2010. "The Stiglitz Report," Working Papers hal-03415638, HAL.
    27. André Nassif & Carmem Feijó & Eliane Araújo, 2015. "Structural change and economic development: is Brazil catching up or falling behind?," Cambridge Journal of Economics, Oxford University Press, vol. 39(5), pages 1307-1332.
    28. Rainer Walz, 2010. "Competences for green development and leapfrogging in newly industrializing countries," International Economics and Economic Policy, Springer, vol. 7(2), pages 245-265, August.
    29. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-948, July.
    30. Scrieciu, S. Şerban & Barker, Terry & Ackerman, Frank, 2013. "Pushing the boundaries of climate economics: critical issues to consider in climate policy analysis," Ecological Economics, Elsevier, vol. 85(C), pages 155-165.
    31. Edward Barbier, 2010. "How is the Global Green New Deal going?," Nature, Nature, vol. 464(7290), pages 832-833, April.
    32. Camila Gramkow & Annela Anger-Kraavi, 2019. "Developing Green: A Case for the Brazilian Manufacturing Industry," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    33. William D. Nordhaus & James Tobin, 1972. "Economic Research: Retrospect and Prospect, Volume 5, Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number nord72-1, January-J.
    34. Terry Barker & Annela Anger & Unnada Chewpreecha & Hector Pollitt, 2012. "A new economics approach to modelling policies to achieve global 2020 targets for climate stabilisation," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 205-221, October.
    35. S. Scrieciu & A. Rezai & R. Mechler, 2013. "On the economic foundations of green growth discourses: the case of climate change mitigation and macroeconomic dynamics in economic modeling," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 2(3), pages 251-268, May.
    36. John Davis, 2014. "Pluralism and Anti-pluralism in Economics: The Atomistic Individual and Religious Fundamentalism," Review of Political Economy, Taylor & Francis Journals, vol. 26(4), pages 495-502, October.
    37. Clive L. Spash & Anthony Ryan, 2012. "Economic Schools of Thought on the Environment: Investigating Unity and Division," Cambridge Journal of Economics, Oxford University Press, vol. 36(5), pages 1091-1121.
    38. Thomas Stoerk & Gernot Wagner & Robert E T Ward, 2018. "Policy Brief—Recommendations for Improving the Treatment of Risk and Uncertainty in Economic Estimates of Climate Impacts in the Sixth Intergovernmental Panel on Climate Change Assessment Report," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(2), pages 371-376.
    39. Bowen, Alex & Fankhauser, Samuel & Stern, Nicholas & Zenghelis, Dimitri, 2009. "An outline of the case for a ‘green’ stimulus," LSE Research Online Documents on Economics 24345, London School of Economics and Political Science, LSE Library.
    40. Simon Kuznets, 1946. "National Income: A Summary of Findings," NBER Books, National Bureau of Economic Research, Inc, number kuzn46-2, January-J.
    41. Antoine Dechezleprêtre & David Popp, 2015. "Fiscal and Regulatory Instruments for Clean Technology Development in the European Union," CESifo Working Paper Series 5361, CESifo.
    42. Robert Garnett, 2006. "Paradigms and pluralism in heterodox economics," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 521-546.
    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. Camila Gramkow & Annela Anger-Kraavi, 2019. "Developing Green: A Case for the Brazilian Manufacturing Industry," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    2. Romero, João P. & Gramkow, Camila, 2021. "Economic complexity and greenhouse gas emissions," World Development, Elsevier, vol. 139(C).
    3. Galindo, Luis Miguel & Beltrán, Allan & Ferrer, Jimy & Alatorre, José Eduardo, 2017. "Efectos potenciales de un impuesto al carbono sobre el producto interno bruto en los países de América Latina: estimaciones preliminares e hipotéticas a partir de un metaanálisis y una función de tran," Documentos de Proyectos 41867, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability," FMM Working Paper 52-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    5. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability: A post-Keynesian perspective," Working Papers PKWP1912, Post Keynesian Economics Society (PKES).
    6. Ulf Johansen & Gerardo A. Perez-Valdes & Adrian Tobias Werner, 2018. "Regional Aspects of a Climate and Energy Tax Reform in Norway—Exploring Double and Multiple Dividends," Sustainability, MDPI, vol. 10(11), pages 1-20, November.
    7. Maruf Rahman Maxim, 2020. "Environmental fiscal reform and the possibility of triple dividend in European and non-European countries: evidence from a meta-regression analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 633-656, October.
    8. Foxon, Timothy J., 2011. "A coevolutionary framework for analysing a transition to a sustainable low carbon economy," Ecological Economics, Elsevier, vol. 70(12), pages 2258-2267.
    9. Hepburn, Cameron & Mealy, Penny, 2017. "Transformational Change: Parallels for addressing climate and development goals," INET Oxford Working Papers 2019-02, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised May 2019.
    10. Andreas A. Papandreou, 2015. "The Great Recession and the transition to a low-carbon economy," Working papers wpaper88, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    11. Auke Hoekstra & Maarten Steinbuch & Geert Verbong, 2017. "Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation," Complexity, Hindawi, vol. 2017, pages 1-23, December.
    12. S. Scrieciu & Valerie Belton & Zaid Chalabi & Reinhard Mechler & Daniel Puig, 2014. "Advancing methodological thinking and practice for development-compatible climate policy planning," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(3), pages 261-288, March.
    13. Zhibo Zhou & Weiguo Zhang & Xinxin Pan & Jiangfeng Hu & Ganlin Pu, 2019. "Environmental Tax Reform and the “Double Dividend” Hypothesis in a Small Open Economy," IJERPH, MDPI, vol. 17(1), pages 1-21, December.
    14. Franziska Piontek & Matthias Kalkuhl & Elmar Kriegler & Anselm Schultes & Marian Leimbach & Ottmar Edenhofer & Nico Bauer, 2019. "Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1357-1385, August.
    15. Xinghua Fan & Xuxia Li & Jiuli Yin, 2019. "Impact of environmental tax on green development: A nonlinear dynamical system analysis," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-23, September.
    16. Anger, Niels & Böhringer, Christoph & Löschel, Andreas, 2010. "Paying the piper and calling the tune?: A meta-regression analysis of the double-dividend hypothesis," Ecological Economics, Elsevier, vol. 69(7), pages 1495-1502, May.
    17. Choumert, Johanna & Combes Motel, Pascale & Dakpo, Hervé K., 2013. "Is the Environmental Kuznets Curve for deforestation a threatened theory? A meta-analysis of the literature," Ecological Economics, Elsevier, vol. 90(C), pages 19-28.
    18. K. Herve DAKPO & Pascale COMBES MOTEL & Johanna CHOUMERT, 2012. "The environmental Kuznets curve for deforestation: a threatened theory? A meta-analysis," Working Papers 201216, CERDI.
    19. Quentin Perrier & Philippe Quirion, 2016. "La transition énergétique est-elle favorable aux branches à fort contenu en emploi ? Une approche input-output pour la France," Working Papers 2016.09, FAERE - French Association of Environmental and Resource Economists.
    20. Chen, Shiyi, 2013. "What is the potential impact of a taxation system reform on carbon abatement and industrial growth in China?," Economic Systems, Elsevier, vol. 37(3), pages 369-386.

    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:ecr:col029:45418. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    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: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.