Can Public Debt Mitigate Environmental Debt? Theory and Empirical Evidence

Autor: Mohamed Boly, Jean-Louis Combes, Maxime Menuet, Alexandru Minea, Pascale Combes Motel, Patrick Villieu
Přispěvatelé: Laboratoire d'Économie d'Orleans [2022-...] (LEO), Université d'Orléans (UO)-Université de Tours (UT)-Université Clermont Auvergne (UCA), Laboratoire d'Économie d'Orleans (LEO), Université d'Orléans (UO)-Université de Tours (UT)
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Economics and Econometrics
Public debt
JEL: E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy
Macroeconomic Aspects of Public Finance
and General Outlook/E.E6.E62 - Fiscal Policy
Welfare
CO2 emissions
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Environmental debt
General Energy
JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q52 - Pollution Control Adoption and Costs • Distributional Effects • Employment Effects
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O4 - Economic Growth and Aggregate Productivity/O.O4.O44 - Environment and Growth
JEL: H - Public Economics/H.H6 - National Budget
Deficit
and Debt/H.H6.H63 - Debt • Debt Management • Sovereign Debt
JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q58 - Government Policy
ComputingMilieux_MISCELLANEOUS
Panel data
Zdroj: Energy Economics
Energy Economics, 2022, 111, pp.105895. ⟨10.1016/j.eneco.2022.105895⟩
Energy Economics, Elsevier, In press
ISSN: 0140-9883
DOI: 10.1016/j.eneco.2022.105895⟩
Popis: International audience; This paper investigates the relationship between public debt and environmental debt—reflecting CO carbon concentration. First, using an endogenous growth model in which pollution abatement spending can be financed by public debt, we show that public debt and environmental debt are complementary in the long run and usually substitutes in the short run. Second, these predictions are empirically confirmed: in particular, a 1% increase in the public debt ratio leads to an increase of 0.74% in cumulative CO per capita in the long run. Our findings emphasize the difficulty of defining policies that jointly serve both the economic (fiscal) and the environmental goals, due to the short- and long-run conflicting environmental effects of policies that either reduce or do not constrain public debt.
Databáze: OpenAIRE
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