Greenlining: economic and environmental effects of government facilitated lending to sustainable economic activities in the Netherlands
Bert Scholtens
No 01E04, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)
Abstract:
Abstract: This paper analyzes the economic and environmental impact of a policy instrument that is related to the tax deductibility of interest returns and dividend yields from specified 'green' projects. We investigate this so-called 'Green Project Facility' in the Netherlands during 1995-1999. We analyze the effect on taxes, economic growth, employment, as well as on the emission of a number of gases and on solid waste production. We find that the economic effects in general are positive. However, the environmental effects are quite mixed. It is concluded that the policy instrument could be used much more effective.
Date: 2001
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