Fiscal and economic consequences of a net-zero transition in Spain

Álvaro Carbonell Rodríguez, Jean Fouré and Elisa Lanzi

No 250, OECD Environment Working Papers from OECD Publishing

Abstract: To meet the goal of net-zero emissions by 2050, Spain will need to take further climate action in the years ahead. Enhanced policy measures, such as taxes, subsidies and standards, will have implications for the public budget and for the economy. This paper quantifies these implications by comparing two scenarios developed with the ENV-Linkages model: a baseline with current policies, and a net-zero scenario in which more ambitious climate policy measures are implemented to reduce CO2 emissions. The analysis shows that ambitious climate action and economic growth can go hand-in-hand. While the consequences for the public budget will be strongly influenced by the chosen climate policy instruments, the findings illustrate that the changes in net fiscal revenues induced by additional climate policy can be small compared to the overall size of government revenues in 2050.

Keywords: climate change mitigation; computable general equilibrium models; net-zero; public budget (search for similar items in EconPapers)
JEL-codes: C68 H20 H23 H61 Q43 Q54 (search for similar items in EconPapers)
Date: 2024-10-10
New Economics Papers: this item is included in nep-eec, nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:oec:envaaa:250-en

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