The climate change challenge and fiscal instruments and policies in the EU

Aristoklis Avgousti, Francesco Caprioli, Giacomo Caracciolo, Marion Cochard, Pietro Dallari, Mar Delgado-Téllez, João Domingues, Marien Ferdinandusse, Daniela Filip, Carolin Nerlich, Doris Prammer, Katja Schmidt and Anastasia Theofilakou

No 315, Occasional Paper Series from European Central Bank

Abstract: Fiscal policy plays a prominent role in climate change mitigation and adaptation. An optimal combination of revenue policies, in particular taxes, and expenditure policies, such as subsidies and investment, is essential in order to achieve greenhouse gas emissions targets. This paper analyses the main fiscal instruments in place in European Union Member States, focusing on specific issues, such as the fiscal impact of extreme weather events, the interaction between debt sustainability and climate change, the green investment gap and the distributional impact of climate policies. The paper aims to provide an overview of existing fiscal policies and of the main fiscal challenges for a comprehensive European climate change strategy. JEL Classification: H2, H5, H6, Q54, Q58, D63

Keywords: carbon tax; climate change; debt sustainability; extreme weather events; green investment; redistribution (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-agr, nep-eec, nep-ene and nep-env
Note: 1332270
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbops:2023315

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