The impact of climate-related fiscal and financial policies on carbon emissions in G20 countries: A panel quantile regression approach

Paola D'Orazio and Maximilian W. Dirks

No 860, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper investigates the impact of climate-related fiscal and financial policies on CO2 emissions implemented by G20 countries in the period 2000-2017. The analysis show that the impact of various policy instruments is heterogeneous across the carbon emissions distribution. In particular, the effect of a green investment bank is significant across all percentiles and contributes to improving environmental quality. Moreover, our findings suggest that what matters is not the financial sector size per se or the amount of credit devoted to the private sector, but rather the type of finance. This suggests that policymakers and researchers should devote more effort to calibrate their policy instruments and develop an efficient policy mix to achieve climate change mitigation, especially in countries with high carbon emissions.

Keywords: mitigation strategies; financial regulation; green investment banks; carbon dioxide emissions; climate risks; green financey (search for similar items in EconPapers)
JEL-codes: E58 E62 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-ene, nep-env, nep-fdg and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:860

DOI: 10.4419/86788996

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