@article{Carnazza:339126,
      recid = {339126},
      author = {Carnazza, Giovanni and Renström, Thomas I.  and Spataro,  Luca },
      title = {Is public debt environmentally friendly? The role of EU  fiscal rules on environmental quality: An empirical  assessment},
      address = {2023-12-24},
      number = {2395-2024-009},
      series = {26.2023},
      pages = {30},
      month = {Dec},
      year = {2023},
      abstract = {The EU has embarked on multiple initiatives reflecting its  commitment to environmental enhancement and sustainable  transitions. Notable among these are the European Green  Deal and the NextGenerationEU recovery plan, both pivotal  in fostering eco-friendly policies and sustainable  practices within the region. Conversely, the fiscal rules  within the EU, designed to manage budgetary deficits and  debt-to-GDP ratios, may pose challenges to the  implementation of fiscal measures targeted at achieving  environmental quality objectives. These regulatory  constraints potentially curtail the fiscal space available  for policies aligned with the environmental goals set forth  by the EU. To address this issue, using a panel of 27  European member countries observed annually from 1995 to  2021, we investigate the impact of two different indicators  on the overall carbon intensity: on the one hand, the  implicit tax rate on energy reduces environmental  pollution; on the other hand, an increase in the stringency  of the European fiscal framework and/or the debt-to-GDP  ratio increase carbon intensity. From a policy point of  view, our outcomes stress the importance of shaping  national and European regulations to foster more  sustainable environmental development.},
      url = {http://ageconsearch.umn.edu/record/339126},
      doi = {https://doi.org/10.22004/ag.econ.339126},
}