Exploring the asymmetric effect of fiscal policy instruments in encountering environmental degradation: proposing an SDG framework for India.

Asian countries are facing difficulties in attaining sustainable development goals (SDGs), and India is not an exception to it, with environmental degradation being one of the primary issues. Therefore, a policy-level reorientation may be required to address it. From this standpoint, fiscal policy instruments may come in handy towards fully integrating the SDGs into its agenda. The present investigation designs an SDG framework for India that could serve as an example for other Asian nations. This study introduces a new investigation exploring the relationship between fiscal policy instruments and environmental quality in India by examining the environmental Kuznets curve (EKC) hypothesis from 1990 to 2021. A nonlinear autoregressive distributed lag (NARDL) model is applied for empirical examination. The findings indicate that positive and negative shocks in fiscal policy instruments have significant impact on carbon emissions in both the long and short run. The study has also found evidence of an "inverted U-shape" EKC for India. These results are valuable from a policy perspective for India and other Asian countries to address environmental issues. The study has also outlined potential outcomes that may benefit India's fiscal policy in resolving environmental issues and attaining better economic growth. In the end, the study proposes a policy framework that supports SDG 7, SDG 8, SDG 12, SDG 13, and SDG 17 objectives.

Are carbon emissions trading and green financial instruments synergistic? -Comprehensive quantitative research based on content analysis.

Coordinating policies is an essential guarantee for carbon emission reduction and sustainable development. Based on the theoretical framework of the policy paradigm, we quantitatively analyze 266 policy documents on promoting carbon emission trading and green financial policies from 2011 to 2022 using the content analysis research method. Based on the matching network of "policy objectives-policy tools," we analyze the synergistic characteristics of carbon emission trading policies and green financial policies in promoting carbon emission reduction targets and reveal the matching mode of "objectives-tools" of green financial policies by using social network analysis. It is found that, first, from the perspective of policy objectives, the main policy objectives of carbon emissions trading are to promote green innovation of enterprises, and the main policy objectives of green finance are to promote green development, which reflects the consistency and endogenous motivation of policy objectives. Secondly, command-control and market incentive policy tools are the main policy tools in the structure of policy tools. The proportion of public participation policy tools is small, and there is a structural asymmetry. Third, carbon emissions trading tools focus on supervision, adjustment, and platform construction. The green financial policy tools have the characteristics of guidance, public welfare, and externality. The two constitute a complementary, embedded, and integrated ' double synergy ' carbon emission reduction policy. Based on this, this paper puts forward some suggestions to promote policy coordination and provides a reference for China to achieve the dual carbon goal.

Green finance and corporate environmental investment: "Scale Up" or "Efficiency Up"?

The establishment of green finance reform and innovation (GFRI) pilot zone is an important measure of the Chinese government to urge enterprises to develop green transformation. This paper explores the impact of pilot policies in the GFRI pilot zone on corporate environmental investment. Based on 819 A-share listed enterprises from 2010 to 2020, our staggered difference-in-differences (staggered DID) estimation documents revealed that enterprises in the GFRI pilot zone significantly increased the corporate environmental investment efficiency but reduced the scale of corporate environmental investment.This conclusion remained robust after Propensity Scores Matching difference-in-differences (PSM-DID), replacing dependent variables, and shortening the time window. We contend that the increased research and development (R&D) expenditure and technological innovation are the potential mechanisms at work. Heterogeneity analysis showed that the establishment of GFRI improved the environmental investment efficiency of polluting enterprises but had no effect on green enterprises.Meanwhile, the effect of GFRI exhibited heterogeneity in the type of enterprise ownership. This paper evaluates the implementation effect of GFRI from the perspective of corporate environmental investment, and provides theoretical support and an empirical basis for green finance policy to serve China's green economy.

Fiscal agricultural expenditures' impact on sustainable agricultural economic development: Dynamic marginal effects and impact mechanism.

Sustainable agricultural economic development is the core task for achieving the objective of rural revitalization strategy in China, which cannot be separated from the support and guidance of fiscal policy, and agricultural industry integration is a key path for the fiscal promotion of sustainable agricultural economic development. This paper systematically examines the interaction mechanism between fiscal agricultural expenditures and sustainable agricultural economic development by using 31 provincial panel data in China from 2008 to 2020 and adopting a two-way fixed effect model, a panel quantile model, and a mediating effect model, respectively. The results show that the impact of fiscal agricultural expenditures on sustainable agricultural economic development is significantly positive, and appears a dynamic increasing trend with the agricultural development stage upgrading. Moreover, heterogeneity analysis shows that the effect of fiscal agricultural expenditures is more obvious for the samples in the central region and with a high share of primary industry. Further, a mediating effect test finds that agricultural industry integration plays a mediating mechanism between fiscal agricultural expenditures and sustainable agricultural economic development. Therefore, this paper proposes constructing a long-term investment mechanism for fiscal agricultural expenditures, formulating differentiated fiscal support policies for agriculture, and prioritizing support for agricultural industry integration, which provides theoretical support and policy inspiration for promoting sustainable agricultural economic development.

The innovation effect of green finance reform-based on the green innovation vitality perspective.

In order to develop green finance and realize the coordinated development of environment and economy, China set up green finance reform and innovation pilot zones in 2017. Taking the establishment of green finance reform and innovation pilot zones in China as an exogenous shock and based on the synthetic control method, this paper explores the impact of the pilot policies on green innovation vitality by taking five pilot provinces as the experimental group and 25 provinces without pilot policies as the control group. It is found that the pilot policy significantly enhances the level of green innovation dynamism in the pilot regions, but due to the different policy focuses, the innovation effect is immediate in Zhejiang, Guangdong, Guizhou, and Jiangxi, while the policy effect is significantly lagging behind in Xinjiang; government incentives are an important channel through which the policy enhances the green innovation dynamism; and the above findings are more significant in the samples of substantial green innovation dynamism and the eastern region. In addition, the extended economic consequences analysis shows that the pilot policy can significantly improve energy efficiency in the pilot region with a significant time lag. The findings of the study not only provide empirical evidence for the implementation effect of the green finance pilot policies, but also have practical implications for improving the green finance system and replicating and extending the green finance reform and innovation pilot zones.

The effect of green fiscal policy on green technological innovation: evidence from energy saving and emission reduction fiscal policy.

The "National Comprehensive demonstration of Energy Saving and Emission Reduction Fiscal Policy" (ESER policy) is a green fiscal policy to facilitate China's green sustainable development. Green sustainable development is facilitated by green technological innovation. Thus, evaluating the influence of the ESER policy on green technological innovation is essential. This study employs the difference-in-differences model to assess the ESER policy effects. The findings suggest that the ESER policy facilitates green technological innovation, but the policy effect has inhibited green technology innovation in neighboring cities. Mechanism analysis indicates that this policy effect is realized through increasing scientific research investment intensity and promoting industrial structure upgrading. Heterogeneity analysis indicates that this policy is effective in facilitating green technological innovation when performed in eastern, non-old industrial base, non-resource-based, and high green innovation level cities. In addition, the ESER policy implemented in conjunction with innovation policy can be more effective in promoting green technological innovation. These results provide valuable insights for improving the ESER policy and offer helpful guidelines for green fiscal policymaking in other countries.

Quantifying digital economy and green initiatives for carbon neutrality targets: a Kilian bias-adjusted bootstrap model evaluation of China economy.

Digitalization has emerged as a new hope for low-carbon sustainable economic growth after its successful trial during the COVID-19 measures. Therefore, both developed and developing economies focus on digitalization to cope with carbon neutrality targets. Thus, this study attempted to generate a meaningful relationship between the digital economy and green energy, innovation, and environmental tax policy to capture the role of factors in acquiring carbon neutrality. For the abovementioned objectives, modern econometric methods, such as the Kilian bias-adjusted bootstrap, were adopted to evaluate the Chinese dataset between 1990 and 2021. The results indicate that the study factors play a significant role in acquiring carbon neutrality in the long-term Chinese economy. Furthermore, quantile autoregressive distributed lag model (QARDL) indicates that all the factors influence carbon neutrality in various quantiles. Consequently, the digital economy, green energy and innovation, and environmental taxes significantly assist in attaining carbon neutrality in the long term, and the ecological Kuznets curve prevails in the economy. Therefore, radical and wide-ranging policy implications are required in many areas including environmental restrictions, digital economy promotion, green and sustainable technologies, and clean energy sources.

An evolutionary game theory-based study examining the relationship between fiscal policy, stability of farmers' cooperatives, and environmentally friendly digital management.

To increase the degree of implementation of the rural revitalization strategy, it is crucial to conduct a scientific investigation of the relationship between fiscal policy, fiscal decentralization, green digital management, and contract selection. This research develops an analytical framework for the application of fiscal policy and the choice of cooperative association contracts based on the contract theory. On the basis of a theoretical analysis of the external factors that influence the choice of residents' cooperative association contract and behavior, it goes on to investigate the interest game relationship and stability of three different cooperative associations (production type, service type, and industrial chain type). Additionally, it runs an empirical test using survey information from cooperative associations in China's Gansu Province. The findings indicate that the cooperative association is more likely to select the factor contract model depending on the strength of the fiscal policy support, the union's brand influence, and the regional market share change of the primary products. Evolutionary equilibrium is inhibited by the association's input costs, but a stable contract is created more favorably the more average the cost distribution is. The stability of the contract and its detrimental effects on pro-environmental behavior are worse the more damage other residents' breaches of the contract have caused. The research findings in this paper may serve as a basis for decision-making and a source of information for encouraging the high-quality growth of cooperative groups.

Fiscal policy, green finance, and low carbon transformation nexus: a novel study unleashing the synergistic effects of carbon reduction and pollution in China.

Under the simultaneous demands of combating environmental pollution and decreased carbon emissions, it is critical to investigate the combined effect of agricultural contamination reduction and fiscal policy carbon reduction to support and promote green agriculture and low-carbon transformation. Based on provincial panel data of 2007 to 2020 in China, this paper employs the spatial Dubin model to empirically examine the pollution reduction and carbon reduction effects of fiscal policies supporting agriculture, as well as calculating the synergistic effect of pollution reduction and carbon reduction. Our study's findings reveal that non-point source agricultural pollution and agricultural carbon emissions have a tendency of growing and subsequently reducing, such as increasing from 2007 to 2015 and decreasing from 2016 to 2020. Second, results demonstrate that agricultural carbon emissions and agricultural pollution have a positive geographical dependency in each province, and fiscal policies supporting agriculture have high-high and low-low spatial clustering features. Furthermore, fiscal policies that promote agriculture can lower local agricultural carbon emissions and pollution while also having a considerable beneficial spillover impact on neighboring provinces. According to the study findings, the fiscal policy for supporting agriculture has a negative pollution reduction impact and a positive synergistic effect, resulting in a synergistic effect of agricultural pollution reduction and carbon reduction. The outcomes of this study can serve to promote carbon-reduction measures and provide recommendations for future policy development.

Assessing the role and driving mechanisms of the green financial reform on urban energy consumption and pollution emissions: a policy evaluation from the generalized synthetic control method.

The Green Financial Reform and Innovation Pilot Areas (GFRIPA) policy is a key institutional arrangement that enables China's green finance to advance from theory to practice. Few studies have quantitatively evaluated the policy's environmental performance. This study uses a generalized synthetic control method (GSCM) alongside panel data from Chinese prefecture-level cities since 2007 to assess the effects of the GFRIPA policy on energy consumption and pollution emissions and to pinpoint the underlying mechanisms. Results show that establishing the GFRIPA significantly reduces energy consumption and pollution emissions, and that the effect emerges immediately in the policy's issuance year. Possible mechanisms consist of the increase in urban green innovation, the ease of financing constraints, the optimization of industrial structure, and the enhancement of environmental governance. Heterogeneity analyses reveal that policy effects are more profound in cities with a higher degree of marketization and a higher level of education. The findings provide valuable insights into consistently promoting the GFRIPA policy to meet environmental goals for energy conservation and pollution reduction and ultimately advance green economies in developing nations.

Effectiveness of NCD-Related Fiscal Policies: Evidence from the Pacific.

Obesity in Pacific Island countries (PICs) has hit crisis levels, and the consequent high non-communicable disease (NCD) burden is devastating for their developing economies. Nutrition transitions from traditional, plant and seafood diets to a dependence on processed foods are at the core of the obesity and NCD epidemic in PICs. Fiscal policies are widely promoted as an effective mechanism to reduce consumption of unhealthy foods and increase consumption of fruits and vegetables. However, there are little data to evaluate the effectiveness of these policies as rates of NCDs and obesity in PICs continue to rise. This study used an online survey to recruit 4116 adults from six PICs: Fiji, Kiribati, Samoa, Solomon Islands, Tonga and Vanuatu. The study measured the consumption of and household access to sugar-sweetened beverages, ultra-processed packaged snacks, fruits and vegetables and attitudes on food prices and unhealthy eating. The study also assessed the relationship between consumption of these foods and drink and (1) household access, (2) price as a food choice motive, and (3) unhealthy eating attitudes. This study provides novel data on food-related behaviours in PICs, offers insights into the potential impact of NCD-related fiscal policies on food consumption and identifies other variables of interest.

Effectivenes of incentive constraint policies in enhancing green bond credit rating and certification: A theoretical and empirical study.

This paper aims to effectively reduce CO2 emissions by examining the impact of three distinct incentive and constraint policies on the quality of rating and certification information in China's green bond issuance market. To accomplish this, the government has implemented incentives, while regulators have introduced constraints to curb the spread of inflated rating and certification information. We build on the integrated rating and certification regulation mechanism by presenting a two-stage Stackelberg game model that involves four key participants: the China Securities Regulatory Commission, local governments, green evaluation and certification agencies, and credit rating agencies. We incorporate environmental effects indicators into the expected utility of rating and certification agencies to investigate the equilibrium conditions under three policy scenarios: a single financial incentive policy, a single regulatory constraint policy, and a combined incentive and constraint policy. The paper employs Stackelberg game theory to analyze how different policies mitigate the occurrence of "inflated" ratings and "greenwashing" in certifications. Numerical analysis is conducted to validate the theoretical findings. Moreover, we assess the impact of these policies on the quality of rating and evaluation information, using data from China's green bond issuance market between 2016 and 2021. Our research offers valuable management insights and regulatory recommendations for both regulators and local governments.

Fiscal policy and economic growth in Sub-Saharan Africa: Do governance indicators matter?

This study investigated the linkage between fiscal policy-governance indicators interaction and economic growth in 36 Sub-Saharan Africa (SSA) countries from the periods of 2011-2021 inclusive. The study employed two-step system Generalized Method of Moment (GMM) estimation technique due to its practical relevance in panel data analysis. The data obtained from World Bank and World governance indicator was checked for unit root through the help of Im Pesaran Shin and Levin-Lin-Chu unit-root tests, and the result revealed that data was stationary and safe for further analysis. The result of the study also presented that direct economic effect of fiscal policy is negative and significant in SSA countries. However, the interaction of fiscal policy with governance indicators has positive and significant effect on economic growth. Accordingly, before interacting with governance indicators, a percentage change in fiscal policy leads to a 0.20 percent decline in economic growth of SSA countries. Contrary to this, the interactive coefficient of fiscal policy and government effectiveness (0.019) and interactive coefficient of fiscal policy and corruption control (0.0046) are found to be positive and significant. Further, the finding of the study revealed that fiscal policy-voice and accountability interaction coefficient (0.011) and interactive coefficient of fiscal policy-regulatory qualities (0.014) are positively and significantly affecting economic growth of SSA countries. The policy implication is that policy makers in SSA countries should encourage economic policies that improve government effectiveness, strong corruption control, clean public services and better regulatory qualities.

Fiscal policies and regulations for healthy diets in Sri Lanka: an analysis of the political economy of taxation and traffic light labelling for sugar-sweetened beverages.

BACKGROUND: Unhealthy dietary patterns significantly contribute to rising non-communicable diseases (NCDs) in Sri Lanka. The government has implemented policy measures to promote healthy dietary patterns, including the traffic light labelling (TLL) system for sugar-sweetened beverages (SSBs) in 2016 and taxation on SSBs in 2017. OBJECTIVES: To analyse how ideas, institutions, and power dynamics influence the formulation and implementation of these two interventions, and to identify strategies for public health actors to advocate for more effective food environment policies in Sri Lanka. METHODS: This study drew on Kingdon's theory of agenda-setting and Campbell's institutionalist approach to develop the theoretical framework. We examined the political economy at the policy development and implementation stages, adopting a deductive framework approach for data collection and analysis. Data were collected from documents and key informants. RESULTS: NCDs and nutrition are recognised and framed as important policy issues in health-sector policy documents, and the SSB tax and TLL system are seen as means of improving diets and health. Sri Lanka's commitment to addressing NCDs and nutrition-related issues is evident through these policies. The Ministry of Health led policy development, and key stakeholders were involved. However, there are opportunities to learn and strengthen policy in Sri Lanka and elsewhere. Limited involvement and commitment of some stakeholders in developing national policies, industry interferences, and other gaps resulted in weaker policy design. Gender considerations were also given minimal attention in policy formulation and implementation. CONCLUSIONS: To enhance the effectiveness of the policies and regulations to promote healthy diets in Sri Lanka, comprehensive policy coverage, multistakeholder involvement and commitment to national policies, balanced power dynamics, technical feasibility, government commitment backed with high-level political support, awareness, and knowledge creation, managing industry interferences, integrating gender considerations are crucial factors.

Green fiscal policy and enterprise green innovation: evidence from quasi-natural experiment of China.

We aim to study the impact of green fiscal policy on enterprise green innovation by applying a time-varying difference-in-difference (DID) model, and treat the comprehensive demonstration city of fiscal policy for energy conservation and emission reduction (CPEE) in China as a quasi-natural experiment. The results show that the CPEE can significantly improve enterprise's green innovation performance of pilot area. This net policy effect is valid after a series of robustness tests to control for various potential confounding factors. Heterogeneity analysis reveals that the effect of CPEE is stronger for state-owned enterprises and enterprises in high energy consumption industries or industries with higher industrial concentration. In addition, the effect of CPEE is various among different categories of green patents, which is stronger for the types of alternative energy production category, waste management category, administrative supervision and design category. The mechanism test indicates that the CPEE can improve the green innovation performance by increasing enterprise' investment in research and development, promoting territorial industrial transformation and upgrading, and enhancing enterprise executives' environmental awareness. To achieve the carbon peaking and carbon neutrality goals, the green enabling role of fiscal reform pilot policy in transition economies and the applicability of localized policies should be excavated.

Has green finance boosted regional electricity consumption? Based on nighttime light data.

Green finance is gradually becoming essential to enhancing regional electricity consumption. This paper uses panel data from 30 Chinese provinces and regions from 2011 to 2021 and develops a system Generalized Method of Moments (GMM) and a mediating effect model to test the effects of green finance on regional electricity consumption level and the mechanism of action. The results show that green finance significantly boosts regional electricity consumption level, which still holds after various robustness tests. In terms of heterogeneity, the promotion effect of green finance on electricity consumption is significantly more substantial in the Eastern regions than in the central and western regions; the regions with a higher level of urbanisation are more robust than those with a lower level of urbanisation, and the regions with a higher level of the advanced industrial structure are stronger than those with a lower level. In terms of impact mechanisms, both foreign direct investment and green technology innovation have partial mediating effects on the impact of green finance on regional electricity consumption level. Green finance raises the level of regional electricity consumption by increasing the level of green technology innovation. At the same time, foreign direct investment has a "substitution effect" on the impact of green finance on regional electricity consumption. Therefore, it is essential to increase green financial policy support to raise regional electricity consumption, help upgrade electricity consumption, and help achieve the "double carbon goal".

Do green financial and non-financial policies achieve the carbon neutrality target?

Due to the pressing need to combat climate change, reaching carbon neutrality-defined as having net-zero greenhouse gas emissions-has elevated to the status of a worldwide priority. While non-financial policies concentrate on regulation and incentives to promote environmentally friendly behavior, green financial policies strive to move investment toward low-carbon and sustainable initiatives. Therefore, the study aims to examine how green financial and non-financial policies affect carbon neutrality in China from 1995 to 2021. For analyzing the linear and nonlinear estimates, the study has employed the autoregressive distributed lag (ARDL) and nonlinear autoregressive distributed lag (NARDL) frameworks. The findings suggest that in the linear framework, green finance policies and environmental policy stringency encourage renewable energy consumption and discourage CO2 emissions. In the nonlinear framework, the positive shocks in the green finance policies and environmental policy stringency increase renewable energy consumption, and the negative shock in both types of policies discourages renewable energy consumption. In the CO2 model, a positive shock in green finance policies and environmental policy stringency reduces CO2 emissions, and a negative change in both these policies is insignificant. Since the positive and negative changes in both these policies significantly and differently impact renewable energy consumption and CO2 emissions; thus, policymakers should take into account positive and negative changes in both these policies while formulating policies for carbon neutrality targets in China.

Does the implementation of green finance regulation promote the high-quality development of enterprises? Evidence from a quasi-natural experiment in China.

The improvement of enterprise total factor productivity and labor productivity is the micro-embodiment of high-quality economic development. Green finance relies on the dual functions of resource allocation and environmental regulation to guide enterprises to adjust their mode of operation through incentive and restraint mechanisms, attach importance to energy conservation and environmental protection, and guide enterprises to develop with high quality. Taking the construction of the green financial supervision system in 2016 as a quasi-natural experiment, we constructed a difference-in-difference model to investigate the impact and mechanism of green finance on the high-quality development of enterprises, based on the panel data of Chinese A-share listed companies from 2006 to 2020. The results show that the implementation of green finance effectively promotes the high-quality development of enterprises. This promotion effect is heterogeneous from perspectives of enterprise-specific characteristics, executive education background, and environmental regulation intensity. The influence mechanisms mainly rely on tightening financial constraints, upgrading the level of green technology innovation, and improving the quality of internal control. These findings provide an important decision-making reference for better implementing green finance policies and promoting high-quality economic development under the green and low-carbon concept and carbon peak carbon neutrality goals.

Mitigating the economic impact of COVID-19 on wind energy: assessing the role of green finance policies and the levelized cost of energy.

This study examines the impact of the COVID-19 pandemic on wind and green energy, with a focus on controlling the rising cost of wind energy using the levelized cost of energy (LCOE) method. The objectives include exploring green financial policies to mitigate the pandemic's effects and analyzing the cost of wind energy in China before and after the outbreak. The findings reveal a decrease in wind energy costs and increased consumption during the COVID-19 crisis, attributed to the role of green financing. The study emphasizes the importance of wind energy growth for achieving CO2 reduction goals and highlights the need for green finance options to mitigate the economic impact of the pandemic on wind energy production. The research also suggests implications for stakeholders, such as promoting green financing and wind energy resource development. Furthermore, the study emphasizes the significance of collaboration, policy reforms, geographical spillover effects, and environmental regulations in establishing a sustainable green financial system and enhancing green innovation. Future research directions include exploring data-driven approaches, addressing endogeneity concerns, and validating findings through enhanced indices and data collection.