Journal article
Fiscal spending and the environment: Theory and empirics
Journal of environmental economics and management, Vol.62(2), pp.180-198
2011
Handle:
https://hdl.handle.net/2376/114705
Abstract
During economic crises, governments often increase fiscal spending to stimulate the economy. While the fiscal spending surge may be temporary, spending composition is often altered in favor of expenditures on social programs and other public goods which may persist over time. We model and measure the impact of fiscal spending patterns on the environment. The model predicts that a reallocation of government spending composition towards social and public goods reduces pollution. However, increasing total government spending without altering its composition does not reduce pollution. We empirically test these predictions for air and water pollutants showing that they are fully supported.
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Details
- Title
- Fiscal spending and the environment: Theory and empirics
- Creators
- Ramón López - 3125 Symons Hall, Department of Agricultural and Resource Economics, University of Maryland, College Park, MD 20740, USAGregmar I Galinato - 203C Hulbert Hall, School of Economic Sciences, Washington State University, Pullman, WA 99164, USAAsif Islam - 3108 Symons Hall, Department of Agricultural and Resource Economics, University of Maryland, College Park, MD 20740, USA
- Publication Details
- Journal of environmental economics and management, Vol.62(2), pp.180-198
- Academic Unit
- Economic Sciences, School of
- Publisher
- Elsevier Inc
- Identifiers
- 99900548322101842
- Language
- English
- Resource Type
- Journal article