Public Finances and Decarbonisation

Grégory Claeys; Marie Le Mouel; Simone Tagliapietra; Guntram B. Wolff; Georg Zachmann

doi:10.1017/9781009438353.005

4 - Public Finances and Decarbonisation

Published online by Cambridge University Press: 01 February 2024

Grégory Claeys ,

Marie Le Mouel ,

Simone Tagliapietra ,

Guntram B. Wolff and

Georg Zachmann

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Grégory Claeys: Affiliation:
Bruegel
Marie Le Mouel: Affiliation:
Bruegel
Simone Tagliapietra: Affiliation:
Bruegel
Guntram B. Wolff: Affiliation:
German Council on Foreign Relations
Georg Zachmann: Affiliation:
Bruegel

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Summary

This chapter discusses the role that fiscal policy can play in the transition to a carbon-neutral economy. In other words, it discusses how to design fiscal policy, both on the revenue and on the expenditure side, to reach net zero emissions by mid-century in a credible, growth- and distribution-friendly way. Furthermore, the chapter discusses how decarbonisation is likely to impact public finances, shedding light on what change might be required in tax revenues/expenditures, and if debt sustainability risks might arise from the green transition.

Keywords

public finances fiscal policy debt carbon pricing

Type: Chapter
Information: The Macroeconomics of Decarbonisation
Implications and Policies
, pp. 109 - 159

DOI: https://doi.org/10.1017/9781009438353.005 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2024

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4 - Public Finances and Decarbonisation

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