The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis
Fiscal policy is an essential tool that policymakers use for guiding the economy. Thus, the effects of fiscal policy may affect many aspects of our lives, including the impact of carbon dioxide (CO<sub>2</sub>) emissions. This article investigates the role of fiscal policy, in addition t...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-02-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/16/5/2215 |
| _version_ | 1797615471180120064 |
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| author | Muhammad Mar’I Mehdi Seraj Turgut Tursoy |
| author_facet | Muhammad Mar’I Mehdi Seraj Turgut Tursoy |
| author_sort | Muhammad Mar’I |
| collection | DOAJ |
| description | Fiscal policy is an essential tool that policymakers use for guiding the economy. Thus, the effects of fiscal policy may affect many aspects of our lives, including the impact of carbon dioxide (CO<sub>2</sub>) emissions. This article investigates the role of fiscal policy, in addition to gross domestic product (GDP), innovation, and financial development, in mitigating CO<sub>2</sub> emissions in the context of the Environmental Kuznets Curve theory in the Group of Twenty (G20) countries from 1995 to 2019. The study implied the autoregressive distributed lag of pooled mean group (ARDL-PMG) approach to analyze the suggested model. The results revealed the validity of the model for the G20 countries, as well as a long-run cointegration between the study variables. The results also showed that fiscal policy is associated positively with CO<sub>2</sub> emissions. Hence, we recommend reconsidering the applied financial policy, redirecting it to support clean energy projects, provide incentives for projects combating environmental degradation, and relying on environmentally friendly energy. |
| first_indexed | 2024-03-11T07:26:47Z |
| format | Article |
| id | doaj.art-bc3f351a66d4480a8dac42db1f0eff00 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T07:26:47Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-bc3f351a66d4480a8dac42db1f0eff002023-11-17T07:35:44ZengMDPI AGEnergies1996-10732023-02-01165221510.3390/en16052215The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve HypothesisMuhammad Mar’I0Mehdi Seraj1Turgut Tursoy2Department of Banking and Finance, Near East University, Nicosia 99138, CyprusDepartment of Economics, Near East University, Nicosia 99138, CyprusDepartment of Banking and Finance, Near East University, Nicosia 99138, CyprusFiscal policy is an essential tool that policymakers use for guiding the economy. Thus, the effects of fiscal policy may affect many aspects of our lives, including the impact of carbon dioxide (CO<sub>2</sub>) emissions. This article investigates the role of fiscal policy, in addition to gross domestic product (GDP), innovation, and financial development, in mitigating CO<sub>2</sub> emissions in the context of the Environmental Kuznets Curve theory in the Group of Twenty (G20) countries from 1995 to 2019. The study implied the autoregressive distributed lag of pooled mean group (ARDL-PMG) approach to analyze the suggested model. The results revealed the validity of the model for the G20 countries, as well as a long-run cointegration between the study variables. The results also showed that fiscal policy is associated positively with CO<sub>2</sub> emissions. Hence, we recommend reconsidering the applied financial policy, redirecting it to support clean energy projects, provide incentives for projects combating environmental degradation, and relying on environmentally friendly energy.https://www.mdpi.com/1996-1073/16/5/2215fiscal policycarbon dioxideEnvironmental Kuznets CurveG20ARDL-PMG |
| spellingShingle | Muhammad Mar’I Mehdi Seraj Turgut Tursoy The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis Energies fiscal policy carbon dioxide Environmental Kuznets Curve G20 ARDL-PMG |
| title | The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis |
| title_full | The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis |
| title_fullStr | The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis |
| title_full_unstemmed | The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis |
| title_short | The Role of Fiscal Policy in G20 Countries in the Context of the Environmental Kuznets Curve Hypothesis |
| title_sort | role of fiscal policy in g20 countries in the context of the environmental kuznets curve hypothesis |
| topic | fiscal policy carbon dioxide Environmental Kuznets Curve G20 ARDL-PMG |
| url | https://www.mdpi.com/1996-1073/16/5/2215 |
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