Delivering green economy in Asia: The role of fiscal instruments

Abstract

Abstractmillions of poor out of vicious cycle of poverty, but that performance has come at a price. The unprecedented growth that we witness today is also rapidly driving resource consumption to unsustainable levels. Local production and consumption-led growth is causing a considerable increase in external costs such as deforestation, and the knock-on effects such as increased emissions, including greenhouse gas (GHG); depletion of non-renewable resources; pollution of rivers; desertification; flooding and long term climate change. Currently, the region accounts for about 40% of GHG emissions, which is expected to exacerbate with the ongoing rapid industrialization and urbanization. By 2030, if the business-as-usual scenario persists, rise to almost 50%. Given the rapidly increasing resource use and associated environmental externalities, the governments in the region are becoming increasingly interested in pursuing the transition to a green economy as it helps achieve a better balance between the environment, the economy, and social welfare. Asia, when compared to the economies of other regions, has the highest rate of policy innovations that help transition to a green economy. However, for a region as big as Asia to make timely and sustainable transition to green economy, fiscal instruments that facilitate transition to a green economy will have to be adopted in a sufficiently large scale. In this paper, we look at the fiscal instruments that are currently adopted in Asia and their effectiveness in decoupling economic growth from emissions, pollution, and resource use, and advancing economic and social well-being. We will compare the design characteristics that influence the potential impact of these instruments and outline incentives and strategies needed to tackle the barriers for widespread adoption of effective fiscal instruments.

Examining the asymmetric effects of fiscal policy instruments on environmental quality in Asian economies

“…According to an estimate, the coal could account for 50-70% of new power supply in Asia (International Energy Agency, 2012). Asia as a region is responsible for about 40% of global greenhouse gas emissions, which can escalate up to 50% if sustainable measures are not adopted (Dulal et al 2015). Thus, Asian economies are increasingly getting trapped in pollutionconcentrated development routes.…”

“…There is the only study that explores the scope of fiscal policy instruments to manage the environmental quality of Asian countries. Dulal et al (2015) provided an exploratory analysis of fiscal policy and environmental quality. The study provided facts about environmental changes in the region and concludes that the region is increasingly getting locked in carob-intensive development paths.…”

A Study on Green Economy Indicators and Modeling: Russian Context

“…Funding volumes for each subsystem is an indicator of the current state of the "financing" element, and a change in volume characterizes the process dynamics as shown by Jin, Han [26] and Monasterolo, Raberto [27]. Fiscal stimulation of green industries is also very important, and many scientists argue about this fact; Dulal, Dulal, Yadav, Durdyev, Zavadskas, Thurnell, Banaitis, Ihtiyar [28,29].…”

The Implementation of the Green Economy Concept at the Level of the Agglomeration: Russian Experience of Regional and Municipal Interests Harmonization

“…Представления об основах «зеленой» экономики и путях ее формирования присутствуют в документах прогностического характера различных европейских стран Pociovălișteanu et al, 2015), стран Азиатско-Тихоокеанского региона (Dulal et al, 2015) и СНГ (Розенберг и Кудинова, 2012; Терешина и Дегтярева, 2012; Бочко, 2014), но существенно отличаются. Анализ отечественных и зарубежных источников показывает, что в современной науке подходы к пониманию и трактовке термина «зеленой» экономики неоднозначны и иногда противоречивы.…”