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

Ullah, Sana; Majeed, Muhammad Tariq; Chishti, Muhammad Zubair

doi:10.1007/s11356-020-09859-x

Cited by 42 publications

(34 citation statements)

References 15 publications

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“…The degree of non-stationarity of the time series should be measured. In order to examine the data characteristics and avoid pseudo-regressions, a panel unit root test must be performed (Ullah et al, 2020 ). The panel unit root test developed from the time series unit root test uses the cross-sectional dimensional information in the panel framework to construct the test statistic, which has stronger testing power than the time series unit root test.…”

Section: Methodology and Datamentioning

confidence: 99%

The effects of nurturing pressure and unemployment on carbon emissions: cross-country evidence

Liu

Feng

2022

Environ Sci Pollut Res

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Section: Methodology and Datamentioning

confidence: 99%

The effects of nurturing pressure and unemployment on carbon emissions: cross-country evidence

Liu

Feng

2022

Environ Sci Pollut Res

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“…In this regard, empirical evidence has been provided showing that government expenditure has been found helpful in controlling consumption and production-based emissions [34]. Moreover, Ullah et al [35] investigated the asymmetrical effects of fiscal variables on environmental quality and found mixed evidence. For instance, increasing government expenditures reduced the environmental quality in some investigated countries and improved it in others.…”

Section: Introductionmentioning

confidence: 99%

The Fiscal and Monetary Policies and Environment in GCC Countries: Analysis of Territory and Consumption-Based CO2 Emissions

et al. 2022

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Expansionary monetary and fiscal policies are necessary for economic and environmental development. The present research studies the impact of monetary policy and fiscal policy on Territory-Based CO2 (TBC) and Consumption-Based CO2 (CBC) emissions in Gulf Cooperation Council (GCC) economies from 1990–2019. The cointegration is corroborated through various tests, and long-term relationships are found in both TBC and CBC models. Government expenditures have long-term positive effects on both TBC and CBC emissions and short-term positive effects on TBC emissions in the region. Money supply negatively affects the TBC and CBC emissions in the long run and positively affects TBC and CBC emissions in the short run. Hence, monetary policy needs a long time to have positive ecological effects in the GCC region. Moreover, fiscal policy in both the long and short run and monetary policy in the short run have scale effects in GCC economies. Therefore, we recommend reducing fiscal measures and encouraging monetary policy in the long run to have positive environmental outcomes in the region.

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“…Ullah, Majeed et al. (2020) and Ullah, Chishti et al. (2020) examined the impact of oil prices on carbon emission for top 10 carbon emitters using non‐linear framework.…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling the role of fiscal and monetary policy instruments on carbon emission in non‐linear framework: A case of emerging economy

et al. 2023

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India is the second most populous country in the world and stood at seventh rank in a major climate risk index in 2019, which is a grave concern for the Indian government, policymakers and environmentalists. Therefore, the present study examines the role of fiscal policy and monetary policy instruments along with select macroeconomic variables on carbon emission in India over the period 1971–2019 in the non‐linear framework. The outcome of the study reveals that the impact of fiscal and monetary policy instruments on carbon emission is asymmetric in nature. In addition, the positive and negative shocks in fiscal and monetary policy instruments have a positive and negative impact on carbon emissions, respectively. Based on the coefficients’ magnitude, the role of fiscal policy instruments has a more prominent effect on carbon emissions than monetary policy instruments. The findings of the study imply that the Indian government is required to implement green fiscal and monetary policies. Use fiscal policy to implement a ‘green tax ratio’ and a ‘green subsidy programme’ for manufacturers and investors to reduce CO2 emissions. A ‘green lending programme’ should be introduced for commercial banks by implementing monetary policy via the central bank.

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

Cited by 42 publications

References 15 publications

The effects of nurturing pressure and unemployment on carbon emissions: cross-country evidence

The effects of nurturing pressure and unemployment on carbon emissions: cross-country evidence

The Fiscal and Monetary Policies and Environment in GCC Countries: Analysis of Territory and Consumption-Based CO2 Emissions

Modelling the role of fiscal and monetary policy instruments on carbon emission in non‐linear framework: A case of emerging economy

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