Fiscal spending and green economic growth: evidence from highly polluting Asian economic.

Abstract

The study examines the link between fiscal expenditure and green economic development in heavily polluting Asian nations. The conventional wisdom that environmental sustainability and economic progress are incompatible is contested in this research. The study found a strong positive link between green fiscal policy and long-term economic development, offering empirical support for using fiscal policy to promote green growth. With an emphasis on high-pollution sectors like manufacturing and energy, the study used sophisticated econometric approaches, such as panel data regression and Granger causality tests, to evaluate the data from a few Asian nations. The findings supported the idea that increased government investment in environmental protection programs and eco-friendly technology positively impacted green economic development. The results also highlight how governmental actions influence economic trajectories and aid in the shift to a sustainable economy. The report emphasizes the need for cross-level and cross-sector policy coordination, arguing that achieving significant green economic development with comprehensive, well-integrated green fiscal policies would be more straightforward. The study also highlights the need for international collaboration and assistance while acknowledging possible restrictions on fiscal expenditure in emerging nations. Policymakers, environmental economists, and other stakeholders who want to transition to a green economy while pursuing economic growth and development should take these conclusions seriously. The linkages among fiscal investment and green economic development in heavily polluting Asian nations are substantially established in this work, but it also highlights the need for additional study. Future research could benefit from examining these patterns in a broader range of situations and over extended periods, given the intricate interaction of variables driving fiscal policy and green growth.