Policy tools for sustainability: Evaluating the effectiveness of fiscal measures in natural resource efficiency

Abstract

Fiscal policies are crucial to resource management in a world struggling with natural resource sustainability. This paper examines the dynamic interaction of budgetary measures, natural resources, policy tools, sustainability, and tax incentives on green economic growth (GEG) in the BRICS states from 2000 to 2021.The research uses the CS-ARDL estimator to address variable slopes and cross-sectional dependencies. It evaluates how tax incentives, subsidies, and environmental levies affect the wise use of natural resources.Our findings from real-world case studies and empirical data across geographies and industries show that fiscal instruments are crucial to reorienting economic activity toward resource efficiency. We show how environmental levies internalized externalities, subsidies promoted renewable energy, and tax incentives encouraged green investments. It helps policymakers, corporations, and stakeholders understand how fiscal instruments can improve resource efficiency and advance the global agenda for sustainable natural resource management.