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Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries

Environmental risks, in particular climate change and environmental pollution, are among the key challenges faced by modern governments nowadays. Environmental risks are associated with specific costs and expenditures necessary to mitigate their negative effects. In this context, the financial syste...

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Autores principales: Zioło, Magdalena, Kluza, Krzysztof, Kozuba, Jarosław, Kelemen, Miroslav, Niedzielski, Piotr, Zinczak, Paweł
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7344526/
https://www.ncbi.nlm.nih.gov/pubmed/32575576
http://dx.doi.org/10.3390/ijerph17124425
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author Zioło, Magdalena
Kluza, Krzysztof
Kozuba, Jarosław
Kelemen, Miroslav
Niedzielski, Piotr
Zinczak, Paweł
author_facet Zioło, Magdalena
Kluza, Krzysztof
Kozuba, Jarosław
Kelemen, Miroslav
Niedzielski, Piotr
Zinczak, Paweł
author_sort Zioło, Magdalena
collection PubMed
description Environmental risks, in particular climate change and environmental pollution, are among the key challenges faced by modern governments nowadays. Environmental risks are associated with specific costs and expenditures necessary to mitigate their negative effects. In this context, the financial system plays a significant role, particularly the public financial system, which allocates and redistributes public resources and has an impact on market participants by imposing environmental taxes. This study assessed the interdependence between environmental degradation and public expenditure, financial sector development, environmental taxes, and related socioeconomic policies. The aim was to diagnose and define the relationship between environmental degradation and sustainable fiscal instruments used in the financial system. The original research approach adopted in the study is the inclusion of variables representing a sustainable approach to assessment of the financial system. Two groups of European Union countries were analyzed for the period 2008–2017, namely, converging economies from Central and Eastern Europe and the largest developed economies of Western Europe. The authors found a strong relationship between greenhouse gas emissions and fiscal instruments, especially expenditure on research and development, and the development of the financial sector. In the case of environmental taxes, their impact differed depending on the country, being predominantly beneficial in countries with higher greenhouse gas emissions but unfavorable in countries with lower emissions levels.
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spelling pubmed-73445262020-07-09 Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries Zioło, Magdalena Kluza, Krzysztof Kozuba, Jarosław Kelemen, Miroslav Niedzielski, Piotr Zinczak, Paweł Int J Environ Res Public Health Case Report Environmental risks, in particular climate change and environmental pollution, are among the key challenges faced by modern governments nowadays. Environmental risks are associated with specific costs and expenditures necessary to mitigate their negative effects. In this context, the financial system plays a significant role, particularly the public financial system, which allocates and redistributes public resources and has an impact on market participants by imposing environmental taxes. This study assessed the interdependence between environmental degradation and public expenditure, financial sector development, environmental taxes, and related socioeconomic policies. The aim was to diagnose and define the relationship between environmental degradation and sustainable fiscal instruments used in the financial system. The original research approach adopted in the study is the inclusion of variables representing a sustainable approach to assessment of the financial system. Two groups of European Union countries were analyzed for the period 2008–2017, namely, converging economies from Central and Eastern Europe and the largest developed economies of Western Europe. The authors found a strong relationship between greenhouse gas emissions and fiscal instruments, especially expenditure on research and development, and the development of the financial sector. In the case of environmental taxes, their impact differed depending on the country, being predominantly beneficial in countries with higher greenhouse gas emissions but unfavorable in countries with lower emissions levels. MDPI 2020-06-19 2020-06 /pmc/articles/PMC7344526/ /pubmed/32575576 http://dx.doi.org/10.3390/ijerph17124425 Text en © 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Case Report
Zioło, Magdalena
Kluza, Krzysztof
Kozuba, Jarosław
Kelemen, Miroslav
Niedzielski, Piotr
Zinczak, Paweł
Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title_full Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title_fullStr Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title_full_unstemmed Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title_short Patterns of Interdependence between Financial Development, Fiscal Instruments, and Environmental Degradation in Developed and Converging EU Countries
title_sort patterns of interdependence between financial development, fiscal instruments, and environmental degradation in developed and converging eu countries
topic Case Report
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7344526/
https://www.ncbi.nlm.nih.gov/pubmed/32575576
http://dx.doi.org/10.3390/ijerph17124425
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