Green Economic Growth: A Global Analysis of Fiscal Expenditures, Institutional Quality, and Stock Markets

Icha Aulia Putri; Luluk Mushfiroh; Hwihanus Hwihanus

doi:10.47134/jees.v1i3.345

Authors

Icha Aulia Putri Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945 Surabaya
Luluk Mushfiroh Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945 Surabaya
Hwihanus Hwihanus Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945 Surabaya

DOI:

https://doi.org/10.47134/jees.v1i3.345

Keywords:

Green Economic Growth Development, Fiscal Expenditures, Institutional Quality, Stock Market

Abstract

Green economic growth is the main focus in achieving sustainable development throughout the world. This study aims to conduct a global analysis of fiscal spending, institutional quality, and stock markets in relation to green economic growth. Through a holistic approach, this research explores the complex relationship between these three factors and their impact on sustainable economic growth. By considering various relevant variables and indicators, this study provides an in-depth understanding of the factors influencing the transition to a green economy. Well-directed fiscal spending can encourage investment in green technologies and green infrastructure, while good institutional quality ensures effective and fair policy implementation. Additionally, the stock market plays an important role in providing capital to companies focused on green innovation. It is hoped that the results of this analysis will provide valuable insights for policy makers, economic practitioners and other stakeholders in designing sustainable and environmentally friendly economic development strategies. The findings of this study show that synergy between prudent fiscal policy, strong institutions, and dynamic stock markets is critical to driving green economic growth. Thus, this study has the potential to make a significant contribution to advancing the sustainable development agenda at the global level. The resulting conclusions can form the basis for strategic decision-making that supports the transition to a green economy, as well as help direct investment and public policy in a more sustainable direction.

References

Akai, N. (2024). Evidence-based policy making in Japan’s public expenditure: compatibility of fiscal health and investing for the future. Asia Pacific Business Review, 30(3), 514–527. https://doi.org/10.1080/13602381.2024.2320543

Chen, J. (2023). The impact of fiscal technology expenditures on innovation drive and carbon emissions in China. Technological Forecasting and Social Change, 193. https://doi.org/10.1016/j.techfore.2023.122631

Chen, S. (2023). Effect of Fiscal Expenditure for Supporting Agriculture on Agricultural Economic Efficiency in Central China—A Case Study of Henan Province. Agriculture (Switzerland), 13(4). https://doi.org/10.3390/agriculture13040822

Cheng, S. (2024). The unanticipated role of fiscal environmental expenditure in accelerating household carbon emissions: Evidence from China. Energy Policy, 185. https://doi.org/10.1016/j.enpol.2023.113962

Dado Fabrice Degbedji, Armand FrÃ©juis Akpa, Augustin Foster Chabossou, Romanus Osabohien, Institutional quality and green economic growth in West African economic and monetary union, Innovation and Green Development, Volume 3, Issue 1, 2024, 100108, ISSN 2949-7531.

Deng, H. (2023). Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production. Applied Energy, 334. https://doi.org/10.1016/j.apenergy.2023.120666

Diana Abu-Ghunmi, Lina Abu-Ghunmi, Basheer Ahmad Khamees, Keith Anderson, Mohammad Abu Gunmi, Green economy and stock market returns: Evidence from European stock markets, Journal of Open Innovation: Technology, Market, and Complexity, Volume 9, Issue 3, 2023, 100146, ISSN 2199-8531.

Fang, G. (2024). How does green fiscal expenditure promote green total factor energy efficiency? — Evidence from Chinese 254 cities. Applied Energy, 353. https://doi.org/10.1016/j.apenergy.2023.122098

Huang, X., Huang, X., Chen, M., & Sohail, S. (2022). Fiscal spending and green economic growth: fresh evidence from high polluted Asian economies. Economic Research-Ekonomska Istraživanja, 35(1), 5502–5513.

Hou, S. (2023). Fiscal science and technology expenditure and the spatial convergence of regional innovation efficiency: evidence from China’s province-level data. Economic Research-Ekonomska Istrazivanja, 36(1), 1848–1866. https://doi.org/10.1080/1331677X.2022.2094436

Jacques, O. (2023). The political and fiscal determinants of public health and curative care expenditures: evidence from the Canadian provinces, 1980–2018. Canadian Journal of Public Health, 114(4), 584–592. https://doi.org/10.17269/s41997-023-00751-y

Marcatelli, M. (2015). Suspended redistribution: ‘green economy’ and water inequality in the Waterberg, South Africa. Third World Quarterly, 36(12), 2244–2258.

Peng, F. (2023). Impact of fiscal expenditure stress on green transformation risk: evidence from China education authority reform. Economic Change and Restructuring, 56(6), 4565–4601. https://doi.org/10.1007/s10644-023-09567-9

Tan, Q. (2023). Impact of fiscal education expenditure on innovation of local listed enterprises: Evidence from China. Finance Research Letters, 57. https://doi.org/10.1016/j.frl.2023.104192

Tran, T. P. K. (2024). Government expenditure–shadow economy nexus: the role of fiscal deficit. International Journal of Emerging Markets, 19(2), 322–338. https://doi.org/10.1108/IJOEM-12-2021-1934

Wang, Z., Wang, X., & Liang, L. (2019). Green economic efficiency in the Yangtze River Delta: spatiotemporal evolution and influencing factors. Ecosystem Health and Sustainability, 5(1), 20–35.

Wei, L. (2023). Does fiscal expenditure promote green technological innovation in China? Evidence from Chinese cities. Environmental Impact Assessment Review, 98. https://doi.org/10.1016/j.eiar.2022.106945

Wei, S. (2023). Regional development, agricultural industrial upgrading and carbon emissions: What is the role of fiscal expenditure? —Evidence from Northeast China. Economic Analysis and Policy, 80, 1858–1871. https://doi.org/10.1016/j.eap.2023.11.016

Xi, M. (2023). Fiscal Expenditure on Sports and Regional Carbon Emissions: Evidence from China. Sustainability (Switzerland), 15(9). https://doi.org/10.3390/su15097595

Xu, C. (2023). Spatio-temporal efficiency of fiscal environmental expenditure in reducing CO2 emissions in China’s cities. Journal of Environmental Management, 334. https://doi.org/10.1016/j.jenvman.2023.117479

Xu, X. (2023). Reassessing the linkage between natural resources and economic growth in China: Delving into the impacts of national resource taxes, renewable energy, financial advancements, and provincial fiscal expenditures. Resources Policy, 86. https://doi.org/10.1016/j.resourpol.2023.104293

Yan, J. (2023). Does digital economy strengthen the income distribution effect of fiscal expenditure? Evidence from China. PLoS ONE, 18(8). https://doi.org/10.1371/journal.pone.0290041

Yuan, S. (2023). The spatiotemporal effects of green fiscal expenditure on low-carbon transition: empirical evidence from china’s low-carbon pilot cities. Annals of Regional Science, 70(2), 507–533. https://doi.org/10.1007/s00168-022-01159-1

Zhang, S. (2023). Effects of Vertical Fiscal Imbalance on Fiscal Health Expenditure Efficiency—Evidence from China. International Journal of Environmental Research and Public Health, 20(3). https://doi.org/10.3390/ijerph20032060

Zhang, Z. (2024). Effect of agricultural fiscal expenditures on agricultural carbon intensity in China. Environmental Science and Pollution Research, 31(7), 10133–10147. https://doi.org/10.1007/s11356-023-25763-6