Could fiscal policies induce green innovation in developing countries? The case of Brazilian manufacturing sectors     

Camila Gramkow  Annela Anger-Kraavi 《Climate Policy》2018,18(2):246-257

Brazil is the first major developing country to pledge for absolute reductions in greenhouse gas emissions. This article explores the extent to which fiscal policies could contribute to this reduction and to greening the Brazilian economy. It was found that the use of green fiscal policies is at an early stage in Brazil, but a growing number of measures have been adopted in recent years led by subnational-level policies. An econometric analysis of 24 Brazilian manufacturing sectors for the years 2001–2008 shows that some fiscal instruments, such as low-cost (subsidized) finance for innovation and fiscal incentives for sustainable practices, have been effective in inducing green innovation. However, less than 14% of more than 100 thousand companies included in the study have adopted greener technologies. Even though Brazilian green fiscal policies have been rather uncoordinated and ad hoc, their significant impact on the uptake of green technologies indicates these can play an important role in a transition to a green economy.

POLICY RELEVANCE

Faced with the challenge of reducing its greenhouse gas emissions in absolute terms, Brazil now needs to put in place policies to help deliver the country’s pledge. This article analyses which fiscal policies should be adopted and how these policies could form part of a low carbon policy framework in the country. Among our policy-relevant findings is that subnational green fiscal policies are relatively less complex to introduce and encourage uptake of green technologies. Thus, they could be an entry point to a wider green fiscal policy strategy. We also found that fiscal incentives for green innovation projects can present more than proportional impact on the uptake of green technologies owing to positive feedbacks, increasing returns to scale and spill-overs. These are attractive features of green innovations to developing countries in addition to environmental benefits, as they favour the accumulation of indigenous technological capabilities that are critical for long-term technological and economic development. These lessons learned from green fiscal policies in Brazil are applicable to other developing countries.  相似文献   

Social impacts of climate change mitigation policies and their implications for inequality     

Sanna Markkanen  Annela Anger-Kraavi 《Climate Policy》2019,19(7):827-844

The Paris Agreement and the Sustainable Development Goals (SDGs) set ambitious targets for environmental, economic and social progress. Climate change mitigation policies play a central role in this process. To maximize the benefits and minimize the negative effects of climate change mitigation policies, policymakers need to be aware of the indirect and often complex social and inequality impacts that these policies may have and the pathways through which these impacts emerge. Better understanding of the distributional and inequality impacts is important to avoid negative social and distributional outcomes as countries ratchet up their climate policy ambition in the post-Paris context. This paper synthesizes evidence from the existing literature on social co-impacts of climate change mitigation policy and their implications for inequality. The analysis shows that most policies are linked to both co-benefits and adverse side-effects, and can compound or lessen inequalities depending on contextual factors, policy design and policy implementation. The risk of negative outcomes is greater in contexts characterized by high levels of poverty, corruption and economic and social inequalities, and where limited action is taken to identify and mitigate potentially adverse side-effects.

Key policy insights

• The risk of adverse social outcomes associated with climate change mitigation policies, including worsening inequality, increases as countries ratchet up their ambition to meet the Paris Agreement targets. Many policies that have so far only been piloted will need to be up-scaled.

• Negative inequality impacts of climate policies can be mitigated (and possibly even prevented), but this requires conscious effort, careful planning and multi-stakeholder engagement. Best results can be achieved when potential inequality impacts are taken into consideration in all stages of policy making, including policy planning, development and implementation.

• Climate change mitigation policies should take a pro-poor approach that, in best case scenarios, can also lead to a reduction of existing inequalities.

  相似文献