The economic and environmental effects of China's environmental expenditure under financing constraints.

ABSTRACT: Sound ecological and environmental governance systems are critical for promoting green and low-carbon economic transformation and high-quality development. However, financing constraints are major obstacle to the revitalization and transformation of China's real economy. In this study, we constructed an environmental dynamic stochastic general equilibrium (E-DSGE) model that incorporates two types of environmental expenditure and financing constraints, and discussed their economic and environmental effects. Based on this, we further considered the impacts of financing constraints on policy effects. Firstly, we found that increases in carbon emission reduction subsidies in government expenditure (1) increase total economic output and (2) motivate enterprises to increase emission reduction e

SUBMITTER: Wang R 

PROVIDER: S-EPMC11244846 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature