How fiscal policies affect energy systems : the importance of an 'environmental social wage'

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McGregor, Peter and Ross, Andrew G. and Swales, J. Kim (2021) How fiscal policies affect energy systems : the importance of an 'environmental social wage'. Regional Studies, 55 (8). pp. 1354-1364. ISSN 0034-3404 (https://doi.org/10.1080/00343404.2021.1893895)

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Abstract

We employ a regional computable general equilibrium model to measure the impact on CO2 emissions of a balanced-budget increase in public environmental expenditure. We identify conditions under which an economic stimulus accompanied by a reduction in emissions could occur. Our results suggest that this is conceivable if the population values the environmental amenity funded by the increase in public expenditure, and if this is reflected in wage-bargaining behaviour. Given increasing concerns over climate change, public spending on environmental improvement could attract support together with the establishment of an ‘environmental social wage’, where workers accept lower pay in return for that improvement.

ORCID iDs

McGregor, Peter ORCID logoORCID: https://orcid.org/0000-0003-1221-7963, Ross, Andrew G. ORCID logoORCID: https://orcid.org/0000-0002-9228-5626 and Swales, J. Kim;
  • Item type:Article
    ID code:77076
    Dates:
    Date
    Event
    31 July 2021
    Published
    22 March 2021
    Published Online
    2 February 2021
    Accepted
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:14 Jul 2021 10:07
    Last modified:11 Nov 2024 13:08
    URI:https://strathprints.strath.ac.uk/id/eprint/77076
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