Relationship between fiscal policies and green economy: An application for G20 countries

Abstract

The fact that climatic changes in recent years have occurred at record levels is an indication that a new era awaits the world. The main reason causing global warming is CO2 emission rates. CO2 emissions from fossil fuel use and industrial processes account for approximately two-thirds of current greenhouse gas emissions. Representing 85% of the world's population and 65% of world GDP, G20 countries are also responsible for 76 percent of global emissions. This study will be an analysis of the impact of fiscal policy on the green economy. The performance of the G20 countries with regard to the green economy will be analysed. This study examines data for 2020 using the EDAS methodology, covering sixteen countries by establishing six criteria. According to the empirical findings, the country with the best performance is France, followed by Italy and the UK. The countries with the weakest performance are identified as China, India and USA, respectively.