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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The cyclicality of government environmental expenditure
T2 - political pressure in economic upturns and in recessions
AU - Abbott, Andrew
AU - Jones, Philip
PY - 2023/4/3
Y1 - 2023/4/3
N2 - This is the first paper to explore the determinants of the cyclicality of government environmental protection expenditures. Attention focuses on political pressures to increase expenditure on public-sector programmes. These pressures change systematically over the economic cycle. In economic upturns, voters experience ‘fiscal illusion’. Governments can exercise discretion to increase environmental expenditures. In recessions, voters are far more aware. Vote maximising governments divert expenditures away from the environment, toward programmes that deliver more private-good benefits. Predictions are tested with reference to 28 OECD countries’ expenditures between 1992 and 2012. The cyclicality of expenditures depends on government sensitivity to systematic changes in voter awareness.
AB - This is the first paper to explore the determinants of the cyclicality of government environmental protection expenditures. Attention focuses on political pressures to increase expenditure on public-sector programmes. These pressures change systematically over the economic cycle. In economic upturns, voters experience ‘fiscal illusion’. Governments can exercise discretion to increase environmental expenditures. In recessions, voters are far more aware. Vote maximising governments divert expenditures away from the environment, toward programmes that deliver more private-good benefits. Predictions are tested with reference to 28 OECD countries’ expenditures between 1992 and 2012. The cyclicality of expenditures depends on government sensitivity to systematic changes in voter awareness.
KW - Government expenditurenvoracity effects
KW - environmental protection
KW - fiscal illusion
KW - voracity effects
U2 - 10.1080/21606544.2022.2110162
DO - 10.1080/21606544.2022.2110162
M3 - Journal article
VL - 12
SP - 209
EP - 228
JO - Journal of Environmental Economics and Policy
JF - Journal of Environmental Economics and Policy
SN - 2160-6544
IS - 2
ER -