Research Article

Green Fiscal Rules and Economic Growth in Europe: A Panel Data

Volume: 14 Number: 1 April 30, 2026
TR EN

Green Fiscal Rules and Economic Growth in Europe: A Panel Data

Abstract

As European economies strive to achieve carbon neutrality by 2050, green fiscal rules have become central to policy debates. The European Union (EU) has integrated environmental considerations into its fiscal governance framework, including green budgeting, sustainable debt rules, and carbon taxation. While these policies aim to balance sustainability with economic growth, their macroeconomic effects remain contested. This study examines how green fiscal rules influence economic growth across European countries, employing Panel data modelling and the Panel ARDL approach to improve causal inference. This research is significant as it investigates the effects of green fiscal policies on economic expansion in Europe, providing policymakers with valuable information. The Panel data approach enhances causal inference, and the Panel ARDL offers valuable information about the long-term impacts, thereby increasing the reliability of the findings. Grasping this connection enables a balance between environmental sustainability and economic stability. This research offers European comparisons, helping other areas develop environmental policy strategies. This initiative also addresses a research void, providing empirical data on whether green fiscal policies stimulate or impede economic expansion.

Keywords

References

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Details

Primary Language

English

Subjects

Migration

Journal Section

Research Article

Publication Date

April 30, 2026

Submission Date

September 5, 2025

Acceptance Date

December 31, 2025

Published in Issue

Year 2026 Volume: 14 Number: 1

APA
Belet, N. H. (2026). Green Fiscal Rules and Economic Growth in Europe: A Panel Data. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, 14(1), 744-770. https://doi.org/10.18506/anemon.1778818