Research Article

Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools

Volume: 10 Number: Özel Sayı October 31, 2025
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Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools

Abstract

This study examines the effects of environmentally related taxes and feed-in tariffs (FiTs) on greenhouse gas (GHG) emissions in Mediterranean countries, while also exploring the role of broader green finance instruments in the region. The study highlights several key findings. First, environmentally related taxes and climate taxes, while not significantly reducing per capita GHG emissions when applied alone, appear to become more effective when combined with stringent environmental policies. Specifically, a 1 percentage point increase in these taxes leads to a 0.01-0.02% decrease in GHG emissions per capita, with more stringent policies amplifying their impact. Similarly, the presence of FiTs does not consistently reduce emissions unless tariffs are increased for specific energy sources such as hydro, waste, or marine energy, leading to a more pronounced decline in emissions. Green finance mechanisms are necessary but not sufficient on their own; their success depends on alignment with complementary fiscal and regulatory policies. A comprehensive policy mix—phasing out fossil fuel subsidies, implementing carbon pricing, and reinforcing environmental regulation—is crucial for enabling a credible transition to a low-carbon economy in the Mediterranean.

Keywords

References

  1. Acar, S. (2024). Addressing the link between fossil fuel subsidies and climate change in the Mediterranean Region. In R. Degron and C. Tsakas (Eds.), Unraveling the Impact of environmentally harmful subsidies in the Mediterranean (pp. 76-107). Marseille: Plan Bleu.
  2. Acar, S. (2025). Financing the green transition: A synthesis and analysis of green finance tools employed in the Mediterranean region. In R. Degron and C. Tsakas (Eds.), Environmentally friendly economic tools and finances: A pathway towards sustainability in the Mediterranean (pp. 89-120). Marseille: Plan Bleu.
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Details

Primary Language

English

Subjects

Green Economy

Journal Section

Research Article

Authors

Constantin Tsakas This is me
France

Publication Date

October 31, 2025

Submission Date

July 1, 2025

Acceptance Date

October 15, 2025

Published in Issue

Year 2025 Volume: 10 Number: Özel Sayı

APA
Acar, S., & Tsakas, C. (2025). Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools. Ekonomi Politika Ve Finans Araştırmaları Dergisi, 10(Özel Sayı), 1-29. https://doi.org/10.30784/epfad.1812998
AMA
1.Acar S, Tsakas C. Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools. EPF Journal. 2025;10(Özel Sayı):1-29. doi:10.30784/epfad.1812998
Chicago
Acar, Sevil, and Constantin Tsakas. 2025. “Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools”. Ekonomi Politika Ve Finans Araştırmaları Dergisi 10 (Özel Sayı): 1-29. https://doi.org/10.30784/epfad.1812998.
EndNote
Acar S, Tsakas C (October 1, 2025) Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools. Ekonomi Politika ve Finans Araştırmaları Dergisi 10 Özel Sayı 1–29.
IEEE
[1]S. Acar and C. Tsakas, “Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools”, EPF Journal, vol. 10, no. Özel Sayı, pp. 1–29, Oct. 2025, doi: 10.30784/epfad.1812998.
ISNAD
Acar, Sevil - Tsakas, Constantin. “Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools”. Ekonomi Politika ve Finans Araştırmaları Dergisi 10/Özel Sayı (October 1, 2025): 1-29. https://doi.org/10.30784/epfad.1812998.
JAMA
1.Acar S, Tsakas C. Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools. EPF Journal. 2025;10:1–29.
MLA
Acar, Sevil, and Constantin Tsakas. “Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools”. Ekonomi Politika Ve Finans Araştırmaları Dergisi, vol. 10, no. Özel Sayı, Oct. 2025, pp. 1-29, doi:10.30784/epfad.1812998.
Vancouver
1.Sevil Acar, Constantin Tsakas. Financing the Green Transition in the Mediterranean: Assessing the Impact and Diversity of Green Finance Tools. EPF Journal. 2025 Oct. 1;10(Özel Sayı):1-29. doi:10.30784/epfad.1812998