European green bonds, carbon tax and crowding-out: The economic, social and environmental impacts of the EU’s green investments under different financing scenarios

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F25%3A101733" target="_blank" >RIV/60460709:41110/25:101733 - isvavai.cz</a>

Result on the web

<a href="https://www.sciencedirect.com/science/article/pii/S1364032125000036?via%3Dihub" target="_blank" >https://www.sciencedirect.com/science/article/pii/S1364032125000036?via%3Dihub</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.rser.2025.115330" target="_blank" >10.1016/j.rser.2025.115330</a>

Result language

angličtina

Original language name

European green bonds, carbon tax and crowding-out: The economic, social and environmental impacts of the EU’s green investments under different financing scenarios

Original language description

This study provides novel insights into the economic, social and environmental impacts of green energy investments in the European Union using MAGNET, a computable general equilibrium model of the world economy. MAGNET was extended to include sector-specific investment allocation, investment risk premiums adjustment, and technology learning effects to endogenize productivity growth in renewable and bioenergy sectors. In line with the proposals on climate neutrality and the Green Deal, the study simulates an increase in investments in renewable energy and bioeconomy sectors (additional 15 % increase in capital stock) starting in 2025. Three alternative financing scenarios are compared; the European Green Bonds scenario, carbon tax scenario and the crowding-out scenario (assuming green investments are financed from existing resources). It is found that additional green energy investments bring generally positive GDP, social and emission-saving effects. In the case of GDP, the deviation from the baseline reaches +0.9 % in 2050 for the EU if financed from the Green Bond. The other scenarios show that when green investments are not crowding-out other investments in the EU, the economic impacts at EU level are still positive. It is also shown that, on average, the investment policy would increase the size of bioeconomy sector by between 3.2 % and 4.2 % in 2050. However, the impacts across particular countries and industries are very heterogenous.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50704 - Environmental sciences (social aspects)

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

RENEWABLE & SUSTAINABLE ENERGY REVIEWS

ISSN

1364-0321

e-ISSN

1364-0321

Volume of the periodical

211

Issue of the periodical within the volume

115330

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

17

Pages from-to

1-17

UT code for WoS article

001411206200001

EID of the result in the Scopus database

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