Green Fiscal Policies and Their Role in Promoting Sustainable Development
DOI:
https://doi.org/10.47941/je.2679Keywords:
Macroenomic Policy, Private Investment Growth, Economic Stability, Inflation, Gross Domestic Product (GDP) Growth, E60, E22, E32, E43, O40Abstract
Purpose: The objective of this study was to investigate green fiscal policies and their role in promoting sustainable development.
Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.
Findings: The findings revealed that there exists a contextual and methodological gap relating to green fiscal policies and their role in promoting sustainable development. Preliminary empirical review revealed that changes in macroeconomic variables like inflation, interest rates, and GDP growth significantly influenced private investment in Kenya. Stable and predictable economic conditions encouraged investment, while volatility discouraged it, highlighting the need for consistent macroeconomic policies to support private sector growth.
Unique Contribution to Theory, Practice and Policy: Environmental Kuznets Curve theory (EKC), Ecological Modernization theory (EMT) and Public Choice theory may be used to anchor future studies on green fiscal policies and their role in promoting sustainable development. The study recommended maintaining macroeconomic stability, strengthening financial markets, and promoting inclusive growth to boost investment. It contributed to theory by highlighting the link between macroeconomic factors and investment behavior, and to practice and policy by calling for reforms that create a stable and supportive investment environment.
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