Summary of A Public Finance Perspective on Climate Policy

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A Public Finance Perspective on Climate Policy summary


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Climate policy impinges on public finance, particularly in the ways governments pay for alternative energy solutions and climate change mitigation, as well as in how they handle green tax revenues. Researchers Jan Siegmeier, Linus Mattauch, Max Franks, David Klenert, Anselm Schultes and Ottmar Edenhofer detail how countries’ environmental plans can affect their fiscal regimes, including through taxation, income inequality and intergenerational transfers of costs and benefits. getAbstract recommends this creative and thoughtful exploration of options in tackling climate and budget issues to policy makers, fiscal analysts and economists.

In this summary, you will learn

  • Why analyzing climate policy in conjunction with public finance is important,
  • How green taxes can help resolve wider fiscal problems, and
  • How intergenerational transfers can offer a fairer distribution of the costs and benefits of climate policy.

About the Authors

Jan Siegmeier et al. are affiliated with the Technische Universität Berlin.



Analysts generally model fiscal and climate policies separately, but environment plans and public finance are two sides of a coin. Because green taxes can generate substantial sums for governments, the added income can affect budgets and, hence, policy. Examples of the “double dividend” – as, for instance...

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