Fiscal policy plays a prominent role in climate change mitigation and adaptation. An optimal combination of revenue policies, in particular taxes, and expenditure policies, such as subsidies and investment, is essential in order to achieve greenhouse gas emissions targets. This paper analyses...

To contrast the severe global recession of 2009, governments in most advanced countries implemented expansionary fiscal policies leading to a steep increase in public debt. As economies recover, a critical choice is whether to stabilize debt at post-crisis levels, or to bring it down to...