The impact of fiscal policy on environmental management in ensuring sustainable economies

Abstract

Abstract The increase in emissions of greenhouse gases and other harmful substances carried out in the process of production leads to an increase in environmental disasters and the deterioration of climatic conditions, despite the growth of green projects and the introduction of eco-innovations in production. The purpose of the study is to substantiate the use of green financial instruments in fiscal policy and assess its impact on environmental management in ensuring economic sustainability based on the application of theoretical and empirical methods of analysis. A method for identifying the dynamics of development of environmental taxation in the EU budget is proposed. The theoretical analysis carried out by the authors made it possible to identify the tools of the impact of fiscal policy in ensuring economic sustainability: the provision of benefits, subsidies; transfer payments; change in environmental tax rates. When choosing instruments of fiscal regulation, a methodology is proposed for determining the significance of environmental revenues in EU budget revenues, which is recommended in monitoring and assessing the impact of fiscal policy on environmental management in ensuring economic sustainability.