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Building Back Better: How Big Are Green Spending Multipliers?
Author: Nicoletta Batini, Mario di Serio1, Matteo Fragetta2, and Mr. Giovanni Melina
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund
  • | 2 https://isni.org/isni/0000000404811396, International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 2021: Issue 087
Language:
English
Publication Date:
19 Mar 2021
DOI:
https://doi.org/10.5089/9781513574462.001
ISBN:
9781513574462
ISSN:
1018-5941
Pages:
47
Keywords:
green multiplier; green stimulus; clean energy; conservation spending; nuclear energy; biodiversity; nature-based solutions; agricultural subsidies; fossil fuels.; spending data; B. data coverage; eco-friendly spending; Policy implication; data coverage; Renewable energy; Renewable resources; Non-renewable resources; Environmental protection; Greenhouse gas emissions; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper estimates multipliers for spending in clean energy and biodiversity conservation to help inform stimulus measures for a post-COVID-19 sustainable recovery. Using a new international dataset, part of which was especially assembled for this analysis, we find that every dollar spent on key carbon-neutral or carbon-sink activities—from zero-emission power plants to the protection of wildlife and ecosystems—can generate more than a dollar’s worth of economic activity. The estimated multipliers associated with green spending are about 2 to 7 times larger than those associated with non-eco-friendly expenditure, depending on sectors, technologies and horizons. These findings survive several robustness checks and suggest that ‘building back better’ could be a win-win for economies and the planet.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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