Fiscal Policies and Climate Change Mitigation in the European Union

Abstract

This study examines the role of fiscal policies in climate change mitigation efforts within the European Union. It evaluates the effectiveness of carbon taxes, subsidies for renewable energy, and other financial mechanisms in reducing greenhouse gas emissions. The article compares fiscal strategies of Germany, Sweden, and Poland, highlighting successes and limitations. Through econometric analysis and policy review, the research identifies key factors that influence the success of fiscal interventions in achieving climate targets. Recommendations are provided to enhance the alignment of fiscal policies with environmental objectives, supporting the EU's transition to a low-carbon economy.