Assessing the Nexus Between Green Economic Growth and Fluctuations in Fiscal Spending

In the presence of rising climate issues, green economic growth has emerged as a tool to combat climate change. For a sustainable upsurge in green economic growth, fiscal spending can play a considerable role. However, fiscal spending is associated with fluctuations across time, which should be properly investigated in the context of green economic growth. Thus, we examine the asymmetric impact of fiscal spending fluctuations on green economic growth in BRICS economies. The findings from AMG and CCE methods reveal that fiscal spending fluctuations impact green economic growth in the long run. In particular, contractionary policy enhances the scope of green economic growth. However, expansionary fiscal policy brings a negative change in green economic growth. We propose adopting controlled fiscal measures, targeting specific sectors of the economy, to promote green economic growth in BRICS countries.