Publication:
Double Dividend Policies to Achieve Fiscal and Environmental Sustainability: A Public Finance Review for Brazil

Loading...
Thumbnail Image
Files in English
English PDF (9.44 MB)
91 downloads
English Text (639.09 KB)
38 downloads
Published
2025-07-22
ISSN
Date
2025-07-22
Author(s)
Editor(s)
Abstract
This report explores how fiscal policy can improve both fiscal and environmental balances. The first chapter reviews fiscal aggregates and trends, assessing the need for adjustment and recent fiscal rules. It identifies opportunities for savings and revenue beyond environmental considerations. The second chapter uses a general equilibrium model to evaluate climate transition policies put forward by the Government of Brazil, their effectiveness in reducing GHG emissions and their wider economic impacts. The third chapter focuses on expenditure and tax policies with environmental and climate implications in the areas of fossil fuel, agricultural policies and taxation of rural land. The fourth chapter examines intergovernmental fiscal transfers, especially the potential for a green component in federal-to-state transfers.
Link to Data Set
Citation
World Bank. 2025. Double Dividend Policies to Achieve Fiscal and Environmental Sustainability: A Public Finance Review for Brazil. © World Bank. http://hdl.handle.net/10986/43480 License: CC BY-NC 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Niger - Accelerating Growth and Achieving the Millennium Development Goals : Diagnosis and the Policy Agenda
    (Washington, DC, 2007-09) World Bank
    This report has the following objectives: (i) identify the underlying constraints to strong and sustained growth, in particular, the dynamic circles that lock Niger in a low-growth/high poverty equilibrium; (ii) understand the key determinants of growth and poverty traps and the role increased foreign aid could play to promote growth and help achieve the MillenniumDevelopment Goals (MDGs); and (iii) help the Government of Niger design a strategy to accelerating growth and human development: Strategy Paper for Human Development (SPAHD). This report is organized as follows: Chapter 1 describes the main features of Niger's economy from a Social Accounting Matrix perspective. It aims to analyze the potential linkages between sectors and the impact a policy shock of an increased public investment could have on Niger's economy. Chapter 2 reviews Niger's growth performance over the past three decades. It draws some policy lessons critical to the design of a growth strategy for Niger. Chapter 3 provides a snapshot of where Niger stands in achieving the MDGs with less than a decade remaining. It examines the reasons why Niger is falling short of the goals, describes the recent progress, and highlights the challenges ahead. Chapter 4 analyzes the constraints to strong and sustained growth with particular focus on poverty traps. Chapter 5 discusses the macro and micro foundations for strong growth and achieving the MDGs. It examines the post stabilization macroeconomic policy required to enhance the macroeconomic foundations of growth. It also identifies the engines of growth and highlights the cross-cutting issues for improving the business environment. In addition, the chapter discusses the role the private sector can play in Niger's quest to achieve the MDGs. Chapter 6 analyzes the potential impact that increased foreign aid would have on growth, poverty, and other MDGs using Niger's macroeconomic model. It focuses mainly on the links between foreign aid, the level and composition of public investment - which is disaggregated into education, infrastructure, and health -- the supply-side effects of public capital, growth, poverty, and other MDGs. Furthermore, it discusses the impact of three policy experiments on growth and the MDGs, including an increase in foreign aid (namely grants), debt relief, and a combined increase in foreign aid and tax reforms. Finally, it highlights the importance of improving governance to maximize the impact of domestic reforms and increased foreign aid on growth and the MDGs. Chapter 7 concludes the report and draws up policy recommendations, highlighting the policy priorities needed to accelerate growth and achieve the MDGs.
  • Publication
    Implementing the Agenda of the Namibian Ministry of Environment and Tourism : A Rapid Country Environmental Analysis with a Public Expenditure Review for Aligning Policy, Institutional and Financing Priorities
    (Washington, DC, 2008-12) World Bank
    This report is organized around three thematic chapters. Chapter one looks at the contribution of the environment and tourism sector to the Namibian economy as well as at some key achievements and challenges. Chapter two describes the policy and legislative framework, and the institutional analysis of the environment and tourism sector. Chapter three examines the financing of the sector and some key budget management issues. And finally in chapter four of volume one, a set of recommendations and short- and medium-term actions are proposed that aim to assist the Ministry in the implementation of its up-coming work programs as well as the strategic plan. Chapter four of volume two includes the assessment of the financing of the sector at the local level using the example of the Erongo Region.
  • Publication
    Strengthening Policy Dialogue on Environment : Learning from Five Years of Country Environmental Analysis
    (World Bank, Washington, DC, 2008-02) Pillai, Poonam
    The objective of this paper is to review experience with completed country environmental analysis (CEAs) to improve the effectiveness of CEAs as a strategic analytical tool. Through in-depth analysis of the process, methodologies, costs, and results of completed CEA pilots, the paper assesses how effective CEAs have been in informing and providing strategic guidance to the Bank and client countries on environment-development issues and the extent to which they have facilitated donor coordination. The analysis carried out in this paper also provides feedback on when to prepare a CEA, how to prepare and structure CEAs, and how to use specific methodologies and processes in influencing policy dialogue with partner countries. The findings are of potential interest to World Bank sector managers, country directors, CEA task teams, and environmental staff, but also to development partners who carry out work similar to CEAs. The paper is based on a desk review of completed CEAs and on interviews with task managers and members of CEA teams. Several reports, including a fieldwork-based assessment of the Ghana, India, and Guatemala CEAs commissioned by the Environment Department; a review on Tunisia by the Quality Assurance Group (QAG); and a report commissioned by the Latin America and Caribbean Region, based on in-country assessments of completed CEAs, have also informed this study. A detailed case study analysis of each completed CEA was prepared for this exercise; it substantively informed the review and is available as a background paper. The original CEA concept note proposed that CEAs have three main building blocks: (a) establishment of environment-development priorities linked with growth and poverty reduction, (b) assessment of the environmental implications of sector policies, and (c) institutional analysis. Assessing CEAs against this building block structure, the review highlights several findings.
  • Publication
    Senegal : Country Environmental Analysis
    (Washington, DC, 2008-11-12) World Bank
    The main objective of the Senegal Country Environmental Analysis (CEA) is to reinforce the ongoing dialogue on environmental issues between the World Bank and the Government of Senegal. The CEA also aims to support the ongoing Government implementation of a strategic results-based planning process at the Environment Ministry (MEPNBRLA). The main goal is to enable Senegal to have the necessary tools to attain the Millennium Development Goals (MDGs) and manage its natural resources and environment in a sustainable manner that contributes sharing wealth and reducing poverty. The CEA presents a review of national environmental priorities and the institutional framework for managing these priorities. The CEA also proposes recommendations about reforms that could be implemented with the support of international development partners. This final CEA report includes three sections to encourage discussion on the observations made from the analysis and the suggested recommendations: a) section one summarizes the main environmental issues identified in the CEA (institutional framework for environmental management, sustainable management of terrestrial ecosystems, management of water resources, management of fisheries, and urban environmental management in Dakar. Other environmental issues are also tackled in this section, urban environmental management in regions, waste management, management of coastal zones, and management of retention basins and artificial lakes; b) section two analyzes each of the issues and singles out specific observations and recommendations about institutional and legal reforms and ways to improve management; and c) section three summarizes the operational recommendations drawn from the previous section according to the main environmental issues identified in the CEA framework.
  • Publication
    Environmental Crisis or Sustainable Development Opportunity? Transforming the Charcoal Sector in Tanzania : A Policy Note
    (Washington, DC, 2009-03) World Bank
    The policy note builds on experience from both Tanzania and other Sub-Saharan African countries with similar socioeconomic and environmental contexts. This policy note puts forward and discusses a range of policy measures along the entire charcoal value chain in Tanzania. The development of this policy note benefited from a variety of recent studies on charcoal utilization and trade conducted in the country. This policy note is structured as follows: chapter two provides a broad overview of the charcoal sector in Tanzania and some of the key challenges being faced. It also includes a summary of the key legal and policy measures that have been taken over the past two decades and an assessment of how successful they have been in effecting positive change. Following this, chapter three summarizes experiences reforming the charcoal sector in Tanzania and elsewhere, as well as an assessment of how successful these measures have been. Where possible, key lessons learned are extracted and used to inform policy recommendations. In chapter four, key policy recommendations are made along the production and marketing chains, which are hoped, will provide a useful resource for policy makers and implementers. Chapter five assesses the likely impact of the reforms on reducing deforestation and forest degradation, as well as the positive impacts on boosting employment and improving rural livelihoods. The chapter concludes with an assessment of the costs of the policy recommendations made.

Users also downloaded

Showing related downloaded files

  • Publication
    Kyrgyz Republic Country Climate and Development Report
    (Washington, DC: World Bank, 2025-11-03) World Bank Group
    This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.
  • Publication
    Guinea-Bissau Country Climate and Development Report
    (Washington, DC: World Bank, 2024-10-23) World Bank Group
    Guinea-Bissau is endowed with a wealth of natural resources, with the highest natural capital per capita in West Africa (US3,874 dollars per capita), which could be leveraged for sustainable and resilient growth. However, Guinea-Bissau faces significant development hurdles, such as high poverty rates, political instability, and economic challenges, including an over-reliance on cashew nuts. Rural poverty has increased, and the nation's infrastructure, education, and health care systems are underdeveloped. Climate change poses a severe threat, potentially impacting agriculture, fisheries, and infrastructure. Without adaptation, it could lead to a significant cut in real GDP per capita (minus 7.3 percent by 2050) and increase in poverty (with up to over 200,000 additional poor by 2050, that is, 5 percent of the expected population, in the worst scenario). The country's low greenhouse gas emissions are expected to rise, mainly due to agriculture and land-use changes, with deforestation being a major contributing factor. Although Guinea-Bissau is a low emitter, it has high mitigation ambitions, targeting a 30 percent reduction in greenhouse gas emissions by 2030. The Nationally Determined Contribution outlines significant climate actions, with initiatives focused on forest conservation, sustainable agriculture, and community development. However, the country's political instability, institutional weaknesses, and limited financial resources pose challenges to implementing these climate commitments, which depend heavily on external funding. The financial sector's underdevelopment and vulnerability to external shocks limit its ability to support green investments, though reforms could enhance resilience. Guinea-Bissau must consider its climate financing as development financing and vice-versa, engage the private sector, and integrate climate goals with national development plans to ensure a sustainable future. Concessional climate financing is vital due to the underdeveloped financial sector and the government’s limited borrowing capacity. Addressing Guinea-Bissau's vulnerability to climate change and its structural issues requires a cohesive approach that integrates development and climate strategies. This could involve improving governance, diversifying the economy, protecting natural capital, developing human capital, and investing in sustainable agriculture and infrastructure. The transition to a more sustainable and inclusive development pathway that supports economic growth is possible, but requires focusing on key strategic sectors, enhancing institutional capacity, and creating the conditions to mobilize finance. As a highly vulnerable country, there are myriad needs in the different sectors; however, to be more efficient and effective, Guinea-Bissau should prioritize actions in a few sectors, especially actions on biodiversity, agriculture, and social protection. Low carbon development, especially in energy and forestry sectors, could provide cost-efficient solutions and attract climate finance, including from the private sector, which will support the overall development agenda.
  • Publication
    Unlocking the Power of Healthy Longevity
    (Washington, DC: World Bank, 2024-09-12) World Bank
    Noncommunicable diseases (NCDs) are among the major health and development challenges of our time. Every year, about 41 million people die due to NCDs. This makes up about 74 percent of all deaths globally, the majority of which are in low- and middle-income countries (LMICs). Countless more people live with NCDs every day. Yet, NCDs are largely treatable and preventable. The risk of developing NCDs and deaths from them can both be lowered with appropriate attention to prevention and treatment. However, weak health systems and limited access to affordable care and information, especially in LMICs, contribute to lapses in seeking and receiving appropriate and timely care. This compendium is a compilation of 18 chapters, each exploring a different but related topic in the nexus of NCDs, human capital, and productivity. It is based on a series of analytical work taken up by the World Bank to support the Healthy Longevity Initiative (HLI) - a collaborative effort between the World Bank, the University of Toronto, and key academic and development partners including the Harvard University and the University of Washington. The HLI presents one of a growing set of efforts to increase the urgency of policy response to NCDs across the world.
  • Publication
    Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies
    (Washington, DC: World Bank, 2025-11-05) World Bank
    The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.
  • Publication
    Tajikistan Country Climate and Development Report
    (Washington, DC: World Bank, 2025-03-28) World Bank Group
    The Tajikistan Country Climate and Development Report (CCDR) explores the impact of climate change and global decarbonization on Tajikistan’s development. It identifies key areas to enhance climate resilience and deepen decarbonization and outlines priority recommendations for a successful green transition in Tajikistan, requiring structural reforms, climate-conscious policies, and inclusive strategies for a resilient and sustainable future. Despite economic growth and poverty reduction over the past two decades, Tajikistan's reliance on natural resources and remittances has led to unsustainable development, depleting natural capital and limiting job creation. The government’s green transition plan focuses on renewable energy, promising energy security, economic growth, and regional electricity exports. However, further efforts are needed for a resilient development path, including a complementary reform program to bring significant economic benefits, climate adaptation, and low-carbon development that will benefit Tajikistan and Central Asia's electricity systems. Climate change poses significant risks, threatening water security, agricultural productivity, and infrastructure, potentially reducing GDP per capita by 5-6% by mid-century and pushing 100,000 people into poverty. Additional adaptation measures are crucial, focusing on water management, resilient landscapes, climate-smart agriculture, and disaster risk management. A low-carbon development pathway offers a more resilient and prosperous future, with near net-zero emissions in energy and waste sectors by 2050, boosting economic growth, and job creation and reducing air pollution. Achieving these goals requires substantial investments and institutional reforms to mobilize private capital and attract green foreign investment. Development partners can provide financial assistance, technical expertise, and capacity building.