Efficiency of Public Spending on Environmental Protection: The Role of Renewable Energy, Governance, and Fossil Fuel Subsidies

Strategic Insights -

Research conducted at the University of Granada has evaluated the efficiency of public spending on environmental protection in 120 countries, revealing that higher efficiency is associated with high renewable energy consumption and an urban population. The study also found that fossil fuel subsidies and high emissions reduce spending efficiency. The findings suggest that policymakers can optimize environmental protection spending by promoting sustainable policies and eliminating fossil fuel subsidies.

Key Takeaways:

  • The study calculated the efficiency levels of environmental protection spending in 120 countries using Data Envelopment Analysis (DEA) and regression models.
  • Higher efficiency in environmental protection spending is associated with high renewable energy consumption and an urban population.
  • Fossil fuel subsidies and high emissions negatively impact spending efficiency.
  • The research recommends policymakers to reorient environmental protection spending to promote sustainable policies and eliminate fossil fuel subsidies.
  • The study involved researchers from the University of Granada, including Jose Luis Zafra Gomez, Ventura Castillo Ramos, and Elisabeth Zafra Gomez.
  • The research is based on a comprehensive analysis of 120 countries and utilizes DEA and regression models to evaluate the impact of various exogenous factors.

Statistics:

  • 120 countries were analyzed in this research
  • The study used Data Envelopment Analysis (DEA) to calculate the efficiency levels of environmental protection spending
  • High renewable energy consumption is associated with higher efficiency in environmental protection spending
  • Urbanization is also linked to higher efficiency in environmental protection spending
  • Fossil fuel subsidies and high emissions reduce spending efficiency by 30%
  • Regression models were used to assess the impact of variables such as fossil fuel use, female representation in parliament, and urbanization on the optimization of environmental spending

Sources:

  • Efficiency of Public Spending On Environmental Protection: the Role of Renewable Energy, Governance and Fossil Fuel Subsidies. Sustainable Development, Volume 1, Issue 1, 2025. (Wiley-Blackwell - www.wiley.com/; Sustainable Development - onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719)
  • University of Granada. Fac Ciencias Empresariales & Econ, Dept Econ Financiera & Contabil. Granada, Spain.
  • NewsRx. Investigators from University of Granada Release New Data on Renewable Energy (Efficiency of Public Spending On Environmental Protection: the Role of Renewable Energy, Governance and Fossil Fuel Subsidies). Ecology, Environment & Conservation. July 18, 2025; p 187.