Madrid III. Professor of Macroeconomics, Monetary Economics and Fiscal Policy at Carlos University, Evi Pappaconsiders it necessary. public incentive policies for companies to get clean green transition without the effects of inflation. This transition, combined with the right financial measures, will increase the competitiveness and productivity of companies located in regions with economic and economic development, as well as facilitating green energy production. abundance of sustainable natural resourcesas sunshine in Alicante. “If we want to go green, what we need to seriously consider is how we can achieve a balance of power that will encourage companies to produce their own green energy,” Pappa said.
Pappa was one of the Spanish and foreign speakers attending the Workshop edition”Macroeconomic Risks and Policies”edited by, Chapter on Fundamentals of Economic Analysis The University of Alicante (FAE) where economists from the main academic institutions and collaborators from various government and European central banks present their work on the challenges of today’s economy.
Explaining his research on the green transition and its impact on the economy under the title “The green metamorphosis of a small open economy”, III. Europe’s “green island”It has great potential in terms of solar power generation, as in areas such as Levante and the province of Alicante.
“If the government invests in the generation of green energy infrastructure, what it will do To increase the efficiency of the industry and business sector, this means that in the long run, energy prices could fall and the impact on their products could be zero. Then they become more efficient and more competitive companies,” commented this Greek expert on fiscal policies in the green transition.
According to Professor Carlos III, the responsibility for this transition rests with governments as well as with companies and their managers, who must see that they are faced with the challenge of investing in the present to strengthen their position in the future relative to their competitors. Where southern countries have the advantage of high solar peaks that produce sustainable and inexpensive energy.
avoiding inflation
For this, it is necessary to apply adequate fiscal policy Because “if we only tax fossil fuels then yes it would be very inflationaryHe explains that he is committed to creating incentives, subsidies and stimulating policies for the business and industrial sector. is practically zero.
But he warns that it will be necessary to bear the financial cost. Pappa believes that “you can invest in green capital and green infrastructure, but you have to borrow money. And it can only be done without creating inflation if you tell the markets that you can make the transition effectively.”
In the case of Spain, from his point of view, it is possible thanks to the climatic conditions and by extension it meets with other countries such as Portugal or Greece. However, Europe is still far from being a perfect state that does not depend on fossil or nuclear fuels.
“We don’t have the capacity at the moment. Spain, Portugal, Greece, Denmark… They are too small for Europe’s needs, we saw this with the energy crisis in Germany, we saw an increase in prices.” he thinks it could be a great incentive to turn it into a model.