Since the winter of 2020, the spread of covid-19 has affected economic activity in the Nordic region. All the Nordic countries introduced fiscal policy measures to counteract the economic downturn and the negative effects the lockdown has on economic output and employment. At the same time, the Nordic countries are concerned with the more long-term crisis related to global warming, and the national targets for reducing greenhouse gas emissions and environmental degradation. The financial stimulus measures may exacerbate or positively impact challenges related to the environment and to greenhouse gas emissions.
In this study, we have assessed the economic stimulus measures that have been introduced in the Nordic region, and their impact on climate and the environment. Our main finding is that there is no strong evidence of green stimulus in the covid-19 packages in the Nordic countries.
The study has been carried out by HBS Economics, Menon Economics, Friðrik Már Baldursson, Professor of Economics at Reykjavik University. The study is commissioned by the Nordic Council of Ministers.
Learn more about the study
HBS Economics (2022): "Covid-19 policy responses and green recovery in the Nordic region"