This work investigates how the application of a green fiscal policy proposal can impact the Brazilian
Economy. The objective is to verify the effectiveness of a possible application of green fiscal policy in the
Brazilian economy, specifically, three types of policy: carbon tax, green public investment and green subsidy in order to verify how climate change and economic interaction. The guiding question of the study is: can green fiscal policy contribute to reducing climate change? As a hypothesis, it is stated that this type of policy can contribute positively to reducing climate damage in the Brazilian context. The method used consisted of adopting the Brazilian Ecological Macroeconomics 1.0 model to understand the implications of a hypothetical adoption of a mix of green fiscal policies. The results showed the effects on financial stability: positive effects regarding the increase in the share of renewable energy; participation in green investment (agriculture and livestock); and the participation of green capital.
