کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
986984 1480820 2012 21 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
How should environmental policy respond to business cycles? Optimal policy under persistent productivity shocks
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
How should environmental policy respond to business cycles? Optimal policy under persistent productivity shocks
چکیده انگلیسی

How should environmental policy respond to economic fluctuations caused by persistent productivity shocks? This paper answers that question using a dynamic stochastic general equilibrium real business cycle model that includes a pollution externality. I first estimate the relationship between the cyclical components of carbon dioxide emissions and US GDP and find it to be inelastic. Using this result to calibrate the model, I find that optimal policy allows carbon emissions to be procyclical: increasing during expansions and decreasing during recessions. However, optimal policy dampens the procyclicality of emissions compared to the unregulated case. A price effect from costlier abatement during booms outweighs an income effect of greater demand for clean air. I also model a decentralized economy, where government chooses an emissions tax or quantity restriction and firms and consumers respond. The optimal emissions tax rate and the optimal emissions quota are both procyclical: during recessions, the tax rate and the emissions quota both decrease.


► I study climate policy using a real business cycle model.
► Optimal climate policy is procyclical.
► An optimal emissions tax is procyclical, so is an optimal emissions quota.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Review of Economic Dynamics - Volume 15, Issue 2, April 2012, Pages 244–264
نویسندگان
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