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Clean Technology Transition.pdf

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Preview of Clean Technology Transition
🔗 Source: cccep.ac.uk
📊 Size: 864 KB
📄 Pages: 53 pages
⬇️ Downloads: 72

Summary

Policy interactions and the transition to clean technology are assessed using a macro-financial-environmental DSGE model, which includes financial intermediaries and a two-sector economy with green and dirty sectors. The model shows that a 10% carbon tax is needed in the Euro Area to align with the Paris Agreement, but the optimal tax for welfare is smaller. Macroprudential and monetary policies can play a major role in reducing emissions, with macroprudential policy favoring the green sector and boosting green capital and output. Quantitative easing (QE) can also improve the benefits of green asset purchases, but macroprudential policy is needed to incentivize central banks to engage in green QE.

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Description

Policy interactions and the transition to clean technology are assessed using a macro-financial-environmental DSGE model, which includes financial...

Technical Information

  • File Format: PDF
  • File Size: 864 KB
  • Pages: 53
  • Language: EN
  • Total Downloads: 72
  • Last Updated: 3 weeks ago

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