This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environmental policy regime put in place; (iii) the optimal environmental policy response to shocks is strongly influenced by the degree to which prices adjust and by the monetary policy reaction.

Annicchiarico, B., Di Dio, F. (2015). Environmental policy and macroeconomic dynamics in a new Keynesian model. JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT, 69(1), 1-21 [10.1016/j.jeem.2014.10.002].

Environmental policy and macroeconomic dynamics in a new Keynesian model

ANNICCHIARICO, BARBARA
Formal Analysis
;
2015-01-01

Abstract

This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environmental policy regime put in place; (iii) the optimal environmental policy response to shocks is strongly influenced by the degree to which prices adjust and by the monetary policy reaction.
gen-2015
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/01 - ECONOMIA POLITICA
Settore SECS-P/02 - POLITICA ECONOMICA
Settore SECS-P/03 - SCIENZA DELLE FINANZE
English
Con Impact Factor ISI
New Keynesian model; Environmental policy; Macroeconomic dynamics; Monetary policy
https://www.sciencedirect.com/science/article/pii/S0095069614000850
Annicchiarico, B., Di Dio, F. (2015). Environmental policy and macroeconomic dynamics in a new Keynesian model. JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT, 69(1), 1-21 [10.1016/j.jeem.2014.10.002].
Annicchiarico, B; Di Dio, F
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/104610
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