Climate change mitigation: How effective is green quantitative easing?

Arbeitspapier

We develop a two-sector incomplete markets integrated assessment model to analyze the effectiveness of green quantitative easing (QE) in complementing fiscal policies for climate change mitigation. We model green QE through an outstanding stock of private assets held by a monetary authority and its portfolio allocation between a clean and a dirty sector of production. Green QE leads to a partial crowding out of private capital in the green sector and to a modest reduction of the global temperature by 0.04 degrees of Celsius until 2100. A moderate global carbon tax of 50 USD per tonne of carbon is 4 times more effective.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SAFE Working Paper ; No. 376

Classification and Topics

• Classification: Wirtschaft ; Money Supply; Credit; Money Multipliers ; Fiscal Policy ; Climate; Natural Disasters and Their Management; Global Warming
• Subject: Climate Change ; Integrated Assessment Model ; 2-Sector Model ; Green Quantitative Easing ; Carbon Taxation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Abiry, Raphael ; Ferdinandusse, Marien ; Ludwig, Alexander ; Nerlich, Carolin
• Event: Veröffentlichung
• (who): Leibniz Institute for Financial Research SAFE
• (where): Frankfurt a. M.
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/267520
• Last update: 10.03.2025, 11:43 AM CET