Environmental policies in a stagnant economy

Arbeitspapier

Using a dynamic optimization model of a monetary economy where persistent unemployment can prevail, we examine the effects of environmental policies on consumption and pollution emissions in a full-employment and a stagnant economy. If full employment prevails, environmental policies such as environmental tax and public pollution abatement naturally crowd out commodity production and hence decrease consumption. However, if unemployment appears, they stimulate consumption and production by increasing total employment and mitigating deflation, thus yielding additional pollution emissions. Net pollution emissions may eventually increase. The optimal environmental policy mix is also examined.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 1110

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Monetary Growth Models ; Environmental Economics: Government Policy
• Subject: Secular stagnation ; Unemployment ; Public abatement ; Environmental tax

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ikefuji, Masako ; Ono, Yoshiyasu
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/234922
• Last update: 10.03.2025, 11:45 AM CET