 The role of emission disclosure for the low-carbon transitionIvan Frankovic and Benedikt Kolb European Economic Review, 2024, vol. 167, issue C Abstract: We quantify the importance of emission disclosure for climate policies in a DSGE model for the euro area. A low-carbon energy and a fossil energy sector contribute to production and are financed by balance-sheet constrained intermediaries. We show that imperfect information on emissions by households (savers) is sufficient to create a palpable role for disclosure improvements. The underestimation of emissions from fossil energy firms (imperfect disclosure) provides these firms with too much funding. While improving disclosure in isolation has limited effects, it provides clear benefits in connection with higher carbon taxes: For a carbon tax increase by 50 euro/ton CO2, improving disclosure by 20 percentage points reduces the GDP costs by up to 14%. Over six years, this implies GDP benefits of 47 bn euro. Keywords: Emission disclosure; Climate-related disclosure; Climate policy; Carbon taxation; E-DSGE; Financial frictions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:167:y:2024:i:c:s0014292124001211 DOI: 10.1016/j.euroecorev.2024.104792 Access Statistics for this article European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer More articles in European Economic Review from Elsevier |
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