The role of emission disclosure for the low-carbon transition

Ivan Frankovic and Benedikt Kolb

No 33/2023, Discussion Papers from Deutsche Bundesbank

Abstract: We show 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. The underestimation of emissions from fossil energy firms (imperfect disclosure) provides them with too much funding. While improving disclosure in isolation has limited effects, it proves most beneficial in connection with higher carbon taxes: Improving disclosure by 20 percentage points reduces GDP costs of a carbon tax by 13%. For a carbon tax increase of 50 euro/ton CO2, this implies an average GDP benefit of 47 bn euro over six years.

Keywords: emission disclosure; climate-related disclosure; climate policy; carbon taxation; E-DSGE; financial frictions (search for similar items in EconPapers)
JEL-codes: D82 E17 G11 G14 G18 H23 Q43 Q58 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-dge, nep-eec, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/282981/1/1877230960.pdf (application/pdf)

Related works:
Journal Article: The role of emission disclosure for the low-carbon transition (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdps:282981

Access Statistics for this paper

More papers in Discussion Papers from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().