Climate change mitigation: How effective is green quantitative easing?

Raphael Abiry, Marien Ferdinandusse, Alexander Ludwig and Carolin Nerlich

No 22-027, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: 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 is 4 times more effective.

Keywords: Climate Change; Integrated Assessment Model; 2-Sector Model; GreenQuantitative Easing; Carbon Taxation (search for similar items in EconPapers)
JEL-codes: E51 E62 Q54 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/261379/1/1811039324.pdf (application/pdf)

Related works:
Working Paper: Climate Change Mitigation: How Effective Is Green Quantitative Easing? (2022)
Working Paper: Climate Change Mitigation: How Effective is Green Quantitative Easing? (2022)
Working Paper: Climate change mitigation: how effective is green quantitative easing? (2022)
Working Paper: Climate Change Mitigation: How Effective is Green Quantitative Easing? (2022)
Working Paper: Climate change mitigation: How effective is green quantitative easing? (2022)
Working Paper: Climate Change Mitigation: How Effective is Green Quantitative Easing? (2022)
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:zewdip:22027

Access Statistics for this paper

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