A Macroeconomic Perspective on Evaluating Environmental Regulations

Richard Rogerson

Review of Environmental Economics and Policy, 2015, vol. 9, issue 2, 219-238

Abstract: This article examines how dynamic general equilibrium models and methods that are commonly used to evaluate macroeconomic policies can also be useful for evaluating the aggregate consequences of environmental regulations. I describe two macroeconomic models of interest that differ in the extent to which they incorporate heterogeneity and microeconomic detail. I illustrate how standard methods from macroeconomics can be applied in both models by considering calculations for a hypothetical environmental regulation.

Date: 2015
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