Climate change mitigation: How effective is green quantitative easing?

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URN:	urn:nbn:de:bsz:180-madoc-633656
Document Type:	Working paper
Year of publication:	2022
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	22-027
Place of publication:	Mannheim
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: E51 , E62 , Q54,
Keywords (English):	climate change , integrated assessment model , 2-sector model , green quantitative easing , carbon taxation
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.

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BASE: Abiry, Raphael ; Ferdinandusse, Marien ; Ludwig, Alexander ; Nerlich, Carolin

Google Scholar: Abiry, Raphael ; Ferdinandusse, Marien ; Ludwig, Alexander ; Nerlich, Carolin

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