Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261379 
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 22-027
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
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.
Subjects: 
Climate Change
Integrated Assessment Model
2-Sector Model
GreenQuantitative Easing
Carbon Taxation
JEL: 
E51
E62
Q54
Document Type: 
Working Paper

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