Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282981 
Year of Publication: 
2023
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 33/2023
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
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.
Subjects: 
emission disclosure
climate-related disclosure
climate policy
carbon taxation
E-DSGE
financial frictions
JEL: 
D82
E17
G11
G14
G18
H23
Q43
Q58
Persistent Identifier of the first edition: 
ISBN: 
978-3-95729-968-0
Document Type: 
Working Paper

Files in This Item:
File
Size
962.47 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.