Macroeconomic Impact of Environmental Policy Uncertainty and Monetary Policy Implications

This paper evaluates the macroeconomic implications of uncertainty arising from delays or unpredictability regarding the timing and extent of environmental policy implementation. An environmental dynamic stochastic general equilibrium (E-DSGE) model shows that increasing uncertainty about environmental policies is associated with a subsequent decline in investment, as firms prefer to postpone investment decisions. The decline in […]

Navigating Geopolitical Crises for Energy Security: Evaluating Optimal Subsidy Policies via a Markov Switching DSGE Model

How can policymakers design optimal subsidy policies that enhance energy security in the face of energy disruptions caused by geopolitical conflicts? This paper aims to answer this question, addressing the shortcomings of existing integrated assessment models for environmental evaluation that do not adequately account for the environmental and economic impacts of geopolitical conflicts and do […]