Cap-and-trade

Created
Wed, 08/11/2023 - 20:00
Francesca Diluiso, Barbara Annicchiarico and Marco Carli While climate change is often seen as a long-term concern, climate mitigation policies can have different short-term effects, since they affect the transmission mechanism of conventional macroeconomic shocks. In a new working paper, we show that cap-and-trade schemes lead to lower volatility in GDP and financial variables, and … Continue reading Beyond emissions: the interplay of macroprudential regulation and climate policy