Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy
Using an original panel data set for 24 OECD countries over the sample 1990–2019 and a multivariate empirical macroeconomic framework for business cycle analysis, the paper tests the combined macroeconomic effects of climate change, environmental policies and green innovation. Overall, we find evide...
| Hoofdauteurs: | , |
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| Formaat: | Journal article |
| Taal: | English |
| Gepubliceerd in: |
Elsevier
2023
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| _version_ | 1826311920137797632 |
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| author | Ciccarelli, M Marotta, F |
| author_facet | Ciccarelli, M Marotta, F |
| author_sort | Ciccarelli, M |
| collection | OXFORD |
| description | Using an original panel data set for 24 OECD countries over the sample 1990–2019 and a multivariate empirical macroeconomic framework for business cycle analysis, the paper tests the combined macroeconomic effects of climate change, environmental policies and green innovation. Overall, we find evidence of significant macroeconomic effects over the business cycle: physical risks act as negative demand shocks while transition risks act as downward supply movements. The disruptive effects on the economy typical of a disorderly transition are exacerbated for low income, high emission countries with no history of environmental policy or with a high exposure to natural disasters. In general, one size does not fit all and results support the need for a (possibly country-specific) policy mix to counteract climate change with a balance between demand-pull and technology-push policies. |
| first_indexed | 2024-03-07T08:18:24Z |
| format | Journal article |
| id | oxford-uuid:3d293530-d713-4000-9c05-66814f256e49 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T08:18:24Z |
| publishDate | 2023 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:3d293530-d713-4000-9c05-66814f256e492024-01-18T06:25:47ZDemand or supply? An empirical exploration of the effects of climate change on the macroeconomyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:3d293530-d713-4000-9c05-66814f256e49EnglishSymplectic ElementsElsevier2023Ciccarelli, MMarotta, FUsing an original panel data set for 24 OECD countries over the sample 1990–2019 and a multivariate empirical macroeconomic framework for business cycle analysis, the paper tests the combined macroeconomic effects of climate change, environmental policies and green innovation. Overall, we find evidence of significant macroeconomic effects over the business cycle: physical risks act as negative demand shocks while transition risks act as downward supply movements. The disruptive effects on the economy typical of a disorderly transition are exacerbated for low income, high emission countries with no history of environmental policy or with a high exposure to natural disasters. In general, one size does not fit all and results support the need for a (possibly country-specific) policy mix to counteract climate change with a balance between demand-pull and technology-push policies. |
| spellingShingle | Ciccarelli, M Marotta, F Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title | Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title_full | Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title_fullStr | Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title_full_unstemmed | Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title_short | Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy |
| title_sort | demand or supply an empirical exploration of the effects of climate change on the macroeconomy |
| work_keys_str_mv | AT ciccarellim demandorsupplyanempiricalexplorationoftheeffectsofclimatechangeonthemacroeconomy AT marottaf demandorsupplyanempiricalexplorationoftheeffectsofclimatechangeonthemacroeconomy |