Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change

29 Pages Posted: 9 Feb 2013 Last revised: 17 Jul 2014

See all articles by Garth Heutel

Garth Heutel

University of North Carolina (UNC) at Greensboro - Department of Economics

Carolyn Fischer

Resources for the Future

Multiple version iconThere are 2 versions of this paper

Date Written: February 2013

Abstract

Environmental economics has traditionally fallen in the domain of microeconomics, but recently approaches from macroeconomics have been applied to studying environmental policy. We focus on two macroeconomic tools and their application to environmental economics. First, real business cycle models can incorporate pollution and pollution policy and be used to answer several questions. How can environmental policy adjust to business cycles? How do different types of policies fare in a context with business cycles? Second, endogenous technological growth is an important component of environmental policy. Several studies ask how policy can be designed to both tackle emissions directly and influence the adoption of clean technologies. We focus on these two aspects of environmental macroeconomics but emphasize that there are many other potential applications.

Suggested Citation

Heutel, Garth and Fischer, Carolyn, Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change (February 2013). NBER Working Paper No. w18794, Available at SSRN: https://ssrn.com/abstract=2214263

Garth Heutel (Contact Author)

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States

Carolyn Fischer

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5012 (Phone)
202-939-3460 (Fax)

HOME PAGE: http://www.rff.org/~fischer

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