Keywords
carbon emission reduction policy, disaster shocks, dynamic effect, E-DSGE model
Abstract
This paper constructs an environmental dynamic general equilibrium model including economic disaster risks, and combines China's macroeconomic data to discuss the dynamic effects of carbon emission reduction policies and catastrophe risk shocks on macroeconomics by numerical simulation. The research shows that: When the capital disaster shock occurs, the aggregate control policy performs slightly better in comprehensive aspects such as boosting economic vitality. The carbon tax policy has a small policy effect on pollution reduction, and the corresponding reduction in welfare level is also the highest. Based on economic fundamentals, the impact of the TFP disaster shock is greater than the capital disaster shock. Under the total control policy, technological shock has the most obvious effect in weakening the negative impact of capital disaster shock and TFP disaster on economic and financial variables. This study may provide a new perspective for China's DSGE model for analyzing emission reduction policies.
DOI
10.16315/j.stm.2022.05.007
Recommended Citation
HUANG, Dan and LIU, Wen-jun
(2022)
"Disaster shocks and optimal choice of emission reduction policies under the “Double Carbon” Target,"
Journal of Science and Technology Management: Vol. 24:
Iss.
5, Article 8.
DOI: 10.16315/j.stm.2022.05.007
Available at:
https://jstm.researchcommons.org/journal/vol24/iss5/8
