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- W2067687957 abstract "We study the relationship between unemployment, environmental policy, and business cycles. We develop a dynamic stochastic general equilibrium real business cycle model that includes both a pollution externality and congestion externalities from labor market search frictions. These frictions generate unemployment on the extensive margin and affect hours worked on the intensive margin. We consider two policies to address the market failures: an emissions tax and a tax or subsidy on job creation. With both policies present, the efficient outcome can be achieved. When one policy is constrained or absent, we solve for the second best. The absence of a vacancy policy to address the congestion externalities substantially affects the value of the emissions tax, both in steady state and over the business cycle." @default.
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- W2067687957 date "2009-12-01" @default.
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- W2067687957 title "Introduction to the EMF 22 special issue on climate change control scenarios" @default.
- W2067687957 doi "https://doi.org/10.1016/j.eneco.2009.10.014" @default.
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