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- W4220904993 abstract "Abstract This paper studies how interaction between economic decision-making and environmental awareness affects US business cycle and GHG emissions in a two-sector DSGE model. We emphasize the mechanisms that relate carbon emissions dynamics, consumer behavior, and environmental awareness in a framework incorporating two classes of goods (i.e., “clean” and “dirty”). This paper offers three main results. First, green consumption preferences play a key role in emissions reduction when they internalize emissions concentrations. Second, a green preference shock is the second source of fluctuation in many sectoral variables and stabilizes the business cycle. Third, a pollutant supply shock leads to sustainable consumption procyclicality documented in US data, only if households are environmentally aware." @default.
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- W4220904993 date "2022-03-09" @default.
- W4220904993 modified "2023-10-18" @default.
- W4220904993 title "Green preferences" @default.
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- W4220904993 doi "https://doi.org/10.1007/s10668-022-02179-9" @default.
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