Project information
Essays in Environmental Macroeconomics

This project investigates the use of dynamic stochastic general equilibrium (DSGE) models within environmental economics, with particular attention to macroeconomic impacts of climate change and emission-reduction policies. The project focuses on the interaction between traditional macroeconomic variables and environmental indicators such as emissions or clean energy use. A central theme of the project is the role of the unofficial (shadow) economy in shaping the effectiveness of environmental policies. The project examines how the implementation of emission-mitigation measures influences the size and behavior of the unofficial sector, comparing scenarios where firms can evade environmental regulations with those where policy compliance is unavoidable. Additionally, it evaluates alternative schemes for recycling environmental tax revenues and explores whether income tax reductions can incentivize firms to shift from the unofficial to the official economy.