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Green preferences.
- Source :
- Environment, Development & Sustainability; Apr2023, Vol. 25 Issue 4, p3211-3253, 43p
- Publication Year :
- 2023
-
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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 1387585X
- Volume :
- 25
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Environment, Development & Sustainability
- Publication Type :
- Academic Journal
- Accession number :
- 162508760
- Full Text :
- https://doi.org/10.1007/s10668-022-02179-9