Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300191 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 10.2024
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
This paper shows how to combine microeconometric evidence on the effects of environmental policy with a macroeconomic model, accounting for general equilibrium spillovers that have mostly been ignored in the literature. To this end, we study the effects of a recent US air pollution policy. We use regression evidence on the policy's impact across industries and local labor markets to calibrate a quantitative spatial model allowing for general equilibrium spillovers. Our model implies that the policy lowered emissions by 11.1%, but destroyed approximately 250'000 jobs. Ignoring spillovers overestimates job losses in polluting industries, but underestimates job losses in clean industries.
Subjects: 
Environmental Policy
Employment
Trade
Clean Air Act
JEL: 
E24
Q50
Q53
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.