Green Recovery Policies for the COVID-19 Crisis: Modelling the Impact on the Economy and Greenhouse Gas Emissions
| Autor: | Sandra Rousseau, B. Lahcen, Johan Eyckmans, Y. Dams, Karl C. Vrancken, Jan Brusselaers, C. Da Silva Paes |
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| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Computable general equilibrium
Economic recession Economics and Econometrics Economics 020209 energy media_common.quotation_subject Small open economy Environmental Studies Public policy Social Sciences Environmental Sciences & Ecology 02 engineering and technology Management Monitoring Policy and Law PANDEMIC INFLUENZA Recession Article Business & Economics 0502 economics and business Greenhouse gas emissions 0202 electrical engineering electronic engineering information engineering Climate change 050207 economics Recovery plans Government budget media_common Science & Technology Pandemic 05 social sciences Sustainable investment COVID-19 Policy analysis CGE model Economy Greenhouse gas Damages Life Sciences & Biomedicine |
| Zdroj: | Environmental & Resource Economics Environmental and Resource Economics |
| ISSN: | 1573-1502 0924-6460 |
| Popis: | The COVID-19 pandemic induces the worst economic downturn since the Second World War, requiring governments to design large-scale recovery plans to overcome this crisis. This paper quantitatively assesses the potential of government investments in eco-friendly construction projects to boost the economy and simultaneously realise environmental gains through reduced energy consumption and related greenhouse gas emissions. The analysis uses a Computable General Equilibrium model that examines the macroeconomic impact of the COVID-19 crisis in a small open economy (Belgium). Subsequently, the impact of the proposed policy is assessed through comparative analysis for macroeconomic parameters as well as CO2 equivalent emissions for four scenarios. Our findings demonstrate that the COVID-19 pandemic damages economies considerably, however, the reduction in emissions is less than proportionate. Still, well-designed public policies can reverse this trend, achieving both economic growth and a disproportionally large decrease in emissions. Moreover, the positive effect of such a decoupling policy on GDP is even stronger during the pandemic than compared to the pre-COVID-19 period. This is the result of a targeted, investment-induced green transition towards low energy-intensive economic activities. Finally, this paper describes how the net effect on the government budget is positive through the indirect gains of the economic uptake. ispartof: ENVIRONMENTAL & RESOURCE ECONOMICS vol:76 issue:4 pages:731-750 ispartof: location:Netherlands status: published |
| Databáze: | OpenAIRE |
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