The Bundesbank’s Environmental Multi-Sector DSGE Model EMuSe and Selected Applications
Title: The Bundesbank’s Environmental Multi-Sector DSGE Model EMuSe and Selected Applications
Abstract: Climate change and climate policy will have far-reaching economic implications, thereby also posing new challenges for macroeconomic analysis. This is partly because climate risks have an important global dimension. Moreover, climate change and climate polices are likely to affect different economic sectors to varying degrees. Hence, in order to adequately gauge the macroeconomic implications of climate risks, models with sufficient regional and sectoral differentiation are needed. Against this background, we developed the environmental multi-sector dynamic stochastic general equilibrium model EMuSe. We present the main features of the model and selected applications.