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New publication: The response of CO2 emissions to the business cycle: New evidence for the U.S.

Torben Klarl has published an article in Energy Economics, the leading journal for energy economics, on estimating the elasticity of emissions over the business cycle. Based on rolling regressions and a regime-change model, the author finds evidence for a regime dependent emission elasticity for the US. The paper thus provides valuable information for the estimation and calibration of so-called dynamic general equilibrium models in the environmental context, also known as environmental DSGE models, which are used to estimate automation trends and the associated effects on energy demand in an economy. They are studied within the framework of the Diginomics project Energy system transformation, digitalization, and labor market: Effects on growth and distribution.

This contribution is also available as Discussion Paper #1902 in the series of Bremen Papers on Economics & Innovation of the Institute for economic research and policy (ierp).

Link to the discussion paper: