A1847
Title: Identification of climate policy uncertainty shocks: A proxy-SVAR approach
Authors: Giovanni Angelini - University of Bologna (Italy) [presenting]
Luca De Angelis - University of Bologna (Italy)
Luca Fanelli - University of Bologna (Italy)
Marco Maria Sorge - University of Salerno (Italy)
Abstract: The evaluation and measurement of the effects of the uncertainty about the policy response to climate change on macroeconomic outcomes is one of the current key challenges in modern economic literature and has recently received considerable attention. The macroeconomic effects of changes in climate policy uncertainty (CPU) are investigated by identifying the CPU shock using the distribution of extreme temperatures as a proxy variable in a (proxy) structural vector autoregressive analysis. The results show a negative impact of the CPU shock on real economic activity.
