Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 10th Sept 2026, 07:07:39pm CEST (Norway)
External resources will be made available 30 min before a session starts. You may have to reload the page to access the resources.
|
Daily Overview |
| Session | |
|
Climate policy and energy production Location: Auditorium P: Finn Kydland Session Chair: Laura Egelmeers, Utrecht University (UU) | |
    | |
Navigating Climate Policy Shocks: Optimal Monetary Policy Responses 1: Tor Vergata University; 2: Bank of England; 3: Deutsche Bundesbank How should monetary policy respond to climate policy shocks? We develop an Environmental New-Keynesian model to study the macroeconomic effects of carbon pricing and green subsidy shocks and the optimal monetary policy responses. Given the imperfect complementarity between energy and other production inputs or consumption goods, optimal monetary policy should aim to dampen real output fluctuations while ensuring long-term price stability. This implies that the policy rate should be temporarily reduced in response to a carbon price hike and raised in response to a green subsidy increase. Our findings show that dual mandate Taylor rules outperform those targeting only inflation. Additionally, rules focusing on core inflation result in lower welfare costs compared to those targeting headline inflation. However, this difference is reduced in response to a green subsidy shock or when the short-term dependence of the economy on fossil fuels and energy increases. | |