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Environmental expenditure spillovers: evidence from an estimated multi-area dsge model

This article constructs and estimates a multi-area dynamic stochastic general equilibrium model with a spatial simultaneous equation. Taking Beijing-Tianjin-Hebei region in China as an example, we explain the dynamic effect of environmental expenditure shock and its spillover effects. Environmental...

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Main Authors: Pan, X., Xu, H., Li, M., Zong, T., Lee, C. T., Lu, Y.
Format: Article
Published: Elsevier B. V. 2020
Subjects:
TP Chemical technology
Online Access:http://eprints.utm.my/id/eprint/86413/
https://dx.doi.org/10.1016/j.eneco.2019.104645
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spelling my.utm.864132020-10-13T02:13:44Z http://eprints.utm.my/id/eprint/86413/ Environmental expenditure spillovers: evidence from an estimated multi-area dsge model Pan, X. Xu, H. Li, M. Zong, T. Lee, C. T. Lu, Y. TP Chemical technology This article constructs and estimates a multi-area dynamic stochastic general equilibrium model with a spatial simultaneous equation. Taking Beijing-Tianjin-Hebei region in China as an example, we explain the dynamic effect of environmental expenditure shock and its spillover effects. Environmental expenditure has an obvious crowding-out effect on consumption and investment in local area, but has some positive influences on the economy of external regions. Over the business cycle, environmental expenditure shock in local area can well explain the volatility of real output and social investment in the last 52 quarters. However, environmental expenditure shocks in external regions have little contribution to the volatility of output and investment in local area. One interesting result is that the contribution of environmental expenditure shocks in external regions to the trend of pollution fluctuation is greater than that in local area. Elsevier B. V. 2020-02 Article PeerReviewed Pan, X. and Xu, H. and Li, M. and Zong, T. and Lee, C. T. and Lu, Y. (2020) Environmental expenditure spillovers: evidence from an estimated multi-area dsge model. Energy Economics, 86 . ISSN 0140-9883 https://dx.doi.org/10.1016/j.eneco.2019.104645 DOI:10.1016/j.eneco.2019.104645
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic TP Chemical technology
spellingShingle TP Chemical technology
Pan, X.
Xu, H.
Li, M.
Zong, T.
Lee, C. T.
Lu, Y.
Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
description This article constructs and estimates a multi-area dynamic stochastic general equilibrium model with a spatial simultaneous equation. Taking Beijing-Tianjin-Hebei region in China as an example, we explain the dynamic effect of environmental expenditure shock and its spillover effects. Environmental expenditure has an obvious crowding-out effect on consumption and investment in local area, but has some positive influences on the economy of external regions. Over the business cycle, environmental expenditure shock in local area can well explain the volatility of real output and social investment in the last 52 quarters. However, environmental expenditure shocks in external regions have little contribution to the volatility of output and investment in local area. One interesting result is that the contribution of environmental expenditure shocks in external regions to the trend of pollution fluctuation is greater than that in local area.
format Article
author Pan, X.
Xu, H.
Li, M.
Zong, T.
Lee, C. T.
Lu, Y.
author_facet Pan, X.
Xu, H.
Li, M.
Zong, T.
Lee, C. T.
Lu, Y.
author_sort Pan, X.
title Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
title_short Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
title_full Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
title_fullStr Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
title_full_unstemmed Environmental expenditure spillovers: evidence from an estimated multi-area dsge model
title_sort environmental expenditure spillovers: evidence from an estimated multi-area dsge model
publisher Elsevier B. V.
publishDate 2020
url http://eprints.utm.my/id/eprint/86413/
https://dx.doi.org/10.1016/j.eneco.2019.104645
_version_ 1681489483981127680
score 13.211869

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