Search Results

Climate change, climate policy, and the macroeconomy

Ploeg, Frederick van der; Rezai, Armon - 2026

A review is presented of the macroeconomics of climate change and policy. The review starts with a tractable workhorse model of the macroeconomics of climate and carbon pricing. It then discusses extensions to multiple countries. A discussion of the effects of macroeconomic and climate...

Persistent link: https://www.econbiz.de/10015603793

Triggering the green transition : policies for transitional dynamics

Ploeg, Frederick van der; Venables, Anthony - 2026

Using a dynamic model in which heterogenous consumers make forward-looking choices between brown and green durable goods, we establish conditions under which peer effects lead to multiple steady states. There is a critical threshold that policy needs to exceed to create a feasible transition...

Persistent link: https://www.econbiz.de/10015639076

On the unintended consequences of critical mineral bans : the exploration channel

Arezki, Rabah; Ploeg, Frederick van der - 2026

Critical mineral maps portray known resource endowments as fixed geographic facts, yet the resource base is endogenous to both demand conditions and institutional factors. The prevailing framing of critical mineral scarcity ignores the extent to which resources are discovered only when it is...

Persistent link: https://www.econbiz.de/10016061917

The critical minerals curse

Arezki, Rabah; Ploeg, Frederick van der - 2025

Economic super-powers are racing to control critical minerals in developing economies fueling conflict, environmental damage and poverty. In this paper, we first explore what could well constitute a new “critical minerals curse”. We then highlight the dualism of institutions required for...

Persistent link: https://www.econbiz.de/10015421091

The VAT paradox in resource dependent economies

Arezki, Rabah; Ploeg, Frederick van der; Graziosi, … - 2025

The introduction of the Value Added Tax (VAT) has been widely perceived as a successful instrument, boosting government revenue and stimulating industrialization. However, in countries that are heavily dependent on exports of natural resources the introduction of the VAT has led on average to...

Persistent link: https://www.econbiz.de/10015421102

Easy money, easy spending : evidence from commodity export windfalls

Arezki, Rabah; Nguyen, Hieu; Ploeg, Frederick van der - 2025

When wealth or income rises suddenly, the propensity for that "easy money" to be directed towards unproductive use, "easy spending", may rise. The cross-country relationship between conspicuous consumption and revenue windfalls is explored by estimating the response of demand for imports of...

Persistent link: https://www.econbiz.de/10015455023

Bad Samaritans in foreign aid : evidence from major mineral discoveries

Arezki, Rabah; Camara, Youssouf; Ploeg, Frederick van der; … - 2024

This paper explores whether foreign aid is self-interested, exploiting the timing and size of major mineral discoveries. We first analyze the effect a resource discovery in a two-by-two donor-recipient model with conflict about natural resources, using a contest success function. We then...

Persistent link: https://www.econbiz.de/10015081347

Political economy of climate change adaptation : loss of habitat and rising inequality

Straten, Yasmine van der; Perotti, Enrico; Ploeg, … - 2024

We study the evolution of voter support for climate policies aimed at containing the effect of climate risk, as weather conditions worsens at a time of rising economic inequality. Households differ in age, beliefs and income, and the scale of intervention to preserve habitable land reflects the...

Persistent link: https://www.econbiz.de/10014478722

Structural change and the climate risk premium during the green transition

Zhou, Sophie Lian; Ploeg, Frederick van der - 2023

We study climate change in a model with a carbon-intensive and a green sector, each subject to stochastic sectoral productivity shocks, and show how the underlying economic structure affects the risk-adjusted discount rate and the climate risk premium in the social cost of carbon (SCC)....

Persistent link: https://www.econbiz.de/10014444691

Self-enforcing climate coalitions for farsighted countries : integrated analysis of heterogeneous countries

Vosooghi, Sareh; Arvaniti, Maria; Ploeg, Frederick van der - 2022

This paper studies the formation of international climate coalitions by heterogeneous countries. Countries rationally predict the consequences of their membership decisions in climate negotiations. We offer an approach to characterise the equilibrium number of coalitions and their number of...

Persistent link: https://www.econbiz.de/10013205091