BEGIN:VCALENDAR VERSION:2.0 PRODID:-//hacksw/handcal//NONSGML v1.0//EN CALSCALE:GREGORIAN BEGIN:VTIMEZONE TZID:Europe/London BEGIN:STANDARD TZNAME:GMT DTSTART:19710101T020000 TZOFFSETFROM:+0100 TZOFFSETTO:+0000 RRULE:FREQ=YEARLY;BYMONTH=10;BYDAY=-1SU END:STANDARD BEGIN:DAYLIGHT TZNAME:BST DTSTART:19710101T010000 TZOFFSETFROM:+0000 TZOFFSETTO:+0100 RRULE:FREQ=YEARLY;BYMONTH=3;BYDAY=-1SU END:DAYLIGHT END:VTIMEZONE BEGIN:VEVENT DTEND;TZID=Europe/London:20221020T140000 UID:https://www.lse.ac.uk/granthaminstitute/?post_type=event&p=62078 DTSTAMP;TZID=Europe/London:20260423T115635Z LOCATION:FAW 9.04\, LSE Campus and online DESCRIPTION:

Ghassane Benmir will be discussing the paper 'The Distributional Costs of Net-Zero: A HANK Perspective'

Abstract:

This paper investigates the distributional impacts of implementing the net-zero emissions target in the U.S. for the 2050 horizon. We model a heterogeneous household economy and show that net-zero policy increases consumption and wealth in the long run but induces distributional macroeconomic disparities in the short/medium run (e.g. by 2035\, a 6-10% increase in households facing the borrowing constraint). We then show how distributing revenue from the carbon policy could partially offset consumption losses and smooth the net-zero transition. We also extend our analysis to the case of sticky prices and show how net-zero emissions induces inflationary pressure over the long run\, which could represent a challenge for monetary policy conduction in a world with high inflation.

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URL;VALUE=URI:https://www.lse.ac.uk/granthaminstitute/events/the-distributional-costs-of-net-zero-a-hank-perspective-ghassane-benmir/ SUMMARY:The Distributional Costs of Net-Zero: A HANK Perspective | Ghassane Benmir DTSTART;TZID=Europe/London:20221020T123000 END:VEVENT END:VCALENDAR