TY  - BOOK
AU  - Gibson,John
AU  - Heutel,Garth
ED  - National Bureau of Economic Research.
TI  - Pollution and Labor Market Search Externalities Over the Business Cycle
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 2020; Hardcopy version available to institutional subscribers
N2  - We study the relationship between unemployment, environmental policy, and business cycles.  We develop a dynamic stochastic general equilibrium real business cycle model that includes both a pollution externality and congestion externalities from labor market search frictions, which generate unemployment.  We consider two policies to address the market failures: an emissions tax and a tax or subsidy on job creation.  With both policies present, the efficient outcome can be achieved.  When one policy is constrained or absent, we solve for the second best.  The absence of a vacancy policy to address the congestion externalities substantially affects the value of the emissions tax, both in steady state and over the business cycle
UR  - https://www.nber.org/papers/w27445
UR  - http://dx.doi.org/10.3386/w27445
ER  -