Journal article
What Policies Address Both the Coronavirus Crisis and the Climate Crisis?

Engström, G. J. Gars, N. Jaakkola, T. Lindahl, D. Spiro and A. van Benthem. 2020. What Policies Address Both the Coronavirus Crisis and the Climate Crisis?. Environmental and Resource Economics volume 76:789–810.

The coronavirus pandemic has led many countries to initiate unprecedented economic recovery packages. Policymakers tackling the coronavirus crisis have also been encouraged to prioritize policies which help mitigate a second, looming crisis: climate change. We identify and analyze policies that combat both the coronavirus crisis and the climate crisis. We analyze both the long-run climate impacts from coronavirus-related economic recovery policies, and the impacts of...

Journal article
Carbon pricing and planetary boundaries

Engström G., J. Gars, C. K. Krishnamurthy, D. Spiro, R. Calel, T. Lindahl and B. Narayanan. 2020. Carbon pricing and planetary boundaries. Nature Communications 11(4688).

Human activities are threatening to push the Earth system beyond its planetary boundaries, risking catastrophic and irreversible global environmental change. Action is urgently needed, yet well-intentioned policies designed to reduce pressure on a single boundary can lead, through economic linkages, to aggravation of other pressures. In particular, the potential policy spillovers from an increase in the global carbon price onto other critical Earth system processes...

Beijer Discussion Paper
What policies address both the coronavirus crisis and the climate crisis?

Engström, G. J. Gars, N. Jaakkola, T. Lindahl, D. Spiro and A. van Benthem. 2020. Beijer Discussion Paper 271: What policies address both the coronavirus crisis and the climate crisis?. Beijer Discussion Paper Series.

The coronavirus pandemic has led many countries to initiate unprecedented economic recovery packages. There have been widespread calls to prioritize dealing with a second, looming crisis—climate change—when designing these economic stimulus packages. In this paper we identify policies that promote both goals simultaneously. We analyze both the long-run climate impacts from coronavirus-related economic recovery policies, and the impacts of long-run climate policies on economic recovery...

Journal article
Measuring the impact of agricultural production shocks on international trade flows

Ferguson, S.M., and J. Gars. 2019. Measuring the impact of agricultural production shocks on international trade flows . European Review of Agricultural Economics https://doi.org/10.1093/erae/jbz013.

The purpose of this study is to measure the sensitivity of traded quantities and trade unit values to agricultural production shocks. We develop a general equilibrium model of trade in which production shocks in exporting countries affect both traded quantities and trade unit values. The model includes per-unit trade costs and develops a methodology to quantify their size exploiting the trade unit value data. Using...

Journal article
Fuel for economic growth?

Gars. J. and C. Olovsson. 2019. Fuel for economic growth?. Journal of Economic Theory 184:104941.

Using data for 134 countries, we document that countries deriving a larger share of their energy from fossil fuel are richer and grow faster. We then set up an endogenous growth model where final output is produced with a non-energy and two substitutable energy intermediate goods: fossil fuel and biofuel. With non-energy and energy goods being gross complements, and with higher costs for improving the...

Beijer Discussion Paper
The Unintended Consequences of a Global Carbon Tax

Engström., G, J. Gars, C.K.. Krishnamurthy, R. Calel, T. Lindahl, B.G. Narayanan, and D. Spiro. 2018. Beijer Discussion Paper 261: The Unintended Consequences of a Global Carbon Tax. Beijer Discussion Paper Series.

Journal article
Climatic tipping points and optimal fossil fuel use

Engström, G., and J. Gars. 2016. Climatic tipping points and optimal fossil fuel use. Environmental and Resource Economics 65(3): 541-571.

The economics of climate change is characterized by many uncertainties regarding, for instance, climate dynamics, economic damages and potentially irreversible climate catastrophes. Using an optimal growth model of a fossil-fuel-driven economy subject to cli- mate externalities and potentially irreversible climatic regime shifts, this paper contributes to the understanding of how the risk of such events impacts on optimal fossil-fuel use, carbon taxes and fossil-fuel prices...

Journal article
Optimal taxation in the macroeconomics of climate change

Engström, G. and J. Gars . 2015. Optimal taxation in the macroeconomics of climate change. Annual Review of Resource Economics 7:127-150.

Climate change has in recent years moved to the forefront of the policy scene. At the same time, the research literature on macroeconomic aspects of climate change has grown and broadened significantly. In this review, we survey and discuss this literature, with special attention given to results that help shed light on important qualitative questions regarding how an optimal carbon tax should be set. The...

Journal article
Why Ecologists Should Care about Financial Markets

Galaz, V., J. Gars, F. Moberg, B. Nykvist, and C. Repinski. 2015. Why Ecologists Should Care about Financial Markets. Trends in Ecology & Evolution 30(10):571-580.

Financial actors such as international banks and investors play an important role in the global economy. This role is shifting due to financial innovations, increased sustainability ambitions from large financial actors, and changes in international commodity markets. These changes are creating new global connections that potentially make financial markets, actors, and instruments important aspects of global environmental change. Despite this, the way financial markets and...

Beijer Discussion Paper
Climatic tipping points and optimal fossil fuel use

Engström, G., and J. Gars. 2015. Beijer Discussion Paper 250: Climatic tipping points and optimal fossil fuel use. Beijer Discussion Paper Series.

The economics of climate change is characterized by many uncertainties, including climate dynamics, economic damages and potentially irreversible climate catastrophes. Using an optimal growth model of a fossil-fuel driven economy subject to a climate externality and potentially irreversible climatic events, this paper contributes to the understanding of how the risk of such events impacts on optimal fossil-fuel over time. Catastrophic events are modelled as irreversible...