Environmental Policy,Price Stickiness And Macroeconomic Fluctuation

China’s announcement to achieve carbon peak by 2030 and carbon neutralization by 2060 not only shows our determination and confidence in carbon emission reduction,but also shows the responsibility of major countries in the world,which is of far-reaching and profound significance.The emission and response of greenhouse gases are not only related to environmental problems,but also related to economic development.For carbon emission reduction policies,it is very important to take into account environmental protection and economic development.Therefore,the choice of policy should consider the impact of the policy itself on economic fluctuations.Based on this,this thesis intends to conduct a preliminary discussion on the effects of different carbon emission reduction policies from the perspective of macroeconomic fluctuations.By constructing the new Keynesian DSGE model,this thesis brings the carbon emission equation,carbon emission reduction rules and three different environmental policies into the analysis framework,and discusses the different roles of stickiness factors(price stickiness and wage stickiness)in the impact of technology shock,government expenditure shock and monetary policy shock on major macroeconomic variables.It also expounds the subsequent economic logic,and makes a comparative study on the economic effects of three environmental policies.Through the analysis of this thesis,we get the following conclusions:compared with price stickiness,the existence of wage stickiness will expand the impact of exogenous shocks;The increase of nominal stickiness intensifies macroeconomic volatility,that is,the greater the stickiness,the more unstable the macroeconomic variables become;Compared with the situation without policy,the implementation of environmental policy will lead to the decline of the steady-state level of main macroeconomic variables,but will improve the welfare level of consumers and reduce the volatility of macro-economy.The economic expansion effect under the quota emission policy is less than that under the carbon emission tax and intensity target policy,that is,the quota emission policy suppresses macroeconomic fluctuations and acts as an "automatic stabilizer".The above conclusions have important reference significance for China to formulate appropriate carbon emission reduction policies.Price stickiness and wage stickiness will cause market distortion,greater economic volatility and efficiency loss.Therefore,we need to further unblock the market mechanism,reduce market friction and reduce the losses caused by economic uncertainty.In addition,although the quota emission policy can restrain economic fluctuations,it will also hinder economic growth.Allocating more resources to emission reduction will not only waste resources,but also increase the emission reduction cost of enterprises,which is not conducive to the development and growth of enterprises.Especially for developing countries,the restrictive effect of quota emission policy will be greater,and the standards and rules of carbon emission tax policy are difficult to be unified.Therefore,for developing countries in transition and upgrading,carbon emission intensity target policy is the best choice.The 14th five year plan also clearly points out that the carbon emission reduction policy should focus on the intensity target,supplemented by the total amount control policy.The central economic work conference in December 2021 also set the tone for double carbon development and turned to "double control" of carbon emission intensity and total amount as soon as possible.Therefore,in the development of the next few years,we should choose the emission reduction policy focusing on the carbon emission intensity target,supplemented by total amount control,steadily promote the carbon emission reduction work,and strive to achieve the double carbon target on schedule.