Welfare Analysis Of The Collocation Of Monetary Policy And Environmental Policy

Economic development refers to the process of people's pursuit of maximizing their own interests.Through continuous technological progress and social system innovation,the economic scale continues to expand,and the overall social welfare is continuously improved.However,in the process of economic development and economic growth,along with the operation of machinery and equipment and changes in human activities,fossil energy is often consumed,resulting in environmental pollution.Before the start of the reform and opening up to the 18 th National Congress of the Communist Party of China,China's economy has achieved world-renowned achievements,the living conditions of the people have improved markedly,and the overall national strength of the country has continued to increase.The air quality index often “explodes”.At the same time that China has achieved rapid economic growth,it has also paid a heavy price of “high pollution and high energy consumption.” The disharmony between environmental quality and economic development has become an unavoidable reality.problem.After the eighteenth party,the government has placed the ecological environment in an increasingly important position.National leaders have emphasized that environmental improvement is the focus of future development on a variety of occasions,and even put environmental improvement and economic development on the same level.Therefore,in recent years,China 's ecological environment has clearly improved,but at the same time,China 's economic growth has been declining.If the reform and opening up have been divided into two phases,the party 's 18 th National Congress will be held.As a demarcation point,the economic development achieved world-renowned achievements before the party's eighteenth,but the ecological environment has indeed deteriorated.After the party's eighteenth,the ecological environment has significantly improved,but the economic growth rate has decreased.Growth and the ecological environment seem to be the two ends of a seesaw,making it easy to lose sight of each other.In the last two years,"both Jinshan Yinshan and green water and green mountains" has become the consensus of more and more people.How to ensure economic development and improve environmental quality has become a major challenge facing China.In recent years,environmental pollution incidents such as smog have frequently occurred,and the air quality index has often been “exploded”.While achieving rapid economic growth,China has also paid a heavy price of “high pollution,high energy consumption”.The inconsistency between environmental quality and economic development has become an unavoidable realistic problem.Macro economic operation under various uncertainties and exogenous shocks,and the evolution of the atmospheric pollution and environmental quality is closely related to the economic cycle,for the purpose of reduction of environmental policy and the economic individual decision making under uncertainty have important influence,so the ecological environment and macro economic operation and the dynamic relationship between environmental policy and monetary policy becomes extremely urgent.In recent years,the development of environmental macroeconomics has provided a new tool for the study of environmental and economic problems.In real economic cycle model as the prototype of dynamic stochastic general equilibrium(DSGE)theory of operation of macro economy has become the current research of the basic framework,and the new Keynesian are introduced on the basis of actual economic cycle theory of imperfect competition and price stickiness,which can better explain China's economic fluctuation and monetary policy effect of the relevant facts.To this end,a new Keynesian dynamic stochastic general equilibrium(nk-dsge)model with embedded environmental factors is established in this paper to study the dynamic effects of coordination and collocation of environmental and monetary policies on economic fluctuations and environmental quality.According to the actual situation and the comprehensive consideration of the selection of monetary policies and environmental policies in domestic and foreign literatures,this paper divides monetary policies into quantitative monetary policies and interest rate monetary policies(1),and divides environmental policies into total carbon emission policies,carbon emission intensity policies and carbon emission tax policies,(2)Two monetary policies and three environmental policies form exactly six policy combinations.(3)For the purpose of this article related parameters in the model,because the parameters affecting the steady state,the literature at home and abroad have had a relatively stable value,thus affecting the steady state parameters,in this paper,the parameter calibration method is used to give,for the influence of dynamic parameters,the use of the bayesian estimate about according to the data reliability and availability,this paper chooses Chinese output,consumption and the rate of inflation,these three kinds of data,and through the bayesian measurement method of the model and estimate its parameters,an important assignment,Firstly,this paper analyzes the response path of model variables to exogenous shocks under the combined action of environmental policy and monetary policy,so as to compare the degree of deviation from steady-state of China's macroeconomic variables in the combination of relevant environmental policy and monetary policy.And then according to the bayes factor dynare software output,from the view point of empirical fitting the most close to the actual situation in China monetary policy and environmental policy combination,finally by means of structural equation model into the second order approximate solution of six kinds of monetary policy and the social welfare level of environmental policy collocation,is different from the perspective of social welfare policy mix in the environment quality and economic development that the policy goal of performance.The study finds that :(1)the environmental policy based on carbon emission intensity makes the model variable more sensitive to technology impact,and technological innovation makes the output rise.Since under the carbon intensity policy,the carbon emission is proportional to the output,so the carbon emission also increases in the same proportion,causing strong economic fluctuations.(2)in the case of large carbon emissions by enterprises and serious air pollution,the government may,on the one hand,adopt the environmental policy of reducing the carbon emission ceiling,and on the other hand,adjust the interest rate according to the interest rate monetary policy rules to better achieve the policy objectives.(3)The impact of environmental technology on improving the ecological environment has a small impact on the macro economy.The government encourages the development of environmental technology to solve environmental problems in macro economic development.(4)Carbon tax policies can achieve better welfare enhancement in combination with interest rate rules and quantitative rules,and should be an important alternative consideration for the government in formulating environmental policies in the future.In the long run,if we want to achieve better social welfare improvement,the government should match environmental policy tools based on carbon emissions taxes with monetary policy tools based on interest rate rules.