CO2 Emissions and Macroeconomy

Details

Supervisors

Monti, Francesca

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [120] en sciences économiques, orientation générale, à finalité approfondie

Abstract

This thesis examines the impact of oil supply news shocks on sectoral CO2 emissions in the U.S., building on the work of Känzig (2021). Using a surprise series, the baseline oil market VAR model is augmented with additional CO2 emission data. The findings confirm that oil supply news shocks lead to significant economic and environmental effects, particularly a substantial reduction in CO2 emissions across all sectors. The response patterns vary across sectors, with the transportation sector displaying the most immediate and pronounced reduction in emissions. Furthermore, the study highlights that emissions from natural gas and petroleum experience significant declines, while emissions from coal usage initially rise before eventually decreasing. These results suggest that sectoral dependencies on oil and the substitution effect play crucial roles in shaping the environmental impact of oil supply expectations.