Our CIES Head of Research, Joëlle Noailly, has co-written an article with David Popp and Francesco Vona in VOX EU, on the impact of past green fiscal stimulus on employment as a response to the COVID-19 crisis.
Many governments worldwide are currently considering fiscal recovery packages to address the Covid-19 crisis. This column analyses the impact of past green fiscal stimulus on employment. Focusing on the American Recovery and Reinvestment Act after the Global Crisis, it finds that that the green stimulus was particularly effective in creating jobs in the long run, but not in the short run. Hence, while green stimulus packages are useful to reorient the economy and direct it onto a green trajectory in the longer run, they are less effective in restarting the economy quickly.
To read the full article, please follow this link.