Maria Sole Pagliari

“No country is an island. International cooperation and climate change”

Event description

Maria Sole Pagliari will present findings from her recent working paper (with Massimo Ferrari) on the cross-country implications of climate-related mitigation policies. From the abstract:

“[W]e set up a two-country, two-sector (brown vs green) DSGE model with negative production externalities stemming from carbon-dioxide emissions. We estimate the model using US and euro area data and we characterize welfare-enhancing equilibria under alternative containment policies. Three main policy implications emerge: i) fiscal policy should focus on reducing emissions by levying taxes on polluting production activities; ii) monetary policy should look through environmental objectives while standing ready to support the economy when the costs of the environmental transition materialize; iii) international cooperation is crucial to obtain a Pareto improvement under the proposed policies. We finally find that the objective of reducing emissions by 50%, which is compatible with the Paris agreement’s goal of limiting global warming to below 2 degrees Celsius with respect to pre-industrial levels, would not be attainable in absence of international cooperation even with the support of monetary policy.”


Pierre Monnin
Senior Fellow, CEP

Maria Sole Pagliari

Maria Sole Pagliari is a Research Economist in the Monetary and Financial Analysis Division at Banque de France. Prior to that, she was an economist (Graduate Programme) at the European Central Bank. Her research interests include monetary policy, international finance, macroeconometrics and economics of climate change. She received her PhD in Economics from Rutgers University in 2020.

Paper and slides

"No country is an island. International cooperation and climate change" (Paper)

"No country is an island. International cooperation and climate change" (Slides)



Related Webinars

May 15, 2023
Julian di Giovanni
Head of the Climate Risk Studies Department in the Research Group
Federal Reserve Bank of New York
April 17, 2023
Irene Monasterolo
Professor of Climate Finance
EDHEC Business School

Young Scholars

April 10, 2023
Ishan Nath
Federal Reserve Bank of San Francisco

Donate Now