Investigating government spending on reducing the effects of climate change in Iran using a stochastic dynamic general equilibrium model

February 12, 2024Journal of Agricultural Economics Research تحقیقات اقتصاد کشاورزیOpen Access

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Key Points

The study investigates how increasing government spending can reduce the effects of climate change, particularly in agriculture.
Used a dynamic stochastic general equilibrium (DSGE) model to analyze scenarios.
Focused on government spending in agricultural and non-agricultural sectors.
Assessed changes in wages, price index, and labor efficiency in agriculture.
Government spending increases lead to higher wages in both sectors.
Price index (P) decreased, indicating lower costs for consumers.
Labor efficiency in agriculture improved, suggesting better productivity.

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Examines government spending effects on agriculture and non-agriculture in Iran, suggesting impactful outcomes.

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Rahnama et al. (2024) studied this question.

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