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Arthur A, van Benthem ; Daniel, Spiro ; Gustav, Engstrom ; Johan, Gars ; Niko, Jaakkola ; Daniel, Spiro ; Niko, Jaakkola ; Therese, Lindahl. (2020) What Policies Address Both the Coronavirus Crisis and the Climate Crisis?.
In: CESifo Working Paper Series. RePEc:ces:ceswps:_8367.
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Governments have already been announcing very large investments in infrastructure as part of their stimulus programs (New Europe, 2020). Following the coronavirus stimulus, public debt stocks will be substantially higher, making it unlikely there will be appetite for a further round of ‘green’ public investment in the near future. From a coronavirus perspective, the immediate benefit of such investment stimulus is unclear. The stimulus would primarily operate through the construction sector, but this sector has not seen severe layoffs due to the health crisis. To the extent that there is potential for sufficiently skilled workers to move in from other sectors, there can also be beneficial short-run effects on overall layoffs.
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