Lecture on the Environmental Multi-Sector DSGE Model of the Deutsche Bundesbank (February 2025)

Nikolai Stähler (Deutsche Bundesbank) gave the master’s students in Economics at FAU a great introduction to the Bundesbank’s Environmental Multi-Sector DSGE Model (EMuSe), a cutting-edge framework for analyzing the macroeconomic impacts of climate policy.

This model is able to capture the international and sectoral dimensions of climate change while allowing researchers to understand the impact of critical policy interventions, such as carbon pricing, border adjustments, and climate clubs.

Dr. Stähler helped our students explore the impacts of orderly and disorderly transitions to combat climate change and the effects of international cooperation. EMuSe is certainly a very useful tool in order to analyze one of the biggest challenges of our time.

In addition to his visit, four of our master’s students were given the opportunity to work with the model in seminar theses.