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I am a third-year PhD candidate in Economics, working under the supervision of Gauthier Vermandel. I am affiliated with Université Paris-Dauphine - LEDa and DARES, the statistical office of the French Ministry of Labor.
My research interests are in macroeconomics, labor economics, and environmental economics. My research focuses on integrating micro-founded labor market frictions into quantitative climate-economy models.
[CV]
You can contact me at camille3.cousin[at]gmail[dot]com
Labor market frictions and the amplified transition to net zero
Abstract: This paper show that ignoring labor market frictions fundamentally mismeasures the macroeconomic costs and benefits of climate policy, including the scope for a double dividend from revenue recycling. We establish this result in an estimated nonlinear macro-climate model with search-and-matching frictions and endogenous carbon dynamics, disciplined by U.S. data. In the model, carbon pricing and climate damages alter firms’ job-creation incentives, generating persistent unemployment and amplifying transition dynamics. Labor market frictions substantially deepen short-run contractions under net-zero policies while nearly doubling long-run gains from avoided damages. Accounting for labor market structure is therefore essential for the efficient design and evaluation of decarbonization policy.
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