Macroeconomic effects of the transaction costs for environmental regulation

The aim of the project is to determine the macroeconomic consequences of the transaction costs arising from the introduction of legislation. In many cases, the conversion triggers investments that are made by the norm addressees (business, administration and citizens). These investments incur as direct costs. However, the investments required by law also lead to an increased demand for goods and services in numerous sectors of the economy. A key finding is that the indirectly triggered effects in input sectors further up the value chain are at least as relevant to the overall economic impact as the direct effects.