Cristian Espinosa

Cristian Espinosa

PhD Candidate in Economics

University College London (UCL)

About me

I am a PhD candidate in Economics at UCL, supervised by Morten O. Ravn and Kalina Manova.

My Research areas are International Macroeconomics, Trade and Production Networks, and Empirical Macroeconomics.

Prior to joining UCL, I served as an Economic and Financial Analyst at the Central Bank of Chile.

Download my CV

Work in progress

The effect of carbon taxes on the exchange rate volatility in commodities exporting countries

This paper assess a new feature of carbon taxes in small open economies specializing in the export of a single commodity. This is, the ability to reduce the volatility of the real exchange rate in the Chilean economy. This is made trough the lens of a DSGE model that features an externality that affects the economy GDP. This originates from the burning process of fossil fuels, used for energy generation. We assume that this externality is the driver of climate change and that the government, seeking to internalize these damages, levies a Pigouvian tax in the energy sector. A key aspect of the tax is that it is optimal, as it accounts for the social cost of carbon. Under further assumptions, it can be expressed as a fraction of GDP, depending only on exogenous parameters: the carbon cycle depreciation structure parameters, the expected damages in GDP and the discount factor. The results shows that the tax: (i) cuts emissions by roughly 8% and increases the energy price by 11%, (ii) is a welfare improving policy and finally, (iii) reduces the real exchange rate variance by 1.8%. The stabilization of this variable is robust to the shock specification under assessment. In effect, when the economy is exposed to single and multiple copper price shocks, or multiple mixed shocks, the carbon tax helps to reduce the real exchange rate volatility by an amount ranging between 1.8% and 2.2%.


University College London (UCL)
MSc Times Series Econometrics
Profs. Raffaella Giacomini and Saleem Bahaj
Spring 2020, 2021, 2022, 2023, 2024

BSc Econometrics for Macroeconomics and Finance
Prof. Dennis Kristensen
Fall 2021, 2022, 2023

BSc The Economics of Money and Banking
Prof. Silvia Dalbianco
Spring 2019
Diego Portales University
MSc Econometric Theory
Prof. Rodrigo Montero
Spring 2011, 2012

Bsc Macroeconomics II
Profs. Ricardo Mayer and Rodrigo Montero
Fall 2012
University of Chile
MSc Econometrics I
Prof. Valentina Paredes
Fall 2013

BSc Ecometrics I
Prof Andres Sagner
Fall 2010, 2011, 2012
Institute of Banking Studies
BSc Financial Econometrics
Prof. Andres Sagner
Spring 2010