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McCarthy_05061900_2020.pdf
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- One of the “European Green Deal" objective is to implement new regulation to ensure that household appliances will become more sustainable. This thesis expands a multi-sector New Keynesian model with an embodied technology factor and a maintenance sector. The outcome shows that the welfare of households increases when their stock of durables is maintained and at the same time a positive result in environmental quality is obtained. These results contribute to support the justification of the new legislation as formulated in the “European Green Deal" to make household appliances more sustainable.