Cross-Border Risks of a Global Economy in Mid-Transition

Etienne Espagne, William Oman, Jean-François Mercure, Romain Svartzman, Ulrich Volz, Hector Pollitt, Gregor Semieniuk and Emanuele Campiglio

No 2023/184, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes the cross-border risks that could result from a decarbonization of the world economy. We develop a typology of cross-border risks and their respective channels. Our qualitative and quantitative scenario analysis suggests that the mid-transition – a period during which fossil-fuel and low-carbon energy systems co-exist and transform at a rapid pace – could have profound stability and resilience implications for global trade and the international financial system.

Keywords: Climate change; transition risks; cross-border risks; trade; international money and finance.; asset purchase; energy export; baseline export; baseline GDP; cost of capital; Non-renewable resources; Climate policy; Exports; Global (search for similar items in EconPapers)
Pages: 59
Date: 2023-09-08
New Economics Papers: this item is included in nep-ene, nep-env, nep-ifn and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2023/184

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