Macrofinancial risks of the transition to a low-carbon economy

Emanuele Campiglio and Frederick (Rick) van der Ploeg

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: A disorderly transition to a low-carbon economy may pose significant costs for both financial and nonfinancial firms through the stranding of physical assets, firms’ defaults, and volatility in asset prices. The spread of these disruptions through production and financial networks may exacerbate transition costs. Green financial and monetary policies may help to mitigate the cost of transitioning to a low-carbon future, but coordination among public institutions (governments, central banks, and financial supervisors) is needed. We discuss qualitative, empirical, modeling, policy, and institutional research on this topic and identify priorities for future research.

JEL-codes: G00 Q50 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2022-07-19
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Citations: View citations in EconPapers (2)

Published in Review of Environmental Economics and Policy, 19, July, 2022, 16(2), pp. 173 - 195. ISSN: 1750-6816

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Related works:
Journal Article: Macrofinancial Risks of the Transition to a Low-Carbon Economy (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:115959

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