Financial impacts of climate change mitigation policies and their macroeconomic implications: a stock-flow consistent approach

Emmanuel Bovari (), Gaël Giraud () and Florent Mc Isaac ()
Additional contact information
Emmanuel Bovari: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Gaël Giraud: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, AFD - Agence française de développement, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Florent Mc Isaac: AFD - Agence française de développement
Authors registered in the RePEc Author Service: Florent John McIsaac

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: To what extent can worldwide carbon pricing foster the transition towards a low-carbon economy and mitigate the effects of global warming? We address this question by assessing the financial impacts and macroeconomic implications of carbon pricing and public subsidies. More specifically, we evaluate the extent to which such policies are sustainable by computing the probability of remaining below two thresholds that we argue to be indicative of the stability of our current economy and climate: (1) a temperature anomaly above +2°C (a commonly acknowledged target, including in the 2015 Paris Agreement, to potentially avoid nonlinearities in the climate system) and (2) a large global debt-to-output ratio of 270%.

Keywords: Ecological macroeconomics; carbon pricing; stock-flow consistency; credit rationing; integrated assessment (search for similar items in EconPapers)
Date: 2020-02-07
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in Climate Policy, 2020, 20 (2), pp.179-198. ⟨10.1080/14693062.2019.1698406⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-02800491

DOI: 10.1080/14693062.2019.1698406

Access Statistics for this paper

More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL
Bibliographic data for series maintained by Caroline Bauer ().