The E-axes Forum on Climate Change, Macroeconomics, and Finance

Alissa M. Kleinnijenhuis

“The Great Carbon Arbitrage”

Event description

Alissa will present findings from her recent paper (with Tobias Adrian and Patrick Bolton), “The Great Carbon Arbitrage.”

From the abstract:

We measure gains from phasing out coal as the social cost of carbon times the quantity of avoided emissions. By comparing the present value of benefits from avoided emissions against the present value of costs of ending coal and replacing it with renewables, our conservative baseline estimate is that the world can realize a net gain of \$85 trillion. A way to reap this huge gain is to strike a Coasian bargain, as a complement to incomplete carbon pricing, to provide blended financing to replace coal with renewables. We quantify requisite climate financing for supplanting coal with renewables across the world.


You can download the data file here.



Anastasia Pappas
Founder, E-axes Forum

Alissa M. Kleinnijenhuis

Alissa M. Kleinnijenhuis has been a Research Scholar at the Stanford Institute of Economic Policy Research (SIEPR) at Stanford University and a Research Associate at the Institute for New Economic Thinking (INET) at the Oxford Martin School of the University of Oxford. Alissa is a Co-PI of a Market Ecology & Financial Stability Grant, supervising four PhD students, and Co-Founder of the Environmental Stress Testing and Scenarios Program (ESTS), both at the University of Oxford. She taught a novel course at Stanford University in Fall 2021 on Climate Finance. Her research examines how finance can advance the public good, focusing on how the financial sector can be leveraged as a first-order driver of a climate change solution. Dr. Kleinnijenhuis holds a BS from Utrecht University in Economics and Mathematics (cum laude), a MSc in Mathematics and Finance from the Imperial College London, and a DPhil (PhD) in Mathematical and Computational Finance from the University of Oxford. She was a Postdoctoral Fellow at the MIT Sloan School of Management and the MIT Golub Centre for Finance and Policy (GCFP) at the Massachusetts Institute of Technology. She has been a Visiting Scholar at Yale University and the University of California Santa Barbara, and has conducted research at Morgan Stanley and Allianz Global Investors.

Paper and slides

The Great Carbon Arbitrage (Paper)

The Great Carbon Arbitrage (Slides)



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