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

Carbon Policy, Inequality, and the Macroeconomics of the Green Transition

Alessandro Sardone (Halle Institute for Economic Research) examines how, despite the EU’s unwavering commitment to net-zero by 2050 and carbon pricing as its central policy instrument, the macroeconomic and distributional consequences of the transition remain poorly understood — particularly how rising energy costs ripple through production, inflation, and household incomes across income groups, and how policy design ultimately shapes these dynamics.

Do common shocks drive changes in aggregate emissions intensity?

Fulvia Marotta (Smith School, DNB) , Xiyu Ren (Smith School and INET), and Francois Lafond (INET) examine industry-level emissions intensity in the UK from 1990 to 2022, using emissions data constructed from activity-based environmental accounts and find evidence of co-movement.

Warning Words in a Warming World

Emanuele Campiglio (University of Bologna, EIEE, LSE), Jerome Deyris (Sciences Po), Davide Romelli (Trinity College Dublin) and Ginevra Scalisi (Sant’Anna Pisa) present a new dataset on central banks’ communication about climate change and ask what drives institutions engagement with environmental issues, how do they frame these new challenges within their existing mandates and how do financial markets respond to this expanding scope of central bank communication.

Climate news shocks and their economic impact

Maria Josè Arteaga Garavito , Riccardo Colacito , Massimiliano Mariano Croce and Biao Yang study the relationship between climate news and key economic variables, such as exchange rates, capital flows, and stock returns.

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