Green Financial and Monetary Policy in the Low-Carbon Transition: Drivers and Impacts
Lukas Rischen (Humboldt University) examines how green fiscal and monetary policy instruments shape renewable energy investment and accelerate countries’ progress along their low-carbon transition pathways.
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.
Carbon Markets and Industry Dynamics: Exit, Entry and Reallocation
Flora Marchioro (USI) and Antonia Pacelli (TSE) highlight how the distributional design of carbon markets can influence industry structure and environmental outcomes
Picking Up the PACE: Loans for Residential Climate-Proofing
Honorable Mention from the 2025 E-Axes Forum Research Committee
Aymeric Bellon (UNC Kenan Flager), Cameron LaPoint (Yale), Francesco Mazzola (ESCP) and Guosong Xu (Rotterdam School of Management) examine the Property Assessed Clean Energy (PACE) loan program
From Floods to Fossil Fuels: Ranking Climate Risk Across Nations
Matteo Ferrazzi, Fotios Kalantzis, and Sanne Zwart (EIB) introduce a novel, multidimensional index that assesses climate risk exposure across more than 170 countries
The Global Effects of Carbon Border Adjustment Mechanisms
Kim Clausing (UCLA), Jonathan Colmer (University of Virginia), Allan Hsiao (Stanford University), Catherine Wolfram (MIT Sloan) shed like on the implications of the introduction of EU’s CBAM on low-income countries.
Systemic Climate Risk
Honorable Mention from the 2024 E-Axes Forum Research Committee
Tristan Jourde (Banque de France) and Quentin Moreau (The Hong Kong University of Science and Technology) introduce a market-based framework for assessing how extreme climate risks affect the financial sector and for monitoring exposures to both physical and transition risks in near real time.
When the Best is the Enemy of the Good: Minimizing the Impact of Political Constraints on Climate Policy Costs
Adam Bauer (University of Illinois Urbana-Campaign, World Bank), Stéphane Hallegatte (World Bank), and Florent McIsaac (World Bank) develop a modeling framework to understand how political constraints change the least-cost approach to achieving climate objectives.
Sovereign Debt Sustainability, Carbon Budgets, and Climate Damages
Caterina Seghini (Banque de France) examines how mitigation costs and climate damages affect the debt limits of advanced economies
U.S. Banks’ Exposures to Climate Transition Risks
Climate change can pose risks to banks through the transition to a low-carbon economy. Hyeyoon Jung (New York Federal Reserve Bank) and her co-authors João A.C. Santos (New York Federal Reserve Bank), and Lee Seltzer (New York Federal Reserve Bank) in their new paper investigate the impact of climate transition policies on U.S. banks’ credit risk. Their results are surprising.