João F. Cocco (LBS, CEPR), Bernardo Mendes (LBS) and S. Lakshmi Naaraayanan (LBS, CEPR) examine the true drivers of green financing programs such as green mortgages. Are they real drivers of energy efficiency or marketing instruments?...
Jacopo Ponticelli (Nortwestern University), Qiping Xu (University of Illinois Urbana-Champaign) and Stefan Zeume (University of Illinois Urbana-Champaign, Gies College of Business) show that extreme temperatures between 1980s and 2010s jointly increased energy costs and decreased productivity of small manufacturing plants in the U.S. ...
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.
Honorable Mention from the 2024 E-Axes Forum Research CommitteeKeith Jin Deng Chan (HKUST) and Wilson Tsz Shing Wan (HKUST) demonstrate that a company’s net-zero commitment can increase or decrease the carbon risk premium associated with its equity, depending on the latter’s transition readiness.
Winner of the 2024 E-Axes Forum Research Prize Adelina Barbalau (Alberta School of Business) and Federica Zeni (World Bank) develop a theoretical framework for understanding how to structure debt contracts to curb greenwashing while maximizing environmental outcomes.
Olivier Wang (New York University) develops an ecologically-founded model that captures how biodiversity affects economic activity. This model structure allows the authors to characterize ecosystem fragility—how sensitive ecosystem services are to further biodiversity loss.
This Research Digest, curated by Christoph Meinerding (Bundesbank), examines recent studies on carbon pricing's impact on firms, highlighting its effectiveness in reducing emissions, stimulating green investments, and influencing financial performance across various implementation phases and policy designs.
Thomas Bourany (University of Chicago) proposes a novel approach to tackle global warming through an optimized climate club model. The research suggests implementing a carbon tax of $100 per ton of CO2 and moderate tariffs of 50% on non-members, potentially reducing emissions by 33% and increasing global welfare by 5%.
We call for an urgent revision of the New Common Quantified Goal of Climate Finance. We are on a current 2.8°C trajectory, and 2°C Goal of the Paris Agreement is not good enough. It is vital to small island nations, and the world, to deliver on the Paris Agreement goal of 1.5°C. Every 0.1°C counts.
Patrick Bolton (Imperial College London) and Alissa M. Kleinnijenhuis (Cornell University, Imperial College London) assess the importance of New Common Quantified Goal (NCQG) in order to meet the Paris Agreement's goals and appropriately update the Nationally Determined Contributions. Importantly, they show that climate finance at scale for developing countries is not just equitable,
but also in developed countries’ economic interest.
Richard Senner and Andrea Vismara (Complexity Science Hub) contribute to a better understanding of the transmission of physical risks across supply chains.
Adrien Bilal (Stanford University) and Diego Känzig (Northwestern University) estimate that the macroeconomic damages from climate change are six times larger than previously thought.
Deeksha Gupta (Johns Hopkins University) studies the optimal design of green disclosure reqirements to support firms’ transition to greener technologies.
Jitendra Aswani (UCL) investigates whether there is a risk premium for environmental externalities and if there is a premium for securities issued to mitigate these externalities.
Gong Cheng (BIS), Eric Jondeau (Universitè de Lausanne), Benoit Mojon (BIS), and Dimitri Vayanos (LSE) analyze whether a net zero strategy implemented by green investors would result in a drop in the stock prices of the brownest firms and/or an increase for greener firms upon the announcement and during the exclusion phase of a green index.
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.
Anh H. Le (Goethe University Frankfurt) highlights the need for heterogeneous responses to transition risk, such as macroprudential policies, carbon market permits, green quantitative easing, and green bonds
Olivier Darmouni (Columbia Business School) and Yuqi Zhang (Columbia Business School) examine who owns brown coal power plants, the single largest source of carbon emissions globally. They conduct a new study that shows while ownership by stock market investors is on the decline, private and especially state investors have grown significantly, slowing down the phase-out of fossil fuels.
Florian Heeb (MIT) explores the literature on whether sustainable investing and climate policies interact. He asks a provocative question: could sustainable investing do more harm than good by reducing the likelihood of implementing effective public policies?
Parinitha Sastry (Columbia Business School) discusses her new research with Emil Verner (MIT), and David Marques-Ibanez (ECB) on how efficient banks' voluntary net zero commitments are for reducing financed emissions, whether through divestment or engagement.
Yasmine van der Straten (University of Amsterdam) discusses an interesting finding of her research: investors reward carbon emission intensive companies that make an effort to become more green, as the risk premium is smaller for emission intensive firms that engage in green innovation.
Incomplete markets and uncorrected environmental externalities result in the under-provision of low-carbon technologies. In her paper “Bringing breakthrough technologies to market: solar power and feed-in tariffs” , Sugandha Srivastav (University of Oxford) examines whether the United Kingdom’s renewable energy feed-in-tariff (FiT), which is a risk-reduction and price instrument, helped bring utility-scale solar energy to market.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
