Macro-Financial Transition Risks in the Fight Against Global Warming
A survey of the academic and policy literature studying the macroeconomic and financial risks of a low-carbon transition.
The macro-financial transition risks that result from disorderly transitions to a carbon-free or low-carbon economy may entail significant costs due to the risk of stranded assets, defaults, collapse in stock market value, both for financial firms and non-financial firms. The effects of networks, contagion, and higher-round effects of stranding may exacerbate the problem. But green monetary and prudential policy and governance reforms may mitigate the problem. The qualitative, empirical, modelling, policy and institutional research on this topic is surveyed and various avenues for future research are identified.
University of Bologna; RFF-CMCC European Institute on Economics and the Environment
Frederick van der Ploeg
University of Oxford; University of Amsterdam
Common Resources — Mar 21, 2023
The Trade-Off between Costs and Emissions for the Hydrogen Tax Credit
Deploying hydrogen technologies quickly can speed up decarbonization and reduce associated costs, but also could increase emissions in the short run. This trade-off depends on how the US Department of the Treasury will implement the hydrogen tax credit.
On the Issues — Feb 24, 2023
On the Issues: Inflation Reduction Act Insights, Housing Markets, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: Inflation Reduction Act insights, housing markets, and more
Resources Radio — Feb 21, 2023
How Can Disasters Damage Local Budgets?, with Yanjun (Penny) Liao
Yanjun (Penny) Liao discusses how natural disasters affect local tax revenues and the ability of local governments to provide community services.