Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | A Financial Macro-Network Approach to Climate Policy Evaluation |
| Organization Unit | |
| Authors |
|
| Language |
|
| Series Name | SSRN |
| Number | 3073191 |
| Date | 2017 |
| Abstract Text | Existing approaches to assess the economic impact of climate policies tend to limit their analysis to estimating the direct effect of a policy on the specific institutional sector targeted by the policy itself (e.g. banks, firms), thus underestimating its overall effect. In order to fill this gap, we develop a methodology, based on financial networks, to analyse the transmission throughout the economy of positive or negative shocks induced by the introduction of climate policies. In particular, this methodology allows to identify the feedback loops between the financial sector and the real economy through direct and indirect chains of financial exposures across multiple financial instruments (i.e. loans, equity, bonds, and life insurance). We illustrate the methodology on empirical data of the Euro Area. We focus on policy-induced shocks that affect directly either the banking sector or the non-financial firms, and we analyse the most relevant feedback loops that can reinforce the effect of such shocks. This analysis helps to understand the conditions for virtuous or vicious cycles to arise in the finance-climate nexus and to improve the assessment of the economic impact of climate policies. |
| Related URLs |
|
| Export |
BibTeX
EP3 XML (ZORA)
|