A5080543399- Climate Change Policy and Economics
- Market Dynamics and Volatility
- Fiscal Policy and Economic Growth
- Sustainable Finance and Green Bonds
- Energy, Environment, Economic Growth
- Energy, Environment, and Transportation Policies
- Economic Theory and Policy
- Economic theories and models
- Global Energy and Sustainability Research
- Banking stability, regulation, efficiency
- Regional Economics and Spatial Analysis
- Financial Markets and Investment Strategies
- Sustainable Development and Environmental Policy
- Economic Growth and Productivity
- Climate Change, Adaptation, Migration
- Environmental Impact and Sustainability
- Climate Change and Health Impacts
- State Capitalism and Financial Governance
- COVID-19 impact on air quality
- Electric Power System Optimization
- Regional resilience and development
- Capital Investment and Risk Analysis
- Natural Resources and Economic Development
- Climate change impacts on agriculture
- demographic modeling and climate adaptation
University of Bologna
2013-2024
RFF-CMCC European Institute on Economics and the Environment
2013-2024
London School of Economics and Political Science
2013-2024
CMCC Foundation - Euro-Mediterranean Center on Climate Change
2021-2024
Zambon (Italy)
2021
Vienna University of Economics and Business
2017-2020
University of Pavia
2009-2013
Abstract The transition to a low‐carbon economy will entail large‐scale structural change. Some industries have expand their relative economic weight, while other industries, especially those directly linked fossil fuel production and consumption, decline. Such systemic shift may major repercussions on the stability of financial systems, via abrupt asset revaluations, defaults debt, creation bubbles in rising industries. Studies previous industrial transitions shed light risks originating...
Abstract The financial risks and potential systemic impacts induced by climate change the transition to a low‐carbon economy have become central issue for both investors their regulators. In this article, we develop critical review of empirical theoretical literature concerning impact climate‐related on price assets. We first present links between asset pricing theory how risk drivers transmit costs firms lead changes. then discuss studies looking at past events, which show that physical...
Climate change impacts, adaptation and vulnerability studies tend to confine their attention impacts responses within the same geographical region. However, this approach ignores cross-border climate that occur remotely from location of initial impact may severely disrupt societies livelihoods. We propose a conceptual framework accompanying nomenclature for describing analysing such impacts. The distinguishes an is caused by trigger specific Downstream consequences propagate through...
A timely low-carbon transition will require a significant decline in fossil fuel production and consumption. This turn exposes the rest of economic sectors to risk reduced usability physical capital stocks via international network linkages. We propose apply simple measure assess extent which shocks might trigger underutilisation across countries productive ('stranding multipliers'). Our results highlight relevance supply-side risks. First, among all activities, global sector exhibits...
COVID-19 has revealed how challenging it is to manage global, systemic and compounding crises. Like COVID-19, climate change impacts, maladaptive responses them, have potential disrupt societies at multiple scales via networks of trade, finance, mobility communication, impact hardest on the most vulnerable. However, these complex systems can also facilitate resilience if managed effectively. This review aims distil lessons related transboundary management risks from experience, inform policy...
A disorderly transition to a low-carbon economy may pose significant costs for both financial and nonfinancial firms through the stranding of physical assets, firms' defaults, volatility in asset prices. The spread these disruptions production networks exacerbate costs. Green monetary policies help mitigate cost transitioning future, but coordination among public institutions (governments, central banks, supervisors) is needed. We discuss qualitative, empirical, modeling, policy,...
We develop a dynamic model where heterogeneous firms take investment decisions depending on their beliefs future carbon prices. A policy-maker announces forward-looking price schedule but can decide to default its plans if perceived transition risks are high. show that weak policy commitment, especially when combined with ambitious mitigation announcements, trap the economy into vicious circle of credibility loss, carbon-intensive investments and increasing risk perceptions, ultimately...
Mounting evidence that human activities are driving Earth’s climate toward dangerous tipping points has raised the question of whether these may be averted by quickly reaching in societies. Prior work on social dynamics focused mainly defining its key features, identifying and characterising important elements, operationalizing interventions for triggering individual elements. However, success climate-stabilizing will depend their timing coordination across multiple elements...
Transitioning to a low-carbon economy will require significant investment transform energy systems, alter the built environment and adapt infrastructure. A strategy finance this is needed if limit of 2°C increase in global mean temperatures be respected. Also, high-income countries have pledged pay "agreed full incremental costs" climate-change mitigation by developing countries, which are not necessarily same as costs. Building on simulations using Integrated Assessment Models historical...
We develop a dynamic model where heterogeneous firms take investment decisions depending on their beliefs future carbon prices. A policy-maker announces forward-looking price schedule but can decide to default its plans if perceived transition risks are high. show that weak policy commitment, especially when combined with ambitious mitigation announcements, trap the economy into vicious circle of credibility loss, carbon-intensive investments and increasing risk perceptions, ultimately...
The optimal transition to a low-carbon economy must account for adjustment costs in switching from dirty clean capital, technological progress, and economic climatic shocks. We study the using dynamic stochastic general equilibrium model with emissions abatement calibrated on large energy modelling database, solved recursive methods. show how capital inertia puts upward pressure temperatures short run, but that nonetheless it is actively disinvest – 'strand' significant share of stock....
As the impacts of climate change begin to take hold, increased attention is being paid consequences that might occur remotely from location initial climatic impact, where and responses are transmitted across one or more borders. an economy highly connected other regions countries world, European Union (EU) potentially exposed such cross-border impacts. Here, we undertake a macro-scale, risk-focused literature data review explore potential impact transmission pathways between EU world...
This study employs a number of Integrated Assessment Models to determine what the optimal financial transfers between high-income and developing economies would be if climate mitigation effort, measured as costs share gross domestic product, were divided equally across regions through global carbon market. We find these larger than both current planned international finance flows. Four out six models imply that North–South annual transfer around US$400 billion is required by 2050, while...
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Individuals have heterogeneous beliefs regarding the future speed and shape of low-carbon transition. In this paper, we study to what extent opinion diversity matters for aggregate capital investment decisions. We develop a model where firms formulate expectations around dominant narrative, or 'market norm', with their dispersion increasing over finite planning horizon. Our analytical numerical results suggest that belief heterogeneity can significantly affect share investments, strength its...