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Emanuele Campiglio and colleagues win a Jubiläumsfonds grant of the Oesterreichische Nationalbank (OeNB)

Emanuele Cam­piglio, to­gether with Irene Monas­ter­olo and Stefan Schmelzer, has ob­tained a 117,000€ Ju­biläums­fonds grant from the Oes­ter­reichis­che Na­tion­al­bank (OeNB) for a pro­ject on ‘Smooth­ing the low-­car­bon trans­ition. A har­mon­ised policy re­sponse to cli­mate-re­lated fin­an­cial risks’ (ab­stract below). The pro­ject will be man­aged as part of the Re­search Area in Cli­mate Eco­nom­ics and Fin­ance and will start in the au­tumn of 2018.

De­scrip­tion of the pro­ject:
The threat of cli­matic change calls for a rapid trans­ition to a low-­car­bon so­ci­ety. However, the mac­roe­co­nomic and fin­an­cial im­plic­a­tions of such sys­tem-wide struc­tural shift are still un­clear and po­ten­tially harm­ful. Tack­ling the double chal­lenge of en­sur­ing the trans­ition while avoid­ing neg­at­ive so­cioeco­nomic im­plic­a­tions will re­quire the design and im­ple­ment­a­tion of a com­pre­hens­ive and co­ordin­ated set of policies. However, the assess­ment tools at the dis­posal of poli­cy-­makers are rarely able to link the mac­roe­co­nomic, fin­an­cial and en­vir­on­mental sys­tems in a co­her­ent man­ner. The aim of the pro­posed pro­ject is thus to build an in­teg­rated mod­el­ling frame­work cap­able of ex­plor­ing: i) the po­ten­tial im­plic­a­tions of the low-­car­bon trans­ition on growth, em­ploy­ment, dis­tri­bu­tion and fin­an­cial sta­bil­ity; ii) the most ap­pro­pri­ate set of policies to min­im­ise cli­mate-re­lated risks, while en­sur­ing a smooth and rapid trans­ition. More spe­cific­ally, we will develop a stock­-­flow con­sist­ent mac­roe­co­nomic model with het­ero­gen­eous sect­ors and nu­mer­ic­ally cal­ib­rate it to the Euro­zone re­gion. Our model ex­pli­citly in­cludes en­ergy as an in­put factor for the pro­duc­tion of con­sump­tion and cap­ital goods, as well as a co­her­ent and real­istic rep­res­ent­a­tion of the bank­ing and fin­an­cial sys­tems. The struc­ture of the pro­posed model will al­low for a com­pre­hens­ive ana­lysis of the re­quire­ments and im­plic­a­tions of fis­cal policies, mac­ro­pruden­tial reg­u­la­tions and mon­et­ary policies designed to sup­port the low-­car­bon trans­ition.

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