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Macrofinancial risks of the transition to a low-carbon economy

Campiglio, Emanuele and van der Ploeg, Frederick (2022) Macrofinancial risks of the transition to a low-carbon economy. Review of Environmental Economics and Policy, 16 (2). 173 - 195. ISSN 1750-6816

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Identification Number: 10.1086/721016


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, and volatility in asset prices. The spread of these disruptions through production and financial networks may exacerbate transition costs. Green financial and monetary policies may help to mitigate the cost of transitioning to a low-carbon future, but coordination among public institutions (governments, central banks, and financial supervisors) is needed. We discuss qualitative, empirical, modeling, policy, and institutional research on this topic and identify priorities for future research.

Item Type: Article
Official URL:
Additional Information: © 2022 Association of Environmental and Resource Economists. All rights reserved.
Divisions: Grantham Research Institute
Subjects: H Social Sciences > HB Economic Theory
G Geography. Anthropology. Recreation > GE Environmental Sciences
JEL classification: G - Financial Economics > G0 - General > G00 - General
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q50 - General
Date Deposited: 10 Aug 2022 16:06
Last Modified: 26 Sep 2022 08:45

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