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The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. In particular, carbon taxes that will be implemented in the future induce resource owners to extract more rapidly which increases present...
Persistent link: https://www.econbiz.de/10010429908
leading to higher costs for the affected firms may also promote eco-innovation activities. For the first time, the new wave of … the Community Innovation Survey 2020 in Germany allows an analysis of the effects of climate change policy and costs …, demand for climate friendly goods and extreme weather conditions on (eco-)innovation. The results of probit and treatment …
Persistent link: https://www.econbiz.de/10013172102
Accounting for nearly 8% of global annual carbon dioxide (CO2) emissions, the cement industry is considered difficult to decarbonize. While a sizeable number of abatement levers for Portland cement production are technologically ready for deployment, many are still viewed as prohibitively...
Persistent link: https://www.econbiz.de/10014311753
This paper analyzes the impact of declining extraction costs of shale oil producers on the choice of the policy instrument of a climate coalition in the presence of a monopolistic oil supplier such as OPEC. Shale oil producers' extraction costs represent an upper bound for the oil price OPEC can...
Persistent link: https://www.econbiz.de/10011625605
We propose and implement a method to identify shocks to transition risk, addressing key challenges regarding its definition and measurement. Our shocks are instances where significant new information about the economic relevance of climate change increases the valuation of green firms over brown...
Persistent link: https://www.econbiz.de/10014227599
This paper proposes a forward-looking metric of transition risk that relates financial performance and incremental carbon costs at the firm level. To this end, we use a consistent dividend discount framework augmented with emission costs of firms and climate scenario projections from four...
Persistent link: https://www.econbiz.de/10015048429
Using survey data from German households, we find that individuals with lower climate concern tend to have higher inflation expectations up to five years ahead. This correlation is most pronounced among individuals with extremely high inflation expectations. Evaluating candidate explanations, we...
Persistent link: https://www.econbiz.de/10013171786
In the framework of the Paris Agreement implementation, financial transfers remain a major point of negotiation for addressing equity concerns raised by the ambitious climate objectives. In complement to the theoretical, experimental and numerical studies that have examined the role of transfers...
Persistent link: https://www.econbiz.de/10012431927
In a structural dynamic model that incorporates two broad production sectors with different carbon emissions, we find that climate policy uncertainty (CPU) shocks (i) lower the market value of the highly carbon-emitting sector relative to the low carbon-emitting sector, and (ii) reduce real...
Persistent link: https://www.econbiz.de/10014330990
We document majority support for policies entailing global redistribution and climate mitigation. Recent surveys on 40,680 respondents in 20 countries covering 72% of global carbon emissions show strong support for an effective and progressive way to combat climate change and poverty: a global...
Persistent link: https://www.econbiz.de/10014296930