Fiscal restraint looks inevitable in the Eurozone following the pandemic, especially if the fiscal rules are reinstated. How to match this with the need to finance the climate transition? Two possible routes are explored. One is the adoption of a ‘green golden rule’, with the structural...

Die deutsche Wirtschaft befindet sich in einem konjunkturellen Abschwung. Zugleich werden strukturelle Herausforderungen durch die anstehende Dekarbonisierung deutlich, die auf nationaler und auch auf EU-Ebene enorme Anstrengungen erfordern. Eine wohlstandssichernde Klimawende bedarf massiver...

Greenhouse gas (GHG) emissions create a cost liability for firms exposed to the implementation of carbon pricing. We propose a framework for public equities that links Scope 1 and Scope 2 emissions with changes in firm valuation. This framework considers both 1) larger operating costs that lead...