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The article reviews the literature on the relationship between climate change and central bank policies. Central banks conduct monetary policy and are responsible for macroprudential supervision. The article focuses on the consequences of transition and physical risks for financial stability and...
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production sectors. In particular, the model comprises some low-carbon emission firms that finance their investments and … production only through banking loans, and high-carbon emission firms that finance their investments either with bank loans or by … issuing equities. Moreover, government imposes intensity targets to reduce pollution, and high-carbon emission firms buy …
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We study the preferential treatment of green bonds in the Central Bank collateral framework as an environmental policy instrument. We propose a macroeconomic model with environmental and financial frictions, in which green and conventional entrepreneurs issue defaultable bonds to banks that use...
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This paper critically assesses the literature on the relationship between economic integration and the environment. In particular, we investigate how trade liberalisation and capital market integration affect environmental policy and thus environmental quality. Conversely, we also study how...
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