Abstract
The role of finance in the low-carbon transition, as well as the
deep uncertainty and endogeneity of climate finance risk, are
currently neglected by climate economic models. This leads
to a false sense of control in terms of risks and opportunities
associated with the low-carbon transition. Further, it prevents
people from understanding under which conditions climate
policies and finance could be a driver or a barrier. Recent
research has started to shed light on how climate economic
and financial risk modeling could embrace this complexity.
deep uncertainty and endogeneity of climate finance risk, are
currently neglected by climate economic models. This leads
to a false sense of control in terms of risks and opportunities
associated with the low-carbon transition. Further, it prevents
people from understanding under which conditions climate
policies and finance could be a driver or a barrier. Recent
research has started to shed light on how climate economic
and financial risk modeling could embrace this complexity.
Originalsprache | Englisch |
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Seiten (von - bis) | 25 - 33 |
Fachzeitschrift | CESifo Forum |
Jahrgang | 4 |
Publikationsstatus | Veröffentlicht - 2020 |