While climate change is widely considered as a major challenge for societies, another pressing global environmental problem, i.e. the loss of biodiversity, is often given less attention despite its strong negative consequences for ecosystems and thus for human life. In light of the strong...

Metal markets are an important but understudied aspect of the global energy transition. This paper demonstrates differential metal price responses to the Paris Agreement based on their role in the energy transition. We use a difference-in-differences design with daily price data from 2001 to...

This paper has explored heterogeneous individual valuations of an important amenity, climate mildness, using a traditional Rosen-Roback empirical framework. It does so by including interaction terms between the amenity and worker characteristics in an hedonic wage regression that also include a...

The Strategic Roadmap for Carbon Market and Climate Finance in the Forest Sector, tailored for each of the Congo Basin countries (Cameroon, Central African Republic, Democratic Republic of Congo, Equatorial Guinea, Gabon, and the Republic of Congo), provides a comprehensive, country-specific...

The Strategic Roadmap for Carbon Market and Climate Finance in the Forest Sector, tailored for each of the Congo Basin countries (Cameroon, Central African Republic, Democratic Republic of Congo, Equatorial Guinea, Gabon, and the Republic of Congo), provides a comprehensive, country-specific...

The Strategic Roadmap for Carbon Market and Climate Finance in the Forest Sector, tailored for each of the Congo Basin countries (Cameroon, Central African Republic, Democratic Republic of Congo, Equatorial Guinea, Gabon, and the Republic of Congo), provides a comprehensive, country-specific...

This study “Assessment and support for the preparation and development of roadmaps on climate finance and carbon markets for the forests of the Congo Basin” has been carried out under the umbrella of the World Bank’s Advisory Support and Analytics (ASA) initiative, 'Leveraging Natural...

The Paris Agreement is designed to increase climate ambition gradually through a process of ratcheting up. What is the plausible endpoint of this process? We develop a tractable integrated assessment model in which countries interact through a decentralized general equilibrium and negotiate...

Carbon pricing is widely recognized as a key tool for reducing greenhouse gas emissions. However, if implemented without compensatory measures, it can increase poverty and inequality. The aim of this paper is to examine the role of carbon pricing in generating fiscal space for expanding social...

This paper examines how income inequality affects environmental outcomes through the interplay of household consumption and political support for climate policy. We develop an agent-based model in which households differ by income, consumption patterns, and climate policy attitudes. Our results...

This work presents a modified version of the integrated economic-climate model RICECH₄. The aim of the work was to expand the basic RICE model by explicitly accounting for methane (CH₄) emissions along with traditional carbon dioxide (CO₂) emissions, as well as the subsequent analysis of...

Public acceptance has influenced the evolution of carbon capture and storage (CCS) in Europe. To study the mechanisms behind this, we use evolutionary game theory where the governmental policy towards CCS, such as subsidies to the industry, is dependent on public acceptance. Public acceptance...

Carbon leakage is a major concern in the design of unilateral climate policies aimed at reducing global emissions in a cost-effective manner. In order to assess the cost-effectiveness of anti-leakage measures, it is crucial to understand the fundamental mechanisms that contribute to leakage. We...

The study examines economic growth and climate change when system competition between countries causes drastic changes in their climate policies. The world is divided into two groups of countries: one that implements strict climate policies and another that refrains from doing so due to concerns...

We characterize optimal climate policy in an economy with heterogeneous households and non-homothetic preferences. We focus on constrained efficiency, where the planner is restricted from transferring resources across households. We derive three results. First, the constrained-optimal carbon tax...

We study how mandatory climate-related disclosure affects bank lending using the phased introduction of the EU Taxonomy Regulation. Exploiting the staggered development and implementation of the regulation, we distinguish banks’ responses to anticipated disclosure requirements from their...

As the combination of digital technology and traditional inclusive finance, digital inclusive finance has displayed the huge potential to promote green low-carbon energy transition. Although theoretically, digital inclusive finance can contribute to achieving this goal, its practical effects and...

A review is presented of the macroeconomics of climate change and policy. The review starts with a tractable workhorse model of the macroeconomics of climate and carbon pricing. It then discusses extensions to multiple countries. A discussion of the effects of macroeconomic and climate...

Retrofitting gas-fired power plants to accommodate low-carbon fuel blends offers a promising pathway to achieving deep decarbonization while leveraging the existing infrastructure and maintaining electricity supply reliability. This study presents a comprehensive techno-economic assessment of...

I study a formal mechanism that can sustain Pareto optimality in a new and very broad class of dilemma games. In the absence of a central authority that could enforce multilateral agreements, the mechanism is based on binding unilateral commitments, which condition a playerís (possibly...

Green finance is the basis for the development of sustain-able financing of environmental projects with the aim of respectingenvironmental and social aspects in making investment decisions.The development of green finance enables a green transition towardseconomic growth that will be sustainable...

The traditional image of Latin America as a troubled region seems to continue even after the Covid-19 crisis, this time in the wake of the war in Ukraine and the sanctions imposed by the West. Inflationary pressures, budget deficits and the danger that broad sections of the population will slip...

Climate policy in the European Union (EU) and Germany changed significantly with the adoption of net-zero emissions targets. A key new development is the growing importance of carbon management. The umbrella term includes not only the capture and storage of CO2 (carbon capture and storage, CCS),...

While climate change is widely considered as a major challenge for societies, another pressing global environmental problem, i.e. the loss of biodiversity, is often given less attention despite its strong negative consequences for ecosystems and thus for human life. In light of the strong...

This paper investigates how firms navigate the dual challenges of digitalisation and climate change. Our comprehensive approach considers climate change strategies, distinguishing adaptation-only, mitigation-only and 'dual' adaptation and mitigation strategies. Drawing on theoretical insights...

A central challenge in the global transition to cleaner energy is how governments can design policies that deliver large social benefits while facing trade-offs in energy security, fiscal costs, and household adoption frictions. We study this question in urban Nepal, where cooking is dominated...

Recognizing the global potential of the seaweed sector, the World Bank published the "Global Seaweed New and Emerging Markets Report 2023". Building on this foundation, this market study aims to provide valuable insights into Tanzania's seaweed sector and outline pathways for the country to...

This study examines volatility spillovers among climate-policy-relevant sectors in the Chinese stock market across both time and frequency domains. It further explores the impact of climate policy uncertainty on the risk spillover effect in the Chinese stock market and its underlying mechanisms....

Transport is the second-largest energy using sector in Vietnam and is projected to have the highest energy and emissions growth in future years. This paper explores options for decarbonising Vietnam's transport sector using a mixed-methods approach, including qualitative scenario design and...

Despite widespread concern about climate change, voluntary mitigation efforts often fail to maximize impact. In two online experiments (n = 1, 500), we elicit willingness to mitigate (WTM) by allowing subjects to delete actual CO2 allowances and examine how they allocate the WTM between their...

This study addresses the pressing challenge of transitioning to a low-carbon economy in BRICS nations by investigating the role of green finance policies in enhancing energy efficiency and driving sustainable economic growth. The primary objective is to evaluate the effectiveness of green credit...

This study investigates the nonlinear and regime-dependent relationship between climate policy uncertainty (CPU) and sovereign credit default swap (CDS) spreads across a panel of developed and emerging economies from February 2010 to March 2025. Utilizing the Quantile-on-Quantile Regression...

This paper examines the macroeconomic and distributional effects of the European Union's transition to Net Zero emissions through a gradually increasing carbon tax. I develop a New Keynesian Environmental DSGE model with two household types and distinct energy and non-energy sectors. Five...