Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper assesses the financial risks arising from transition toward a low-emission economy. The environmental DSGE model shows tightening environmental regulation impairs firms’ balance sheets, and consequently threatens financial stability in the short term. The empirical analysis indicates that following the implmentation of Clean Air Action Plan, the default rates of high-polluting firms in a Chinese province rose by around 80 percent. Joint equity commercial banks with higher level of independence were able to appropriately price in their exposure to transition risks, while the Big Five commercial banks failed to factor in such risks.

Macroeconomics --- Economics: General --- Industries: Financial Services --- Environmental Policy --- Banks and Banking --- Environmental Economics --- Labor --- Business Fluctuations --- Cycles --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Energy and the Macroeconomy --- Taxation and Subsidies: Externalities --- Redistributive Effects --- Environmental Taxes and Subsidies --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Environmental Economics: Government Policy --- Environmental Economics: General --- Labor Demand --- General Financial Markets: Government Policy and Regulation --- Economic & financial crises & disasters --- Economics of specific sectors --- Finance --- Environmental policy & protocols --- Banking --- Environmental economics --- Labour --- income economics --- Loans --- Financial institutions --- Environmental policy --- Environment --- Commercial banks --- Self-employment --- Currency crises --- Informal sector --- Economics --- Banks and banking --- Environmental sciences --- Self-employed --- China, People's Republic of

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper assesses the financial risks arising from transition toward a low-emission economy. The environmental DSGE model shows tightening environmental regulation impairs firms’ balance sheets, and consequently threatens financial stability in the short term. The empirical analysis indicates that following the implmentation of Clean Air Action Plan, the default rates of high-polluting firms in a Chinese province rose by around 80 percent. Joint equity commercial banks with higher level of independence were able to appropriately price in their exposure to transition risks, while the Big Five commercial banks failed to factor in such risks.

China, People's Republic of --- Macroeconomics --- Economics: General --- Industries: Financial Services --- Environmental Policy --- Banks and Banking --- Environmental Economics --- Labor --- Business Fluctuations --- Cycles --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Energy and the Macroeconomy --- Taxation and Subsidies: Externalities --- Redistributive Effects --- Environmental Taxes and Subsidies --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Environmental Economics: Government Policy --- Environmental Economics: General --- Labor Demand --- General Financial Markets: Government Policy and Regulation --- Economic & financial crises & disasters --- Economics of specific sectors --- Finance --- Environmental policy & protocols --- Banking --- Environmental economics --- Labour --- income economics --- Loans --- Financial institutions --- Environmental policy --- Environment --- Commercial banks --- Self-employment --- Currency crises --- Informal sector --- Economics --- Banks and banking --- Environmental sciences --- Self-employed

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper provides estimates of output multipliers for spending in clean energy and biodiversity conservation, as well as for spending on non-ecofriendly energy and land use activities. Using a new international dataset, we find that every dollar spent on key carbon-neutral or carbon-sink activities can generate more than a dollar’s worth of economic activity. Although not all green and non-ecofriendly expenditures in the dataset are strictly comparable due to data limitations, estimated multipliers associated with spending on renewable and fossil fuel energy investment are comparable, and the former (1.1-1.5) are larger than the latter (0.5-0.6) with over 90 percent probability. These findings survive several robustness checks and lend support to bottom-up analyses arguing that stabilizing climate and reversing biodiversity loss are not at odds with continuing economic advances.

Macroeconomics --- Economics: General --- International Economics --- Energy --- Natural Resources --- Environmental Conservation and Protection --- Bayesian Analysis: General --- National Government Expenditures and Related Policies: General --- Environment and Growth --- Agricultural and Natural Resource Economics --- Environmental and Ecological Economics: General --- Sustainable Development --- Renewable Resources and Conservation: General --- Energy and the Macroeconomy --- Environmental Economics: General --- Alternative Energy Sources --- Nonrenewable Resources and Conservation: General --- Ecological Economics: Ecosystem Services --- Biodiversity Conservation --- Bioeconomics --- Industrial Ecology --- Climate --- Natural Disasters and Their Management --- Global Warming --- Economic & financial crises & disasters --- Economics of specific sectors --- Environmental management --- Conservation of the environment --- Climate change --- Financial crises --- Economic sectors --- Environment --- Renewable energy --- Renewable resources --- Non-renewable resources --- Environmental protection --- Greenhouse gas emissions --- Currency crises --- Informal sector --- Economics --- Renewable energy sources --- Natural resources --- Greenhouse gases --- Energy conservation --- United States --- Business logistics --- Clean energy. --- Green movement. --- Expenditures, Public. --- Macroeconomics. --- Economics: General. --- International Economics. --- Energy. --- Natural Resources. --- Environmental Conservation and Protection. --- Bayesian Analysis: General. --- National Government Expenditures and Related Policies: General. --- Environment and Growth. --- Agricultural and Natural Resource Economics. --- Environmental and Ecological Economics: General. --- Sustainable Development. --- Renewable Resources and Conservation: General. --- Energy and the Macroeconomy. --- Environmental Economics: General. --- Alternative Energy Sources. --- Nonrenewable Resources and Conservation: General. --- Ecological Economics: Ecosystem Services. --- Biodiversity Conservation. --- Bioeconomics. --- Industrial Ecology. --- Climate. --- Natural Disasters and Their Management. --- Global Warming. --- Economic & financial crises & disasters. --- Economics of specific sectors. --- Environmental management. --- Conservation of the environment. --- Climate change. --- Financial crises. --- Economic sectors. --- Environment. --- Renewable energy. --- Renewable resources. --- Non-renewable resources. --- Environmental protection. --- Greenhouse gas emissions. --- Currency crises. --- Informal sector. --- Economics. --- Renewable energy sources. --- Greenhouse gases. --- Energy conservation. --- Environmental aspects. --- United States.