dc.contributor.author | COMERFORD, David | |
dc.contributor.author | SPIGANTI, Alessandro | |
dc.date.accessioned | 2020-06-17T14:19:42Z | |
dc.date.available | 2020-06-17T14:19:42Z | |
dc.date.issued | 2020 | |
dc.identifier.issn | 1830-7728 | |
dc.identifier.uri | https://hdl.handle.net/1814/67434 | |
dc.description.abstract | Credible implementation of climate change policy, consistent with the 2°C limit, requires a large proportion of current fossil fuel reserves to remain unused. This issue, named the Carbon Bubble, is usually presented as a required asset write-off, with implications for investors. For the first time, we discuss its implications for macroeconomic policy. We embed the Carbon Bubble in a macroeconomic model exhibiting a financial accelerator: if investors are leveraged, the Carbon Bubble may precipitate a fire-sale of assets across the economy, and generate a large and persistent fall in output and investment. We find a role for policy in mitigating the Carbon Bubble. | en |
dc.format.mimetype | application/pdf | en |
dc.language.iso | en | en |
dc.publisher | European University Institute | en |
dc.relation.ispartofseries | EUI MWP | en |
dc.relation.ispartofseries | 2020/04 | en |
dc.rights | info:eu-repo/semantics/openAccess | en |
dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | * |
dc.subject | Carbon Bubble | en |
dc.subject | Fire-sale | en |
dc.subject | Deleveraging | en |
dc.subject | Resource substitution | en |
dc.subject | 2°C target | en |
dc.subject | Q43 | en |
dc.subject | H23 | en |
dc.title | The carbon bubble : climate policy in a fire-sale model of deleveraging | en |
dc.type | Working Paper | en |
dc.rights.license | Attribution 4.0 International | * |