ALBERT

All Library Books, journals and Electronic Records Telegrafenberg

X
feed icon rss

Your email was sent successfully. Check your inbox.

An error occurred while sending the email. Please try again.

Proceed reservation?

Export
Filter
Collection
Publisher
Language
Years
  • 1
    facet.materialart.
    Unknown
    Asset Pricing and the Carbon Beta of Externalities (2021)
    CESifo GmbH
    In:  CESifo Working Paper
    Details
    Publication Date: 2022-03-21
    Description: Climate policy needs to set incentives for actors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology spillover and time-inconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in abatement. However, their effect on the carbon beta and risk premium of abatement can be decreasing (when innovation spillovers are not anticipated) or increasing (when climate policy is not credible). Efficiency can be restored by carbon pricing and financial incentives, implemented in our model by a regulator and by a long-term investment fund. The regulator commands carbon pricing and the fund provides subsidies to reduce technology costs or to boost investment returns. The investment subsidy creates a financial incentive that complements the carbon price. In this way the investment fund can support climate policy when the actions of the regulator fall short. These instruments must also consider the investment risk and the sequence of their implementation. The investment fund can then pave the way for carbon pricing in later periods by preventing a capital misallocation that would be too expensive to correct. Thus the investment fund improves the feasibility of ambitious carbon pricing.
    Language: English
    Type: info:eu-repo/semantics/report
    Format: application/pdf
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
    CITATION PIK
  • 2
    facet.materialart.
    Unknown
    Financial fragmentation and the monetary transmission mechanism in the euro area: a smooth transition VAR approach (2018)
    In:  Studies in Nonlinear Dynamics & Econometrics
    Details
    Publication Date: 2022-03-21
    Type: info:eu-repo/semantics/article
    Format: application/pdf
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
    CITATION PIK
  • 3
    facet.materialart.
    Unknown
    Green transition, investment horizon, and dynamic portfolio decisions (2024)
    In:  Annals of Operations Research
    Details
    Publication Date: 2024-03-26
    Description: This paper analyzes the implications of investors’ short-term oriented asset holding and portfolio decisions (or short-termism), and its consequences on green investments. We adopt a dynamic portfolio model, which contrary to conventional static mean-variance models, allows us to study optimal portfolios for different decision horizons. Our baseline model contains two assets, one asset with fluctuating returns and another asset with a constant risk-free return. The asset with fluctuating returns can arise from fossil-fuel based sectors or from clean energy related sectors. We consider different drivers of short-termism: the discount rate, the nature of discounting (exponential vs. hyperbolic), and the decision horizon of investors itself. We study first the implications of these determinants of short-termism on the portfolio wealth dynamics of the baseline model. We find that portfolio wealth declines faster with a higher discount rate, with hyperbolic discounting, and with shorter decision horizon. We extend our model to include a portfolio of two assets with fluctuating returns. For both model variants, we explore the cases where innovation efforts are spent on fossil fuel or clean energy sources. Detailing dynamic portfolio decisions in such a way may allow us for better pathways to empirical tests and may provide guidance to some online financial decision making.
    Language: English
    Type: info:eu-repo/semantics/article
    Format: application/pdf
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
    CITATION PIK
  • 4
    facet.materialart.
    Unknown
    Asset pricing and the carbon beta of externalities (2024)
    In:  Journal of Environmental Economics and Management
    Details
    Publication Date: 2024-03-26
    Description: Climate policy needs to set incentives for investors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. These investors decide on uncertain investments according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology spillovers and time-inconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in abatement. However, their effect on the carbon beta and the risk premium for abatement can be decreasing (when innovation spillovers are not anticipated) or increasing (when climate policy is not credible). We show that the distortions can be overcome by modified carbon pricing by a regulator, or by financial incentives, implemented in our model by a long-term investment fund. The fund pays a subsidy to reduce technology costs or offers financial contracts to boost investment returns to complement the carbon price. The investment fund can thus pave the way for carbon pricing in later periods by preventing a capital misallocation that would be too expensive to correct, thus improving the feasibility of ambitious carbon pricing.
    Language: English
    Type: info:eu-repo/semantics/article
    Format: application/pdf
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
    CITATION PIK
  • 5
    facet.materialart.
    Unknown
    Green transition and macroeconomic stabilization (2024)
    In:  Journal of Economic Behavior & Organization
    Details
    Publication Date: 2024-04-18
    Description: This paper looks into the crucial macroeconomic feedback mechanisms emerging from the interplay among the goods market, the labor market, the financial sector, and monetary policy, particularly in the context of transitioning towards a climate-neutral economy. The investment decisions of firms, pivotal in this interaction, can trigger feedback loops with potentially destabilizing effects, underscoring the critical role of investment within the complex interplay of market and sector dynamics in the macroeconomy. Governmental intervention is highlighted as a key factor in steering the green transition while preserving economic stability. A carbon tax on fossil fuel consumption is proposed as a primary tool for facilitating this green transition. Our investigation employs a disequilibrium model of monetary growth, a la Keynes-Metzler-Goodwin (KMG), incorporating a portfolio perspective across three asset markets - money, bonds, and stocks. This framework allows for an in-depth analysis of how a carbon tax influences real production, inflation, and inequality during the transition. Our findings indicate that imposing a carbon tax on production does not markedly disrupt economic stability, as long as the carbon pricing and its growth rate remain within low bounds.
    Language: English
    Type: info:eu-repo/semantics/article
    Format: application/pdf
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
    CITATION PIK
Close ⊗
This website uses cookies and the analysis tool Matomo. More information can be found here...