Climate change is intensifying, generating more frequent and severe extreme weather events. Lukasz Krebel, Danae Kyriakopoulou and James Talbot examine the implications of severe weather events for the economy and monetary policy
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Climate policies could affect financial stability if they lead to large changes in asset returns. Matthias Kaldorf and Matthias Rottner study the financial stability and welfare effects of such ‘climate Minsky moments’
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The European Commission’s response to the Draghi Report is the Competitiveness Compass. Jeromin Zettelmeyer believes this would set up a conflict between industrial policy and the single market
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Heather Grabbe and Jeromin Zettelmeyer evaluate the capacity of the EU’s economic strategy to address structural problems and whether policy needs to change under Trump
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Europe faces a large climate investment gap. Irene Monasterolo, Antonia Pacelli, Marco Pagano and Carmine Russo propose filling this gap through the joint issuance of European climate bonds that would be funded by selling GHG emission allowances via the ETS extended to all sectors
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The EU has signalled its readiness to engage and negotiate with Donald Trump. Ursula von der Leyen warns of a race to the bottom and the need to avoid a trade conflict that would hurt both sides and the global economy
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Agriculture contributes significantly to greenhouse gas emissions. Mattia Ricci, Ignacio Pérez Domínguez, Stijn Van Houtven, Jordan Hristov and Toon Vandyck examine how to tax agriculture as a path to greening consumption in Europe
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The social cost of carbon has been a critical component in shaping climate policy. Christoph Hambel, Ton van den Bremer and Frederick Van Der Ploeg propose a new way to price carbon
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Carbon taxes incentivise substitution toward cleaner energy. Pierre Coster, Julian Di Giovanni and Isabelle Mejean discuss carbon leakage in the context of European policies
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The transition to a greener economy will entail reallocating workers from high-polluting to ‘green’ jobs. Emilia Soldani, Maxime Nguyen, Tomomi Tanaka and Orsetta Causa investigate the role of structural and policy factors in the transition
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