Macro-economics and finance
The macro-economic repercussion of environmental challenges and mitigation strategies are key for designing a sustainable transition. We use numerical models to quantify the impacts of climate change on the real economy as well as the financial sector. We develop both macroeconomic general equilibrium and agent-based models to assess the direct and higher-order costs of climate change. Particular emphasis is given to the representation of autonomous market-driven adaptation mechanisms, i.e. those systemic interactions across markets and agents able to propagating, amplifying or smoothing initial impacts. We examine the transition risks for the financial sector and evaluate macro-prudential policies to alleviate them.