The 2021 UN Climate Change Conference (COP26) reinforces the need to discuss the rising macroeconomic challenges from the COVID-19 pandemic crisis together with the concerns of global warming.
The 6th Intergovernmental Panel on Climate Change (IPCC) Assessment Report shows that, in 2019, the CO2 concentration in the atmosphere reached its highest level and temperatures are increasing at a faster rate than in past decades. Climate disasters and transition risks might reduce growth, create poverty traps, inflation, and increase financial instability. Climate stress tests by the European Central Bank shows that climate risks will bring significant losses to GDP and a 30% larger likelihood of default in the financial sector.
Date: November 13, 2021
Time: 9:00am to 3:30pm EDT
This workshop discusses the current macroeconomic and climate challenges, suggesting new research and policy agenda in economics. The research agenda conducted by NSSR graduate students and alumni will be presented and the event will be closed with a presentation by Prof. Markus Brunnermeier (Princeton University) on his new book, The Resilient Society (Endeavor Literary Press, 2021). Can a resilient society bounce back from shocks, such as economic and financial crises, pandemics meltdown and climate disasters? Lacking resilience, can society reach tipping points from which they are unlikely to recover, possibly ending up in economic and social traps? These and other topics are covered in the book by Markus Brunnermeier discussed at 2pm.
This event is an NSSR Economics Research Workshop with the support of the Thyssen Foundation and SCEPA.
Session 1 - Research Agenda (1): 9 – 11:30am
• Welcome Remarks – Prof. Mark Setterfield and Prof. Willi Semmler (9am – 9:10am)
• Presentations: 15 min. presentation and 5 min. discussion for each presenter
Moderator: Jose Pedro Bastos Neves
1. Gabriel Padró Rosario (9:10 – 9:30am): The Economic Cost of a Hurricane: A case study of Puerto Rico and Hurricane Georges 1998 using Synthetic Control Method
2. Julia M. Puaschunder (9:30 – 9:50am): The Multiple Dimensions of Climate Justice - with a focus on climate justice across countries
3. Ettore Gallo (9:50 – 10:10am): Green Goodwin: reduction of CO2 emissions, climate damage and the persistence of business cycles.
4. Michael Flaherty (10:10 – 10:30am): Balancing Adaptation with Mitigation: incorporating shorter-term loss reduction with longer-term sustainability objectives
5. Tato Khundadze (10:30-10:50am): Regime switching in Consumption Behavior
6. Joao Paulo Braga (10:50 – 11:10am): Greener Financial Portfolios and Economic Policy
7. Andreas Lichtenberger (11:10 – 11:30am): Green Bonds for the Transition to a Low Carbon Economy
Session 2 - Research Agenda (2): 11:30 - 1:30pm
Moderator: Joao Paulo Braga
1. Damien Parker (11:30 – 11:50am): Did the QE Monetary Policy Contribute to Inequality in Wealth Distribution?
2. Oriol Codina (11:50 – 12:10pm): Assessing the Speed of the Green Transition with the Flaschel-Semmler model of Multi-Sector Growth
3. Jose Pedro Bastos Neves (12:10 – 12:30pm): Carbon Wealth Tax: a Proposal
4. Amit Roy (12:30 - 12:50pm): Green Monetary Policy to Combat Climate Change: Theory & Empirics
5. Behnaz Minooei Fard (12:50 – 1:10pm): Limit Pricing and Entry Game of renewable energy firms into the energy sector.
6. Hanin Khawaja (1:10 – 1:30pm): Crypto(currency?) as Legal Tender and the Digitalization of Currency System
Lunch Break (1:30 – 2pm)
Session 3 - Book presentation: Markus Brunnermeier (Princeton): Resilient Society (2pm – 3:30pm)
Moderator: Prof. Willi Semmler (NSSR)
• Opening remarks and Introduction – Prof. Will Milberg (Dean NSSR)
• Prof. Markus Brunnermeier – The Resilient Society
• Prof. Willi Semmler – Comments and closing remarks