Article in Journal
Uncoordinated Climate Policies: Implications for Cross-Border Lending
Emanuela Benincasa, Gazi Kabas, Steven Ongena
CESifo, Munich, 2023
EconPol Forum 24 (1), 28-30
CESifo, Munich, 2023
EconPol Forum 24 (1), 28-30
- There are substantial differences across countries regarding climate policy stringency
- Banks react to a stricter climate policy at home by increasing their cross-border lending to countries with laxer climate policies
- The evidence is consistent with the adverse effect of transitional climate risks on firms, possibly reducing banks’ domestic loan portfolio performance
- Global coordination in climate policies is needed to prevent race-to-the-bottom behavior
Included in
EconPol Forum 01/2023: Climate Change: Greening the Economy by Green Finance?
CESifo, Munich, 2023