focalinterest.net

AI Summary of Scholarly Research

This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

Carbon pricing can create macro-financial stability risks

Written by

editor@focalinterest.com

in

Research area:engineering-energyrenewable-energy

What the study found

The study found that rapid decarbonization driven by carbon pricing can pose macro-financial stability risks. It also found that targeted fiscal and monetary policies can help mitigate those risks.

Why the authors say this matters

The authors conclude that macro-financial stability can be affected during a rapid energy transition. The study suggests that policy responses may be needed alongside carbon pricing to limit these risks.

What the researchers tested

The researchers used integrated assessment modeling and agent-based modeling frameworks. These are modeling approaches used to examine interactions between the economy, energy transition, and financial stability.

What worked and what didn't

According to the abstract, targeted fiscal and monetary policies helped mitigate the macro-financial stability risks associated with rapid decarbonization. The abstract does not describe which specific policy designs worked best or which measures were ineffective.

What to keep in mind

The available summary does not provide details on model settings, scenarios, or the size of the effects. It also does not describe limitations beyond the fact that the findings come from modeling frameworks.

Key points

  • Rapid decarbonization driven by carbon pricing can create macro-financial stability risks.
  • Targeted fiscal policy and monetary policy can help mitigate those risks.
  • The study used integrated assessment and agent-based modeling frameworks.
  • The abstract does not specify which policy tools were most effective.

Disclosure

Research title:
Carbon pricing can create macro-financial stability risks
Authors:
Luca E. Fierro, Severin Reissl, Francesco Lamperti, Emanuele Campiglio, Laurent Drouet, Johannes Emmerling, Elise Kremer, Massimo Tavoni
Institutions:
CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, CMCC Foundation – Euro-Mediterranean Center on Climate Change, Committee on Climate Change, International Institute for Applied Systems Analysis, Politecnico di Milano, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, RFF-CMCC European Institute on Economics and the Environment, Scuola Superiore Sant'Anna, Scuola Superiore Sant'Anna, Sustainability Institute, Universidade Nova de Lisboa, University of Bologna
Publication date:
2026-04-07
DOI:
10.1038/s43247-026-03209-4
OpenAlex record:
View
AI provenance: This post was generated by gpt-5.4-mini (OpenAI). The original authors did not write or review this post.

More posts