Chapter 2: Modelling transition-related shocks in the green economy

Limiting global temperature increases to 2°C above pre-industrial levels will necessitate a transition away from fossil fuels and towards low-carbon forms of energy production. While an energy technology transition is necessary to avoid the catastrophic effects of climate change, the transition and...

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Главный автор: Jackson, Andrew
Формат: Online
Язык:английский
Опубликовано: Edward Elgar Publishing 2024
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Online-ссылка:https://directory.doabooks.org/handle/20.500.12854/133948
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author Jackson, Andrew
author_browse Jackson, Andrew
author_facet Jackson, Andrew
author_sort Jackson, Andrew
collection Directory of Open Access Books
description Limiting global temperature increases to 2°C above pre-industrial levels will necessitate a transition away from fossil fuels and towards low-carbon forms of energy production. While an energy technology transition is necessary to avoid the catastrophic effects of climate change, the transition and its drivers may also generate a number of transition risks, including asset stranding. This chapter presents a stock-flow consistent, input–output model for the study of the different shocks associated with different transitions to a low-carbon economy. These shocks include the introduction of a carbon tax, a change in bank-financing conditions, a change in the energy sector’s production processes and changes in social norms. The results of these simulations suggest that shocks that affect the real side of the economy are likely to lead to larger impacts on demand and generate larger transition risks than those that primarily affect firms’ borrowing costs.
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spelling doab-20.500.12854ir-1339482024-02-05T11:12:58Z Chapter 2: Modelling transition-related shocks in the green economy Jackson, Andrew Energy transition; Transition risk; Stranded assets; Climate change; Stock-flow consistent model; Input–output model KCB Limiting global temperature increases to 2°C above pre-industrial levels will necessitate a transition away from fossil fuels and towards low-carbon forms of energy production. While an energy technology transition is necessary to avoid the catastrophic effects of climate change, the transition and its drivers may also generate a number of transition risks, including asset stranding. This chapter presents a stock-flow consistent, input–output model for the study of the different shocks associated with different transitions to a low-carbon economy. These shocks include the introduction of a carbon tax, a change in bank-financing conditions, a change in the energy sector’s production processes and changes in social norms. The results of these simulations suggest that shocks that affect the real side of the economy are likely to lead to larger impacts on demand and generate larger transition risks than those that primarily affect firms’ borrowing costs. Published 2024-02-05T11:12:54Z 2024-02-05T11:12:54Z 2023-01-12 chapter 9781035307517 https://directory.doabooks.org/handle/20.500.12854/133948 eng image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://www.e-elgar.com/shop/gbp/post-keynesian-economics-for-the-future-9781035307500.html https://www.elgaronline.com/edcollchap-oa/book/9781035307517/book-part-9781035307517-9.xml Edward Elgar Publishing Edward Elgar Publishing 10.4337/9781035307517.00009 10.4337/9781035307517.00009 01ceac28-75b4-492a-8eec-f9b98bc6b28c https://creativecommons.org/licenses/by-nc-nd/4.0/ 9781035307517 Edward Elgar Publishing Cheltenham, UK open access
spellingShingle Energy transition; Transition risk; Stranded assets; Climate change; Stock-flow consistent model; Input–output model
KCB
Jackson, Andrew
Chapter 2: Modelling transition-related shocks in the green economy
title Chapter 2: Modelling transition-related shocks in the green economy
title_full Chapter 2: Modelling transition-related shocks in the green economy
title_fullStr Chapter 2: Modelling transition-related shocks in the green economy
title_full_unstemmed Chapter 2: Modelling transition-related shocks in the green economy
title_short Chapter 2: Modelling transition-related shocks in the green economy
title_sort chapter 2 modelling transition related shocks in the green economy
topic Energy transition; Transition risk; Stranded assets; Climate change; Stock-flow consistent model; Input–output model
KCB
topic_facet Energy transition; Transition risk; Stranded assets; Climate change; Stock-flow consistent model; Input–output model
KCB
url https://directory.doabooks.org/handle/20.500.12854/133948
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