The Sustainable Finance Lab has won a grant for the third call of the International Network for Sustainable Financial Policy Insights, Research and Exchange (INSPIRE). INSPIRE is an academic partner of the supervisors and central banking Network for Greening the Financial System (NGFS). The research team (Dr. Moutaz Altaghlibi and Drs. Rens van Tilburg) will work on Energy transition intersectoral dependencies under different monetary and supervisory policy scenarios. The research aims to investigate the effectiveness and efficiency of central bank interventions in the transition towards a low carbon economy. A general equilibrium model is used that captures the feedback loops across sectors through energy prices channel, distinguishing between sectoral green and brown assets. We intend to track policy effects on sectoral cash flows, return on invested capital, along with their effects on price levels, inflation and financial stability under different transition scenarios. The results are expected to be delivered on June 30, 2021.

All funded projects for INSPIRE can be found via this link.