Interesting paper suggesting that the rise of sustainable investing leads to a decline in the perceived cost of "green capital". Whether (and how) this will continue is an open and crucial question. Climate Capitalists SSRN papers.ssrn.com/sol3/papers.cf…

Very relevant paper. Can certainly explain a great deal of the recent dynamics of French yields (5y trading above that of Greece...)

Very insightful thread on the challenges faced by Europe and in particular Germany. Also highlights how Europe could seize the green transition opportunity to reignite growth

Interesting paper thinking about the macroeconomics of clean power. It argues that a move away from extraction-based energy (fossil fuel) towards renewables (w/ zero marginal costs) can increase long-term growth by removing the resource drag of investment in energy efficiency!

Very interesting review of the Draghi report by Olivier Blanchard and Angel Ubide : 'Essential issues raised, but not fully answered by the Draghi report' Many interesting points raised: - Main driver of US-EU economic divergence is demographics, not productivity. - Still,

Europe suffers from chronic private underinvestment. At the same time, European public R&D is insufficient and overwhelmingly done at the national level, which is clearly sub-optimal (see: Faust et al. (2024)). Is pan-European public R&D spending the solution?

Missed this thread earlier. This is a neat way from cephalopod to conceptualize momentum as a factor, what it captures, and why it’s valuable, beyond the typical intuition for why it should produce a positive risk premium. Thanks to the ghost of groditi’s future 👹 for highlighting. FWIW this

Very interesting Bloomberg article. Hedge funds cite geopolitical risks, tariffs wars, and supply-chain exposure to China as key factors hindering a more positive outlook for the green transition investment case. The "power infrastructure" segment is deemed as "one of the biggest

China’s big gamble is to gain market shares at all costs (even if means selling e.g. EV’s at a loss). Whether this will be a successful policy in the long run remains to be seen. One thing is sure: this will have major implications for the world economy and geopolitics

Some good evidence on how firms plan to increase their climate-related investments. The paper finds that it will generally come on top of other investments, and will largely be driven by large and energy-intensive companies. Planned investments, however, are insufficient to meet

it’s almost november and japan’s mount fuji doesn’t have a snowcap the latest date without snow since records began 130 yrs ago

Very insightful paper from IMF on the banks that finance coal activities. They find that coal financing is becoming increasingly concentrated, with loan maturities typically much shorter than the remaining lifetime of the coal assets, thereby exposing equity holders to a

Europe had an effective tool for climate action: the Emissions Trading System (ETS). Instead of expanding this market-based solution, we've built a byzantine regulatory framework that goes far beyond emissions reduction. THREAD on my post today on the "Compliance Doom Loop" 1/10

NEED SOME GOOD NEWS? The EU now generates more electricity from wind and solar than from fossil fuels. Graph from Nat Bullard graphic using Ember data.

Today in Silicon Continent. Why is US tech racing ahead of Europe? It's all about superstars. A few top firms drive most progress: - SpaceX = 80% of space cargo. - 95% of AI chips made by one firm. - 2 companies made all approved mRNA vaccines. THREAD 1/10

Check out the Bank Underground post with Brendan Berthold, Ambrogio Cesa-Bianchi and Alex Haberis summarizing our paper entitled "The Heterogenous Effects of Carbon Pricing: Macro and Micro Evidence" bankunderground.co.uk/2024/11/27/the…

Impressive YTD performance by Siemens Energy, outpacing even Nvidia, highlighting the financial opportunities that result from the green transition and the electrification of the grid. Also shows that the process won't happen linearly; SE was bailed out by the German gov. no

The #SJES Swiss Journal of Economics and Statistics offers an excellent platform for showcasing policy-relevant research. Latest example: the paper by Brendan Berthold, using text analysis to quantify macro climate-policy risk in 🇨🇭, has been selected for a general-audience summary by «Die Volkswirtschaft» 👇