Quantitative Sustainable Economics and Finance 
Time: 11.00 am
Date: 22th of January 2025
Room 3001

Sara BIAGINI (LUISS University) “Climate risk mitigation via carbon markets: accounting for the lifespan of GHGs”

Abstract : We study the problem of optimal climate risk mitigation with short-term emission reduction targets and long-run temperature stabilization goals in the presence of firms generating greenhouse gases with different temporal persistency and warming potential. We investigate how the pervasive notion of carbon equivalence may undermine climate risk mitigation efforts when carbon markets can be used to trade short-lived gasses against long-lived ones. The findings demonstrate the vulnerability of certain emission metrics and carbon accounting standards to greenwashing and support the reporting of emissions in disaggregated form and native units of measure. Based on a joint work with E. Biffis and K. Salehzadeh Nobari.

Organizers:  Patricia Crifo, Emmanuel Gobet, Peter Tankov, Gauthier Vermandel, and Olivier David Zerbib

Sponsors:
CREST-CMAP