Isabel Schnabel: From laggard to leader? Closing the euro area’s technology gap
This paper, by means of a DSGE model including heterogeneous firms and banks, financial frictions and prudential regulation, first shows the need of climate-related capital requirements in the existing prudential framework.
- This paper, by means of a DSGE model including heterogeneous firms and banks, financial frictions and prudential regulation, first shows the need of climate-related capital requirements in the existing prudential framework.
- We further show that relying on microprudential regulation alone would not be enough to account for the systemic dimension of transition risk.