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The impact of climate change on activity and prices – insights from a survey of leading firms

Author

Listed:
  • Kuik, Friderike
  • Morris, Richard
  • Sun, Yiqiao

Abstract

This box summarises the findings of a survey of leading firms on the impact of climate change and related measures to green the economy on business, and thus on activity and prices. The survey responses indicate that during the transition to a net-zero economy large companies anticipate significantly higher investment, input costs and price pressures, as well as changes to production and market structures. However, only a small share of respondents expect a significant impact on investment, input cost and prices after the transition. As regards the challenges involved, firms emphasise issues related to the availability of new clean technologies and inputs, followed by concerns about costs and regulation. Firms expect physical risks to have an impact in particular on the agricultural, construction and transport sectors, and on firms in the manufacturing sector with vulnerable supply chains. JEL Classification: C83, M21, E3, Q5

Suggested Citation

  • Kuik, Friderike & Morris, Richard & Sun, Yiqiao, 2022. "The impact of climate change on activity and prices – insights from a survey of leading firms," Economic Bulletin Boxes, European Central Bank, vol. 4.
    • Handle: RePEc:ecb:ecbbox:2022:0004:4
    Note: 646140
    as

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    File URL: https://www.ecb.europa.eu//press/economic-bulletin/focus/2022/html/ecb.ebbox202204_04~1d4c34022a.en.html
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    Citations

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    Cited by:

    1. Accetturo, Antonio & Barboni, Giorgia & Cascarano, Michele & Garcia-Appendini, Emilia & Tomasi, Marco, 2022. "Credit supply and green Investments," CAGE Online Working Paper Series 615, Competitive Advantage in the Global Economy (CAGE).
    2. Ciccarelli, Matteo & Kuik, Friderike & Martínez Hernández, Catalina, 2023. "The asymmetric effects of weather shocks on euro area inflation," Working Paper Series 2798, European Central Bank.
    3. Hideki Nishigaki, 2023. "The impact of rising EU Allowance prices on core inflation in the Eurozone," Economic Affairs, Wiley Blackwell, vol. 43(2), pages 245-264, June.

    More about this item

    Keywords

    Activity; Business; Climate change; Prices; Survey;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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