IDEAS home Printed from https://ideas.repec.org/p/ven/wpaper/202119.html
   My bibliography  Save this paper

Beyond standard economic approaches: complex networks in climate finance

Author

Listed:
  • Francesca Larosa

    (Department of Economics, Ca' Foscari University of Venice Euro-Mediterranean Center on Climate Change)

  • Nadia Ameli

    (University College of London)

  • Jamie Rickman

    (University College of London)

  • Sumit Kothari

    (University College of London)

Abstract

The financial system is a key tool to enable the shift towards a climate-smart economy: by reallocating capital to low-carbon assets, it internalizes the climate externality. However, the financial sector operates as an ecosystem of evolving agents continuously shaping the outcomes they jointly generate. Hence, the consequences of global warming and the climate impacts are potentially amplified by the micro and meso dynamics of agents interacting with each other and with technologies and institutions in the space they operate. In this working paper, we present a concise but exhaustive review about complex networks models and methods applied to climate finance. We show where networks can overcome the limitations of standard economic models in both macroprudential regulation and capital allocation. We present the main challenges ahead and we discuss the importance of a renewed research-policy dialogue to advance the discipline.

Suggested Citation

  • Francesca Larosa & Nadia Ameli & Jamie Rickman & Sumit Kothari, 2021. "Beyond standard economic approaches: complex networks in climate finance," Working Papers 2021:19, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2021:19
    as

    Download full text from publisher

    File URL: https://www.unive.it/web/fileadmin/user_upload/dipartimenti/DEC/doc/Pubblicazioni_scientifiche/working_papers/2021/WP_DSE_larosa_ameli_rickman_kothari_19_21.pdf
    File Function: First version, anno
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Complex networks; climate finance; complexity economics; energy transition; climate change;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2021:19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sassano Sonia (email available below). General contact details of provider: https://edirc.repec.org/data/dsvenit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.