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Supplement to “OeNB climate risk stress test – modeling a carbon price shock for the Austrian banking sector”

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This supplement contains the formal write-up of the sectoral carbon price model as described in detail, albeit in natural language in section 3.1 of the paper “OeNB climate risk stress test – modeling a carbon price shock for the Austrian banking sector” in the OeNB’s Financial Stability Report 42. The sectoral carbon price model is implemented as a multiregional input-output analysis for 21 NACE sectors in the 27 countries of the European Union. We start with a short introduction to input-analysis and carbon prices, section 2 is then structured along the five calculation steps of our input-output model: 1) carbon price shocks, 2) price model with incomplete cost pass-through, 3) final demand model, 4) quantity model and 5) second-round effects.

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  • Csilla Königswieser & Benjamin Neudorfer & Martin Schneider, 2021. "Supplement to “OeNB climate risk stress test – modeling a carbon price shock for the Austrian banking sector”," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 42.
    • Handle: RePEc:onb:oenbfs:y:2021:i:42:b:2
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    File URL: https://www.oenb.at/dam/jcr:e3202259-f45e-4b25-9add-a01ff8f7c24e/Supplement_OeNB_climate_risk_stress_test.pdf
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    1. Corbett Grainger & Charles Kolstad, 2010. "Who Pays a Price on Carbon?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 359-376, July.
    2. Fernando MARTINS & Daniel A. DIAS & J.M.C. SANTOS SILVA & Carlos ROBALO MARQUES, 2010. "Why are some prices stickier than others? Firm-data evidence on price adjustment lags," EcoMod2010 259600114, EcoMod.
    3. Kevin Perese, 2010. "Input-Output Model Analysis: Pricing Carbon Dioxide Emissions: Working Paper 2010-04," Working Papers 21538, Congressional Budget Office.
    4. Martin Guth & Christian Lipp & Claus Puhr & Martin Schneider, 2020. "Modeling the COVID-19 effects on the Austrian economy and banking system," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 40, pages 63-86.
    5. Markus Leibrecht & Martin Schneider, 2006. "AQM-06: The Macro economic Model of the OeNB," Working Papers 132, Oesterreichische Nationalbank (Austrian Central Bank).
    6. Nicolas Gonne, 2016. "Assessing the Impact of Carbon Taxation on sectoral Competitiveness: the Case of Belgium," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 27-40.
    7. repec:onb:oenbwp:y::i:132:b:1 is not listed on IDEAS
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    1. Ghosh, Saibal, 2023. "Does climate legislation matter for bank lending? Evidence from MENA countries," Ecological Economics, Elsevier, vol. 212(C).

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