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Cross-border financial flows and global warming in a two-area ecological SFC model

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  • Carnevali, Emilio
  • Deleidi, Matteo
  • Pariboni, Riccardo
  • Veronese Passarella, Marco

Abstract

•The search for safe financial assets can affect economic growth and financial stability.•The search for green financial assets can exacerbate climate change if capitals are free and exchange rates are floating.•Lacking a strong coordination, green government policies are likely to generate negative side effects for other areas.•Ecological efficiency gains are likely to be offset by the higher growth rate of the economy (rebound effect).•The effectiveness of green behaviours and policies depends on the impact of cross-border financial flows on exchange rates.

Suggested Citation

  • Carnevali, Emilio & Deleidi, Matteo & Pariboni, Riccardo & Veronese Passarella, Marco, 2021. "Cross-border financial flows and global warming in a two-area ecological SFC model," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:soceps:v:75:y:2021:i:c:s0038012119303003
    DOI: 10.1016/j.seps.2020.100819
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    Cited by:

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    3. Stefano Di Bucchianico & Federica Cappelli, 2021. "Exploring the theoretical link between profitability and luxury emissions," Working Papers PKWP2114, Post Keynesian Economics Society (PKES).

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