We investigate the limitations of cap-and-trade systems as a tool for driving investments in low carbon industrial technologies. Investments may be delayed, and suboptimal technology choice may result from myopic behaviour, financial constraints, and policy risk. We develop a partial equilibrium model that explicitly incorporates such imperfect behaviour in cap-and-trade systems. We evaluate...
The literature struggles to explain the success of green bonds: despite financial performances similar to traditional bonds, their popularity continues to grow. Furthermore, their impact on the ecological transition remains uncertain. This project aims to shed light on this paradox by examining the social construction of green bonds and their potential to transform the financial system. We...
Extreme weather events are becoming increasingly frequent due to climate change, causing extensive damage worldwide. The nature and frequency of these events vary regionally; in Belgium, river flooding is among the most significant causes of weather-related damage. To reduce this risk, governments are investing in nature-based solutions (NBS), by introducing flood plains and enhancing...
The Environmental Kuznets Curve (EKC) plays a key role in shaping policies that connect economic growth with environmental sustainability. It describes the relationship between economic development, that is commonly represented by income per capita, and environmental quality, often captured through per capita CO2 emissions.
When analyzed across a broad set of countries, the EKC typically...
