Research projects

Research project: “Green finance for renewable energy in Germany: a dynamic analysis” funded by Research Department Closed Carbon Cycle Economics (RUB).

The research aims at:
1. Set up a database of sources of public finance devoted to renewable energy in Germany;
2. Assess the composition of the main German public finance institutions portfolios;
3. Study the dynamic evolution of public finance in Germany (in the period 2005-2019).

Research outputs:

D’Orazio, P., Löwenstein, P., Mobilising investment in renewable energy in Germany: which role for public investment banks?, Journal of Sustainable Finance & Investment, 2020, 1-24

Research project “Macro-prudential instruments to scale up green finance“ funded by ClimateWorks – Inspire (with L. Popoyan)

Research questions
(1) Which “green” macroprudential instruments are more suitable to achieve both financial stability (or not harming financial stability) and canalize green investments in the economy?
(2) What is the effectiveness of different combinations of “green” macroprudential tools?
(3) Which role could “green” macroprudential policy play in addressing climate-related financial risks, aligning financial stability and sustainability objectives, incentivising green investments and contributing to a low-carbon transition?

Policy relevance
The results of the proposed research project could help in understanding, on the one hand, whether climate-related macroprudential tools lead either to market distortions or financial instability. On the other hand, it could assist in detecting which are the main factors that hinder, or contribute, to the effectiveness of such Instruments. In doing so, the research project will contribute to the work of the NGFS’s Workstreams 2 “Macrofinancial workstream” and 3 “Scaling up green finance”, respectively.