Welcome to the Chair of Economics!
The Chair’s primary research focuses on exploring the role of climate-related financial policies in promoting financial stability and facilitating the transition to a low-carbon economy.
We also investigate the combined impacts of climate risks and epidemic outbreaks on the financial sector. In response to the challenges posed by the COVID-19 pandemic, our ongoing research examines the trade-offs between virus containment measures, economic performance, and financial stability. For more information, please visit our "Research" page.
The Chair’s teaching activities emphasize the macroeconomic implications of climate risks, climate and sustainable finance, and agent-based computational macroeconomics. For more information, please visit our "Teaching" page.
News
January 2025
New Publication in "Scientific Reports - Nature Portfolio"
Discover the latest research contribution: "Evaluating climate-related financial policies’ impact on decarbonization with machine learning methods" by Jun-Prof. D'Orazio and A.D. Pham published in Scientific Reports (Nature Portfolio). This study leverages cutting-edge machine learning methods to assess the effectiveness of climate-related financial policies in driving decarbonization. The findings provide innovative insights into the role of finance in achieving climate goals. Explore the full publication here.December 2024
New Publication in "Energy Research & Social Science"
A new paper has been published by the Chair of Economics: "Addressing climate risks through fiscal policy in emerging and developing economies: What do we know and what lies ahead?" in Energy Research & Social Science. The paper explores the role of fiscal policy in managing climate risks in Emerging and Developing Economies (EMDEs), offering insights into current knowledge and potential research directions. Further details are available here.
October 2024
Tracking the Global Policy Impact of the Chair of Economics Research
According to SAGE Policy Profiles, Jun-Prof. D’Orazio’s research has made a substantial impact in policy discussions worldwide, particularly in sustainability and climate finance. Her work has been cited 58 times across 56 policy documents, with 36 of those documents referenced in an additional 370 policy documents- reaching a total of 482 citations. This geographic and thematic spread highlights the influence of Jun-Prof. D’Orazio’s research on policies addressing financial stability, climate risks, and the green transition. She remains committed to advancing evidence-based research that shapes effective policymaking in these essential areas.
Contribution to OECD Report
Jun-Prof. D'Orazio has contributed to the OECD Report "OECD Review on Aligning Finance with Climate Goals - Assessing Progress to Net Zero and Preventing Greenwashing". This inaugural report consolidates key evidence on the alignment of finance with climate policy, addressing crucial questions about assessing climate alignment, understanding finance flows and stocks, and the role of financial sector policies. The report outlines actionable steps for policymakers and financial stakeholders to improve data quality and mitigate greenwashing, supporting robust, evidence-based decision-making toward achieving net-zero goals.
The full report is available at this link.
August 2024
New publication in "Applied Energy"
The latest research paper from the Chair of Economics, titled "Assessing the Fiscal Implications of Changes in Critical Minerals' Demand in the Low-Carbon Energy Transition," has been published in Applied Energy.
The article is available open access at this link.
New publication in the "Encyclopedia of Monetary Policy, Financial Markets, and Banking"
A contribution on the topic "Global Change and Financial Policy: Tackling Climate Risks, Biodiversity Loss, and Pandemic Challenges," authored by Jun-Professor D'Orazio, has been published in the Encyclopedia of Monetary Policy, Financial Markets, and Banking (Elsevier).
The paper is available at this link.
July 2024
New publication in "Frontiers Environmental Economics"
The editorial on the research topic "Fostering the Energy Transition Amidst Geopolitical and Climate Risks in a Post-COVID World" - co-authored by Jun-Prof. D'Orazio, Prof. Kemfert, and Dr. Franziska M. Hoffart - has now been published in Frontiers Environmental Economics.
The paper is available at this link.
June 2024
Invited Lecture at the Bank of England (London, UK)
Jun-Prof. D'Orazio presented her research on the Climate-related Financial Policy Index (CRFPI) at the Climate Hub Division of the Bank of England.
Participation in the International Conference CEF "Conference on Computing in Economics and Finance"
Jun-Prof. D'Orazio will participate in the 30th International Conference on Computing in Economics and Finance at Nanyang Technological University (Singapore).
Mai 2024
Guest Researcher at CEMLA and Participation in International Conference
Jun-Prof. D'Orazio will be a guest researcher at CEMLA - Centro de Estudios Monetarios Latinoamericanos and will participate in the "2024 Latin American Journal of Central Banking Conference" in Mexico City.
April 2024
17.04.2024 Invited Lecture at DIW Berlin
Jun-Prof. D'Orazio presented her latest research on the the German banking sector's vulnerability to climate-related transition risks at DIW Berlin - German Institute for Economic Research - Energy, Transportation, and Environment Department.
04.04.2024 New Publication in the "Journal of Sustainable Finance and Investment"
Jun-Prof. D'Orazio latest research "No need to worry? Estimating the exposure of the German banking sector to climate-related transition risks" - jointly with Dr. Tobias Hertel and Fynn Kasbrink - is published in the Journal of Sustainable Finance & Investment. Using data on financial firms' exposure to nonfinancial companies from the Deutsche Bundesbank, the analysis evaluates the German banking sector's vulnerability to climate-related transition risks. The paper is available open-access at this link.
March 2024
New Publication in "Applied Energy"
The research "Exploring the interdependence of climate, finance, energy, and geopolitics: A conceptual framework for systemic risks amidst multiple crises" conducted by Jun-Prof. D'Orazio with Dr. Franziska M. Hoffart, Prof. Holz, and Prof. Kemfert has been published in the scientific journal Applied Energy. The paper provides a groundbreaking conceptual framework to analyze the dynamic interplay between climate change, financial stability, and geopolitical crises affecting energy transitions. The paper is available open-access at this link.
Invited speaker at the Financial Stability Conference organised by the Magyar Nemzeti Bank
On March 26th, Jun-Prof D'Orazio is scheduled to deliver a speech at the Financial Stability Conference organized by the Magyar Nemzeti Bank. The speech, titled "Systemic under-pricing of climate risks in financial markets: does it warrant a macroprudential response?" will address the issue of climate risks in financial markets and explore whether these risks justify a macroprudential response. This event aims to bring together experts and stakeholders to discuss the implications of climate risks on financial stability and the potential need for regulatory measures. Further information is available on the event website.
January 2024
Participation to the Conference "Banques centrales et bien commun" (Sorbonne Alliance, Paris)
On January 19th, Jun-Prof D'Orazio presented her latest paper, "Navigating the Green Dilemma: Central Banks' Quest for Climate Resilience and Market Neutrality," at the conference "Central Banks and the Common Good" organized by the Universities of Université Sorbonne Nouvelle, University of Paris I: Panthéon-Sorbonne and ESCP Business School. The conference successfully brought together a mix of professionals, including economists, historians, sociologists, and experts from various other disciplines. The goal was to gather expertise from diverse fields to delve into our times' intricate social and financial issues.
December 2023
New Publication in "Energy Research & Social Science"
Jun-Prof. D'Orazio's new publication, "Charting the Complexities of a Post-COVID Energy Transition: Emerging Research Frontiers for a Sustainable Future," is now available in Energy Research & Social Science. This paper explores the profound impact of the global COVID-19 pandemic on the journey towards a low-carbon future in the post-pandemic era. It uncovers how the pandemic's far-reaching effects on economies and societies have introduced new layers of complexity to the energy transition landscape, marked by uncertainty, economic challenges, and disruptions in global supply chains and trade.
04.12.2023 - Participation in the International Conference of Applied Energy (Doha, Qatar)
Jun-Prof. D'Orazio will present her research on "Critical Minerals and the Low-Carbon Transition: Economic Implications for Emerging Markets and Developing Economies", developed jointly with the World Bank, at the International Conference of Applied Energy (Doha, Qatar). The research focuses on the transition towards a low-carbon economy and its fiscal implications for major mineral-exporting countries.
25.11.2023 - New paper published in "Current Opinion in Environmental Sustainability"
Jun-Prof. D'Orazio published her latest contribution "Navigating financial stability through the dual challenges of climate change and pandemics" on the international journal Current Opinion in Environmental Sustainability. This paper comprehensively reviews the most recent literature concerning climate- and pandemic-related financial risks and their implications for the global financial system.
The contribution is available here.
21.10.2023 - New invited contribution published in the scientific journal "One Earth"
Jun-Prof. D'Orazio published her latest contribution "Banking for sustainability: A necessary global shift" on "Catalyzing the transformation to sustainable finance" in the international journal One Earth.
You can read the invited contribution here.
16.10.2023 - Participation at the "Cross-border Climate Change Impacts and Systemic Risks in Europe and Beyond" Conference at PIK-Potsdam
On October 16th, 2023, Jun-Prof. D'Orazio presented at the "Cross-border Climate Change Impacts and Systemic Risks in Europe and Beyond" Conference held by the Potsdam Institute for Climate Impact Research.
Her research delves into the complex connections between pandemics, economic factors, and energy transition policies, providing valuable insights into these interrelated issues, and has been financed by the DFG.
Two papers have been presented:
Paper 1: "An Integrated ABM Approach to Understanding the Impact of Pandemics and Fiscal Stimuli on the Economy and Climate": In her first paper, Professor D'Orazio employed sophisticated Agent-Based Modeling (ABM) techniques to unravel the complex relationships between pandemics, economic stimuli, and climate dynamics. This innovative methodology allowed for a nuanced exploration of the intricate balance between public health crises, economic stability, and environmental sustainability. By employing a holistic approach, this study contributes substantially to the theoretical underpinnings of interdisciplinary research, illuminating the subtle connections that bind health, economic factors, and climate change.
Paper 2: "Uncovering the Nexus between Fossil-Based Energy Security, Financial Policies, and Climate and Energy Transition Risks: Insights from a German Economic Case Study" (Co-authored with F. Hoffart, F. Holz, and C. Kemfert): The second paper, a collaborative effort with distinguished colleagues, delved deeply into Germany's economic landscape. The research team dissected the intricate relationships between fossil-based energy security, financial policies, and the inherent risks associated with climate and energy transition through meticulous analysis and astute observations. This endeavor provided a comprehensive understanding of Germany's economic policies and underscored the complexities involved in energy transitions, thus offering valuable insights for policymakers and researchers alike.
Dr. Franziska Hoffart presented the paper in the poster session.
18.09.2023 - Call for Ph.D. and student assistant positions
Are you interested in pursuing research opportunities and beginning your academic journey? The Chair of Economics is pleased to announce available positions for a PhD Student and a Student Assistant. We offer a stimulating and inclusive environment, mentorship opportunities, and the chance to contribute to groundbreaking research. For additional information on requirements and deadlines, see the corresponding calls for applications posted below. We look forward to welcoming passionate individuals to our team!
You can find the call for a student assistant position here.
Click here for the job advertisement for the research assistant position.
11.07.2023 - New paper presenting the Climate-related Financial Policies Database.
The article introduces the Climate-related Financial Policies Database and provides statistics on its main indicators. The database records many aspects of green financial policymaking for 74 nations from 2000 to 2020 by financial (central banks, financial regulators, supervisors) and non-financial (ministries, banking organizations, governments, and others) entities. The database is crucial for identifying and evaluating present and future trends in green financial policies, as well as the role played by central banks and regulators in raising green financing and taming financial instability caused by climate change.
The full text can be found here.
05.05.2023 - New book chapter on green central banking.
The chapter presents the academic debate and actual measures implemented by these institutions in the past two decades. The aim of the analysis is twofold. On the one hand, it shows how and to what extent central banks are increasingly considered important actors in promoting policies that enable a green economic agenda. On the other hand, since climate change and its effects on an economy are expected to generate new risks for financial markets, it highlights the new policy tools that central banks and financial regulators need to consider.
The chapter is available here.
